Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Earnings Per Share

Note 13 — Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) attributable to Arbor Realty Trust, Inc. by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation.  Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period using the treasury stock method.  The Company’s common stock equivalents include the dilutive effect of warrants outstanding and the potential settlement of incentive management fees in common stock.

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the three months ended September 30, 2012 and 2011.

	For the Three Months Ended				For the Three Months Ended
	September 30, 2012				September 30, 2011
	Basic		Diluted		Basic			Diluted (1)
Income (loss) from continuing operations, net of noncontrolling interest	$	2,060,329	$	2,060,329	$	(2,068,526	)	$	(2,068,526	)
Income (loss) from discontinued operations	—		—		(373,703		)	(373,703		)
Net income (loss) attributable to Arbor Realty Trust, Inc	$	2,060,329	$	2,060,329	$	(2,442,229	)	$	(2,442,229	)
Weighted average number of common shares outstanding	27,749,225		27,749,225		25,239,590			25,239,590
Dilutive effect of warrants	—		288,819		—			—
Weighted average number of common shares outstanding	27,749,225		28,038,044		25,239,590			25,239,590
Income (loss) from continuing operations, net of noncontrolling interest, per common share	$	0.07	$	0.07	$	(0.09	)	$	(0.09	)
Loss from discontinued operations per common share	—		—		(0.01		)	(0.01		)
Net income (loss) attributable to Arbor Realty Trust, Inc. per common share	$	0. 07	$	0.07	$	(0.10	)	$	(0.10	)

(1) For the three months ended September 30, 2011, the Company had a net loss and thus did not have a dilutive effect from one million warrants.

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the nine months ended September 30, 2012 and 2011.

	For the Nine Months Ended				For the Nine Months Ended
	September 30, 2012				September 30, 2011
	Basic		Diluted		Basic			Diluted (1)
Income (loss) from continuing operations, net of noncontrolling interest	$	16,838,238	$	16,838,238	$	(10,633,393	)	$	(10,633,393	)
Income (loss) from discontinued operations	4,929,889		4,929,889		(1,896,422		)	(1,896,422		)
Net income (loss) attributable to Arbor Realty Trust, Inc	$	21,768,127	$	21,768,127	$	(12,529,815	)	$	(12,529,815	)
Weighted average number of common shares outstanding	25,643,470		25,643,470		25,214,832			25,214,832
Dilutive effect of warrants	—		247,613		—			—
Weighted average number of common shares outstanding	25,643,470		25,891,083		25,214,832			25,214,832
Income (loss) from continuing operations, net of noncontrolling interest, per common share	$	0.66	$	0.65	$	(0.42	)	$	(0.42	)
Loss from discontinued operations per common share	0.19		0.19		(0.08		)	(0.08		)
Net income (loss) attributable to Arbor Realty Trust, Inc. per common share	$	0.85	$	0.84	$	(0.50	)	$	(0.50	)

(1) For the nine months ended September 30, 2011, the Company had a net loss and thus did not have a dilutive effect from one million warrants.