Stockholders’ Equity and Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders’ Equity and Earnings (Loss) Per Share

Stockholders’ Equity and Earnings (Loss) Per Share

In August 2012, we completed an underwritten public offering and concurrent private placement totaling 3.6 million shares of our common stock at a price to the public and in the private placement of $21.20 per share. In the concurrent private placement, 500,000 shares were purchased by MGN (USA), Inc., an affiliate of our largest stockholder, Gazit-Globe, Ltd. ("Gazit"), which may be deemed to be controlled by Chaim Katzman, the Chairman of our Board of Directors. In September 2012, the underwriters exercised their option to purchase an additional 465,000 shares of our common stock at a price to the public of $21.20 per share. The offerings generated proceeds to us of approximately $85.6 million. The stock issuance costs and underwriting discounts were approximately $813,000. We used the net proceeds to reduce the outstanding balance under our unsecured revolving credit facility.

In connection with the CapCo acquisition on January 4, 2011, LIH transferred and assigned to us an outstanding promissory note of CapCo in the amount of $67.0 million in exchange for approximately 4.1 million shares of our common stock and one share of a newly-established class of our capital stock, Class A common stock, that (i) was convertible into 10,000 shares of our common stock in certain circumstances, and (ii) subject to certain limitations, entitled LIH to voting rights with respect to a number of shares of our common stock determined with reference to the number of joint venture shares held by LIH from time to time. Effective June 29, 2011, the one share of Class A common stock was converted in accordance with its terms into 10,000 shares of our common stock.

Also in connection with the closing of the CapCo transaction in 2011, we executed a Registration and Liquidity Rights Agreement between us and LIH pursuant to which we agreed to register the approximately 4.1 million shares of our common stock received by LIH in the transaction and the approximately 11.4 million shares of our common stock issuable if we exercise our right to pay for the redemption of LIH’s joint venture units with shares of our common stock. On March 9, 2012, LIH sold the approximately 4.1 million shares of our common stock issued in exchange for the CapCo note and upon conversion of the Class A common stock pursuant to a registered public offering. Pursuant to the Registration and Liquidity Rights Agreement, we paid all of the expenses of the offering other than underwriting discounts and legal expenses of counsel to LIH, which amounted to $169,000 for the nine months ended September 30, 2012, and are included in general and administrative expenses in the accompanying condensed consolidated statement of operation.

Earnings (Loss) per Share

The following summarizes the calculation of basic EPS and provides a reconciliation of the amounts of net income (loss) available to common stockholders and shares of common stock used in calculating basic EPS:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2012			2011				2012			2011
	(In thousands, except per share amounts)
Income (loss) from continuing operations	$	10,506		$	(7,220	)		$	26,394		$	32,430
Net income attributable to noncontrolling interests	(2,736		)	(2,459		)		(8,202		)	(7,006		)
Income (loss) from continuing operations attributable to Equity One, Inc.	7,770			(9,679		)		18,192			25,424
Allocation of continuing income to restricted share awards and to Class A     common stockholder	(272		)	(288		)		(820		)	(885		)
Income (loss) from continuing operations attributable to common     stockholders	7,498			(9,967		)		17,372			24,539
Income from discontinued operations	295			5,011				11,123			11,858
Net loss attributable to noncontrolling interests	—			11				—			41
Income from discontinued operations attributable to Equity One, Inc.	295			5,022				11,123			11,899
Allocation of discontinued income to restricted share awards and to Class    A common stockholder	(3		)	(58		)		(122		)	(145		)
Income from discontinued operations attributable to common stockholders	292			4,964				11,001			11,754
Net income (loss) available to common stockholders	$	7,790		$	(5,003	)		$	28,373		$	36,293
Weighted average shares outstanding — Basic	114,699			112,541				113,359			109,267
Basic earnings (loss) per share attributable to the common stockholders:
Continuing operations	$	0.07		$	(0.09	)		$	0.15		$	0.22
Discontinued operations	—			0.04				0.10			0.11
Earnings (loss) per common share — Basic	$	0.07		$	(0.04	)	*	$	0.25		$	0.33

* Note: EPS does not foot due to the rounding of the individual calculations.

The following summarizes the calculation of diluted EPS and provides a reconciliation of the amounts of net income (loss) available to common stockholders and shares of common stock used in calculating diluted EPS:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2012			2011				2012			2011
	(In thousands, except per share amounts)
Income (loss) from continuing operations	$	10,506		$	(7,220	)		$	26,394		$	32,430
Net income attributable to noncontrolling interests	(2,736		)	(2,459		)		(8,202		)	(7,006		)
Income (loss) from continuing operations attributable to Equity One, Inc.	7,770			(9,679		)		18,192			25,424
Allocation of continuing income to restricted share awards and to   Class A common stockholder	(272		)	(288		)		(820		)	(885		)
Income (loss) from continuing operations attributable to common     stockholders	7,498			(9,967		)		17,372			24,539
Income from discontinued operations	295			5,011				11,123			11,858
Net loss attributable to noncontrolling interests	—			11				—			41
Income from discontinued operations attributable to Equity One, Inc.	295			5,022				11,123			11,899
Allocation of discontinued income to restricted share awards and to    Class A common stockholder	(3		)	(53		)		(110		)	(131		)
Income from discontinued operations attributable to common    stockholders	292			4,969				11,013			11,768
Net income (loss) available to common stockholders	$	7,790		$	(4,998	)		$	28,385		$	36,307
Weighted average shares outstanding — Basic	114,699			112,541				113,359			109,267
Stock options using the treasury method	299			—				237			157
Executive Incentive Plan shares using the treasury method	—			—				85			—
Weighted average shares outstanding — Diluted	114,998			112,541				113,681			109,424
Diluted earnings (loss) per share attributable to common stockholders:
Continuing operations	$	0.07		$	(0.09	)		$	0.15		$	0.22
Discontinued operations	—			0.04				0.10			0.11
Earnings (loss) per common share — Diluted	$	0.07		$	(0.04	)	*	$	0.25		$	0.33

* Note: EPS does not foot due to the rounding of the individual calculations.

The computation of diluted EPS for the three and nine months ended September 30, 2012 did not include 1.9 million shares of common stock, issuable upon the exercise of outstanding options, at prices ranging from $21.64 to $26.66 for both periods, because the option prices were greater than the average market prices of our common shares during these respective periods. The computation of diluted EPS for both the three and nine months ended September 30, 2011 did not include 1.9 million shares of common stock, issuable upon the exercise of outstanding options, at prices ranging from $18.88 to $26.66, because the option prices were greater than the average market prices of our common shares during these respective periods.

The computation of diluted EPS for both the three and nine months ended September 30, 2012 and 2011 did not include the 11.4 million joint venture units held by LIH which are convertible into our common stock. The LIH shares are redeemable for cash or, solely at our option, our common stock on a one-for-one basis, subject to certain adjustments. These convertible units are not included in the diluted weighted average share count because their inclusion is anti-dilutive.