Income Per Share / Income Per Class A Unit

6 Months Ended

Jun. 30, 2017

18. Income Per Share/Income Per Class A Unit

Vornado Realty Trust

The following table provides a reconciliation of both net income and the number of common shares used in the computation 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. Dilutive share equivalents may include our Series A convertible preferred shares, employee stock options, restricted stock awards and Out-Performance Plan awards.

(Amounts in thousands, except per share amounts)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2017		2016		2017		2016
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	131,479	$	238,504	$	193,084	$	144,033
	Income from discontinued operations, net of income
		attributable to noncontrolling interests		622		2,322		2,898		2,994
	Net income attributable to Vornado			132,101		240,826		195,982		147,027
	Preferred share dividends			(16,129)		(20,363)		(32,258)		(40,727)
	Net income attributable to common shareholders			115,972		220,463		163,724		106,300
	Earnings allocated to unvested participating securities			(13)		(25)		(27)		(30)
	Numerator for basic income per share			115,959		220,438		163,697		106,270
	Impact of assumed conversions:
		Convertible preferred share dividends		20		21		-		-
		Earnings allocated to Out-Performance Plan units		-		-		233		24
	Numerator for diluted income per share		$	115,979	$	220,459	$	163,930	$	106,294

Denominator:
	Denominator for basic income per share – weighted average shares			189,395		188,772		189,304		188,715
	Effect of dilutive securities⁽¹⁾:
		Employee stock options and restricted share awards		1,011		1,070		1,089		1,020
		Convertible preferred shares		38		43		-		-
		Out-Performance Plan units		-		-		281		265
	Denominator for diluted income per share – weighted average
		shares and assumed conversions		190,444		189,885		190,674		190,000

INCOME PER COMMON SHARE – BASIC:
	Income from continuing operations, net		$	0.61	$	1.16	$	0.84	$	0.54
	Income from discontinued operations, net			-		0.01		0.02		0.02
	Net income per common share		$	0.61	$	1.17	$	0.86	$	0.56

INCOME PER COMMON SHARE – DILUTED:
	Income from continuing operations, net		$	0.61	$	1.15	$	0.84	$	0.54
	Income from discontinued operations, net			-		0.01		0.02		0.02
	Net income per common share		$	0.61	$	1.16	$	0.86	$	0.56


(1)	The effect of dilutive securities for the three months ended June 30, 2017 and 2016 excludes an aggregate of 12,268 and 12,278 weighted average common share equivalents, respectively, and 12,125 and 12,052 weighted average common share equivalents for the six months ended June 30, 2017 and 2016, respectively, as their effect was anti-dilutive.

Vornado Realty L.P.

Earnings per share

Income Per Share

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

Vornado Realty L.P.

The following table provides a reconciliation of both net income and the number of Class A units used in the computation 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 units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, restricted unit awards and Out-Performance Plan awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2017		2016		2017		2016
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	139,144	$	252,882	$	203,826	$	150,880
	Income from discontinued operations			663		2,475		3,091		3,191
	Net income attributable to Vornado Realty L.P.			139,807		255,357		206,917		154,071
	Preferred unit distributions			(16,177)		(20,412)		(32,355)		(40,824)
	Net income attributable to Class A unitholders			123,630		234,945		174,562		113,247
	Earnings allocated to unvested participating securities			(742)		(1,059)		(1,759)		(1,412)
	Numerator for basic income per Class A unit			122,888		233,886		172,803		111,835
	Impact of assumed conversions:
		Convertible preferred unit distributions		20		22		-		-
	Numerator for diluted income per Class A unit		$	122,908	$	233,908	$	172,803	$	111,835

Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		201,127		200,369		200,987		200,220
	Effect of dilutive securities⁽¹⁾:
		Vornado stock options and restricted unit awards		1,458		1,564		1,630		1,601
		Convertible preferred units		38		42		-		-
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		202,623		201,975		202,617		201,821

INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	0.61	$	1.16	$	0.84	$	0.54
	Income from discontinued operations, net			-		0.01		0.02		0.02
	Net income per Class A unit		$	0.61	$	1.17	$	0.86	$	0.56

INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	0.61	$	1.15	$	0.84	$	0.54
	Income from discontinued operations, net			-		0.01		0.01		0.01
	Net income per Class A unit		$	0.61	$	1.16	$	0.85	$	0.55


(1)	The effect of dilutive securities for the three months ended June 30, 2017 and 2016 excludes an aggregate of 89 and 187 weighted average Class A unit equivalents, respectively, and 182 and 231 weighted average Class A unit equivalents for the six months ended June 30, 2017 and 2016, respectively, as their effect was anti-dilutive.