Earnings Per Share

3 Months Ended

Mar. 31, 2023

EARNINGS PER SHARE AND UNIT

We have calculated earnings per share (“EPS”) and earnings per unit ("EPU") under the two-class method. The two-class method is an earnings allocation methodology whereby EPS and EPU for each class of common stock and partnership units, respectively, and participating securities is calculated according to dividends or distributions declared and participation rights in undistributed earnings. For both the three months ended March 31, 2023 and 2022, we had 0.3 million weighted average unvested shares and units outstanding, which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS and EPU between common shares and units and unvested shares and units; the portion of earnings allocated to the unvested shares and units is reflected as “earnings allocated to unvested shares” or "earnings allocated to unvested units" in the reconciliations below.

The following potentially issuable shares were excluded from the diluted EPS and EPU calculations because their impact is anti-dilutive:

•exercise of 1,829 stock options for the three months ended March 31, 2023,

•conversions of downREIT operating partnership units for both the three months ended March 31, 2023 and 2022,

•conversions of 5.417% Series 1 Cumulative Convertible Preferred Shares and units for both the three months ended March 31, 2023 and 2022, and

•the issuance of 0.7 million shares and units issuable under common share forward sales agreements for the three months ended March 31, 2022.

Additionally, 10,441 unvested restricted stock units are excluded from the diluted EPS and EPU calculations as the market based performance criteria in the awards has not yet been achieved.

Federal Realty Investment Trust Earnings per Share


	Three Months Ended
	March 31,
		2023		2022
		(In thousands, except per share data)
NUMERATOR
Net income		$	57,731	$	54,728
Less: Preferred share dividends		(2,008)		(2,010)
Less: Income from operations attributable to noncontrolling interests		(2,396)		(2,744)
Less: Earnings allocated to unvested shares		(327)		(307)



Net income available for common shareholders, basic and diluted		$	53,000	$	49,667
DENOMINATOR
Weighted average common shares outstanding, basic		81,141		78,446
Effect of dilutive securities:

Open forward contracts for share issuances		—		97


Weighted average common shares outstanding, diluted		81,141		78,543

EARNINGS PER COMMON SHARE, BASIC AND DILUTED:
Net income available for common shareholders		$	0.65	$	0.63

Federal Realty OP LP Earnings per Unit


	Three Months Ended
	March 31,
		2023		2022
		(In thousands, except per unit data)
NUMERATOR
Net income		$	57,731	$	54,728
Less: Preferred unit distributions		(2,008)		(2,010)
Less: Income from operations attributable to noncontrolling interests		(2,396)		(2,744)
Less: Earnings allocated to unvested units		(327)		(307)



Net income available for common unit holders, basic and diluted		$	53,000	$	49,667
DENOMINATOR
Weighted average common units outstanding, basic		81,141		78,446
Effect of dilutive securities:

Common unit issuances relating to open common share forward contracts		—		97


Weighted average common units outstanding, diluted		81,141		78,543

EARNINGS PER COMMON UNIT, BASIC AND DILUTED:
Net income available for common unit holders		$	0.65	$	0.63