Income Per Share/Income Per Class A Unit (Tables)

9 Months Ended

Sep. 30, 2019

Schedule Of Earnings Per Share Basic And Diluted

Vornado Realty Trust

The following table presents the calculations of (i) basic income per common share which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares and (ii) diluted income per common share which includes the weighted average common shares and dilutive share equivalents. Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include restricted stock awards, based on the two-class method. Other potential dilutive share equivalents such as our employee stock options, OP Units, OPPs, AO LTIP Units and Performance Conditioned AO LTIP Units are included in the computation of diluted Earnings Per Share ("EPS") using the treasury stock method, while the dilutive effect of our Series A convertible preferred shares is reflected in diluted EPS by application of the if-converted method.



(Amounts in thousands, except per share amounts)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests	$	335,445		$	203,122		$	2,942,267		$	336,570
(Loss) income from discontinued operations, net of income attributable to noncontrolling interests	(7		)	57			(80		)	357
Net income attributable to Vornado	335,438			203,179			2,942,187			336,927
Preferred share dividends	(12,532		)	(12,534		)	(37,598		)	(38,103		)
Preferred share issuance costs	—			—			—			(14,486		)
Net income attributable to common shareholders	322,906			190,645			2,904,589			284,338
Earnings allocated to unvested participating securities	(33		)	(17		)	(291		)	(33		)
Numerator for basic income per share	322,873			190,628			2,904,298			284,305
Impact of assumed conversions:
Convertible preferred share dividends	14			15			43			47
Earnings allocated to Out-Performance Plan units	—			—			9			127
Numerator for diluted income per share	$	322,887		$	190,643		$	2,904,350		$	284,479

Denominator:
Denominator for basic income per share – weighted average shares	190,814			190,245			190,762			190,176
Effect of dilutive securities⁽¹⁾:
Employee stock options and restricted stock awards	176			1,045			227			972
Convertible preferred shares	34			37			35			38
Out-Performance Plan units	—			—			3			106
Denominator for diluted income per share – weighted average shares and assumed conversions	191,024			191,327			191,027			191,292

INCOME PER COMMON SHARE – BASIC:
Income from continuing operations, net	$	1.69		$	1.00		$	15.22		$	1.50
Net income per common share	$	1.69		$	1.00		$	15.22		$	1.50

INCOME PER COMMON SHARE – DILUTED:
Income from continuing operations, net	$	1.69		$	1.00		$	15.20		$	1.49
Net income per common share	$	1.69		$	1.00		$	15.20		$	1.49

____________________

(1)

The effect of dilutive securities excludes an aggregate of 13,431 and 12,372 weighted average common share equivalents, for the three months ended September 30, 2019 and 2018, respectively, and 13,067 and 12,220 weighted average common share equivalents for the nine months ended September 30, 2019 and 2018, respectively, as their effect was anti-dilutive.

Vornado Realty L.P.

Earnings per share

Schedule Of Earnings Per Share Basic And Diluted

Vornado Realty L.P.

The following table presents the calculations of (i) basic income per Class A unit which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units and (ii) diluted income per Class A unit which includes the weighted average Class A unit and dilutive Class A unit equivalents. Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include Vornado restricted stock awards, OP Units and OPPs, based on the two-class method. Other potential dilutive share equivalents such as Vornado stock options, AO LTIP Units and Performance Conditioned AO LTIP Units are included in the computation of diluted income per share using the treasury stock method, while the dilutive effect of our Series A convertible preferred shares is reflected in diluted EPS by application of the if-converted method.



(Amounts in thousands, except per unit amounts)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests in consolidated subsidiaries	$	358,083		$	215,789		$	3,139,626		$	355,538
(Loss) income from discontinued operations	(8		)	61			(85		)	381
Net income attributable to Vornado Realty L.P.	358,075			215,850			3,139,541			355,919
Preferred unit distributions	(12,574		)	(12,582		)	(37,722		)	(38,248		)
Preferred unit issuance costs	—			—			—			(14,486		)
Net income attributable to Class A unitholders	345,501			203,268			3,101,819			303,185
Earnings allocated to unvested participating securities	(2,449		)	(997		)	(14,807		)	(2,259		)
Numerator for basic income per Class A unit	343,052			202,271			3,087,012			300,926
Impact of assumed conversions:
Convertible preferred unit distributions	14			15			43			47
Numerator for diluted income per Class A unit	$	343,066		$	202,286		$	3,087,055		$	300,973

Denominator:
Denominator for basic income per Class A unit – weighted average units	203,009			202,103			202,903			202,033
Effect of dilutive securities⁽¹⁾:
Vornado stock options, Vornado restricted stock awards, OP Units and OPPs	507			1,454			478			1,329
Convertible preferred units	34			37			35			38
Denominator for diluted income per Class A unit – weighted average units and assumed conversions	203,550			203,594			203,416			203,400

INCOME PER CLASS A UNIT – BASIC:
Income from continuing operations, net	$	1.69		$	1.00		$	15.21		$	1.49
Net income per Class A unit	$	1.69		$	1.00		$	15.21		$	1.49

INCOME PER CLASS A UNIT – DILUTED:
Income from continuing operations, net	$	1.69		$	0.99		$	15.18		$	1.48
Net income per Class A unit	$	1.69		$	0.99		$	15.18		$	1.48

____________________

(1)

The effect of dilutive securities excludes an aggregate of 905 and 105 weighted average Class A unit equivalents, for the three months ended September 30, 2019 and 2018 respectively, and 678 and 112 weighted average Class A unit equivalents for the nine months ended September 30, 2019 and 2018, respectively, as their effect was anti-dilutive.