Earnings Per Share And Unit

9 Months Ended

Sep. 30, 2023

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 nine months ended September 30, 2023 and 2022, 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 1,829 stock options for the three and nine months ended September 30, 2023,

•conversions of downREIT operating partnership units for the three and nine months ended September 30, 2023,

•conversions of 5.417% Series 1 Cumulative Convertible Preferred Shares and units for the three and nine months ended September 30, 2023, and the nine months ended September 30, 2022.

•the issuance of 1.8 million shares and units issuable under common share forward sales agreements for the nine months ended September 30, 2022.

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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands, except per share data)
NUMERATOR
Net income	$	59,392	$	158,774	$	180,127	$	277,969
Less: Preferred share dividends	(2,008)		(2,008)		(6,024)		(6,026)
Less: Income from operations attributable to noncontrolling interests	(2,344)		(2,636)		(7,245)		(8,171)
Less: Earnings allocated to unvested shares	(323)		(535)		(974)		(935)



Net income available for common shareholders, basic	54,717		153,595		165,884		262,837
Add: Income attributable to downREIT operating partnership units	—		704		—		2,111
Add: Dividends on 5.417% Series 1 Cumulative Convertible Preferred Shares	—		133		—		—
Net income available for common shareholders, diluted	$	54,717	$	154,432	$	165,884	$	264,948
DENOMINATOR
Weighted average common shares outstanding, basic	81,274		80,765		81,210		79,480
Effect of dilutive securities:

Open forward contracts for share issuances	—		—		—		1
DownREIT operating partnership units	—		652		—		656
5.417% Series 1 Cumulative Convertible Preferred Shares	—		94		—		—
Weighted average common shares outstanding, diluted	81,274		81,511		81,210		80,137




EARNINGS PER COMMON SHARE, BASIC:
Net income available for common shareholders	$	0.67	$	1.90	$	2.04	$	3.31
EARNINGS PER COMMON SHARE, DILUTED:
Net income available for common shareholders	$	0.67	$	1.89	$	2.04	$	3.31

Federal Realty OP LP Earnings per Unit


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands, except per unit data)
NUMERATOR
Net income	$	59,392	$	158,774	$	180,127	$	277,969
Less: Preferred unit distributions	(2,008)		(2,008)		(6,024)		(6,026)
Less: Income from operations attributable to noncontrolling interests	(2,344)		(2,636)		(7,245)		(8,171)
Less: Earnings allocated to unvested units	(323)		(535)		(974)		(935)



Net income available for common unit holders, basic	54,717		153,595		165,884		262,837
Add: Income attributable to downREIT operating partnership units	—		704		—		2,111
Add: Dividends on 5.417% Series 1 Cumulative Convertible Preferred Units	—		133		—		—
Net income available for common unit holders, diluted	$	54,717	$	154,432	$	165,884	$	264,948
DENOMINATOR
Weighted average common units outstanding, basic	81,274		80,765		81,210		79,480
Effect of dilutive securities:

Common unit issuances relating to open common share forward contracts	—		—		—		1
DownREIT operating partnership units	—		652		—		656
5.417% Series 1 Cumulative Convertible Preferred Units	—		94		—		—
Weighted average common units outstanding, diluted	81,274		81,511		81,210		80,137




EARNINGS PER COMMON UNIT, BASIC:
Net income available for common unit holders	$	0.67	$	1.90	$	2.04	$	3.31
EARNINGS PER COMMON UNIT, DILUTED:
Net income available for common unit holders	$	0.67	$	1.89	$	2.04	$	3.31