Income Per Share/Income Per Class A Unit

3 Months Ended

Mar. 31, 2020

Income Per Share/Income Per Class A Unit

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 nonforfeitable 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, restricted Operating Partnership units ("OP Units"), out-performance plan awards ("OPPs"), appreciation-only long term incentive plan units ("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 March 31,
	2020			2019
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests	$	17,494		$	194,150
Loss from discontinued operations	—			(128		)
Net income attributable to Vornado	17,494			194,022
Preferred share dividends	(12,531		)	(12,534		)
Net income attributable to common shareholders	4,963			181,488
Earnings allocated to unvested participating securities	(51		)	(19		)
Numerator for basic income per share	4,912			181,469
Impact of assumed conversions:
Convertible preferred share dividends	—			15
Numerator for diluted income per share	$	4,912		$	181,484

Denominator:
Denominator for basic income per share – weighted average shares	191,038			190,689
Effect of dilutive securities⁽¹⁾:
Employee stock options and restricted stock awards	75			271
Convertible preferred shares	—			36
Denominator for diluted income per share – weighted average shares and assumed conversions	191,113			190,996

INCOME PER COMMON SHARE - BASIC:
Net income per common share	$	0.03		$	0.95

INCOME PER COMMON SHARE - DILUTED:
Net income per common share	$	0.03		$	0.95

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(1)	The effect of dilutive securities for the three months ended March 31, 2020 and 2019 excluded an aggregate of 13,543 and 12,525 weighted average common share equivalents, respectively, as their effect was anti-dilutive.


19.	Income Per Share/Income Per Class A Unit - continued

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 unit equivalents such as Vornado stock options, AO LTIP Units and Performance Conditioned AO LTIP Units are included in the computation of diluted income per unit ("EPU") using the treasury stock method, while the dilutive effect of our Series A convertible preferred units is reflected in diluted EPU by application of the if-converted method.



(Amounts in thousands, except per unit amounts)	For the Three Months Ended March 31,
	2020			2019
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests in consolidated subsidiaries	$	17,884		$	206,361
Loss from discontinued operations	—			(137		)
Net income attributable to Vornado Realty L.P.	17,884			206,224
Preferred unit distributions	(12,572		)	(12,575		)
Net income attributable to Class A unitholders	5,312			193,649
Earnings allocated to unvested participating securities	(4,918		)	(1,147		)
Numerator for basic income per Class A unit	394			192,502
Impact of assumed conversions:
Convertible preferred unit distributions	—			15
Numerator for diluted income per Class A unit	$	394		$	192,517

Denominator:
Denominator for basic income per Class A unit – weighted average units	203,370			202,772
Effect of dilutive securities⁽¹⁾:
Vornado stock options, Vornado restricted stock awards, OP Units and OPPs	146			536
Convertible preferred units	—			36
Denominator for diluted income per Class A unit – weighted average units and assumed conversions	203,516			203,344

INCOME PER CLASS A UNIT - BASIC:
Net income per Class A unit	$	—		$	0.95

INCOME PER CLASS A UNIT - DILUTED:
Net income per Class A unit	$	—		$	0.95

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(1)

The effect of dilutive securities for the three months ended March 31, 2020 and 2019 excluded an aggregate of 1,140 and 177 Class A unit equivalents, respectively, as their effect was anti-dilutive.