Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

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 and six months ended June 30, 2022 and 2021, 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 682 stock options for the three and six months ended June 30, 2021,

•conversions of downREIT operating partnership units and 5.417% Series 1 Cumulative Convertible Preferred Shares for both the three and six months ended June 30, 2022 and 2021, and

•the issuance of 1.5 million and 0.7 million shares and units issuable under common share forward sales agreements for the three and six months ended June 30, 2022, respectively, and 0.9 million and 1.4 million, respectively, for the three and six months ended June 30, 2021.

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				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands, except per share data)
NUMERATOR
Net income	$	64,467	$	48,059	$	119,195	97,798
Less: Preferred share dividends	(2,008)		(2,011)		(4,018)		(4,021)
Less: Income from operations attributable to noncontrolling interests	(2,791)		(1,855)		(5,535)		(3,358)
Less: Earnings allocated to unvested shares	(300)		(298)		(607)		(592)
Net income available for common shareholders, basic and diluted	$	59,368	$	43,895	$	109,035	$	89,827
DENOMINATOR
Weighted average common shares outstanding, basic	79,202		77,474		78,826		77,160
Effect of dilutive securities:
Open forward contracts for share issuances	—		31		29		2
Weighted average common shares outstanding, diluted	79,202		77,505		78,855		77,162
EARNINGS PER COMMON SHARE, BASIC AND DILUTED:
Net income available for common shareholders	$	0.75	$	0.57	$	1.38	$	1.16

Federal Realty OP LP Earnings per Unit

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands, except per unit data)
NUMERATOR
Net income	$	64,467	$	48,059	$	119,195	97,798
Less: Preferred unit distributions	(2,008)		(2,011)		(4,018)		(4,021)
Less: Income from operations attributable to noncontrolling interests	(2,791)		(1,855)		(5,535)		(3,358)
Less: Earnings allocated to unvested units	(300)		(298)		(607)		(592)
Net income available for common unit holders, basic and diluted	$	59,368	$	43,895	$	109,035	$	89,827
DENOMINATOR
Weighted average common units outstanding, basic	79,202		77,474		78,826		77,160
Effect of dilutive securities:
Common unit issuances relating to open common share forward contracts	—		31		29		2
Weighted average common units outstanding, diluted	79,202		77,505		78,855		77,162
EARNINGS PER COMMON UNIT, BASIC AND DILUTED:
Net income available for common unit holders	$	0.75	$	0.57	$	1.38	$	1.16