| Schedule of Earnings Per Share Basic and Diluted |
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) | Year Ended December 31, | | 2017 | | 2016 | | 2015 | Numerator: | | | | | | Income from continuing operations, net of income attributable to noncontrolling interests | $ | 239,824 |
| | $ | 526,686 |
| | $ | 550,240 |
| (Loss) income from discontinued operations, net of income attributable to noncontrolling interest | (12,408 | ) | | 380,231 |
| | 210,194 |
| Net income attributable to Vornado | 227,416 |
| | 906,917 |
| | 760,434 |
| Preferred share dividends | (65,399 | ) | | (75,903 | ) | | (80,578 | ) | Preferred share issuance costs (Series J redemption) | — |
| | (7,408 | ) | | — |
| Net income attributable to common shareholders | 162,017 |
| | 823,606 |
| | 679,856 |
| Earnings allocated to unvested participating securities | (46 | ) | | (96 | ) | | (81 | ) | Numerator for basic income per share | 161,971 |
| | 823,510 |
| | 679,775 |
| Impact of assumed conversions: | | | | | | Earnings allocated to Out-Performance Plan units | 230 |
| | 806 |
| | — |
| Convertible preferred share dividends | — |
| | 86 |
| | 91 |
| Numerator for diluted income per share | $ | 162,201 |
| | $ | 824,402 |
| | $ | 679,866 |
| | | | | | | Denominator: | | | | | | Denominator for basic income per share – weighted average shares | 189,526 |
| | 188,837 |
| | 188,353 |
| Effect of dilutive securities (1): | | | | | | Employee stock options and restricted share awards | 1,448 |
| | 1,064 |
| | 1,166 |
| Out-Performance Plan units | 284 |
| | 230 |
| | — |
| Convertible preferred shares | — |
| | 42 |
| | 45 |
| Denominator for diluted income per share – weighted average shares and assumed conversations | 191,258 |
| | 190,173 |
| | 189,564 |
| | | | | | | INCOME PER COMMON SHARE – BASIC: | | | | | | Income from continuing operations, net | $ | 0.92 |
| | $ | 2.35 |
| | $ | 2.49 |
| (Loss) income from discontinued operations, net | (0.07 | ) | | 2.01 |
| | 1.12 |
| Net income per common share | $ | 0.85 |
| | $ | 4.36 |
| | $ | 3.61 |
| | | | | | | INCOME PER COMMON SHARE – DILUTED: | | | | | | Income from continuing operations, net | $ | 0.91 |
| | $ | 2.34 |
| | $ | 2.48 |
| (Loss) income from discontinued operations, net | (0.06 | ) | | 2.00 |
| | 1.11 |
| Net income per common share | $ | 0.85 |
| | $ | 4.34 |
| | $ | 3.59 |
|
________________________________________ | | (1) | The effect of dilutive securities in the years ended December 31, 2017, 2016 and 2015 excludes an aggregate of 12,165, 12,022 and 11,744 weighted average common share equivalents, respectively, as their effect was anti-dilutive. |
|
| Schedule of Earnings Per Share Basic and Diluted |
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) | Year Ended December 31, | | 2017 | | 2016 | | 2015 | Numerator: | | | | | | Income from continuing operations, net of income attributable to noncontrolling interests | $ | 251,554 |
| | $ | 555,659 |
| | $ | 580,154 |
| (Loss) income from discontinued operations | (13,228 | ) | | 404,912 |
| | 223,511 |
| Net income attributable to Vornado Realty L.P. | 238,326 |
| | 960,571 |
| | 803,665 |
| Preferred unit distributions | (65,593 | ) | | (76,097 | ) | | (80,736 | ) | Preferred unit issuance costs (Series J redemption) | — |
| | (7,408 | ) | | — |
| Net income attributable to Class A unitholders | 172,733 |
| | 877,066 |
| | 722,929 |
| Earnings allocated to unvested participating securities | (3,232 | ) | | (4,177 | ) | | (4,092 | ) | Numerator for basic income per Class A unit | 169,501 |
| | 872,889 |
| | 718,837 |
| Impact of assumed conversions: | | | | | | Convertible preferred unit distributions | — |
| | 86 |
| | 92 |
| Numerator for diluted income per Class A unit | $ | 169,501 |
| | $ | 872,975 |
| | $ | 718,929 |
| | | | | | | Denominator: | | | | | | Denominator for basic income per Class A unit – weighted average units | 201,214 |
| | 200,350 |
| | 199,309 |
| Effect of dilutive securities (1): | | | | | | Vornado stock options and restricted unit awards | 2,086 |
| | 1,625 |
| | 1,804 |
| Convertible preferred units | — |
| | 42 |
| | 45 |
| Denominator for diluted income per Class A unit – weighted average units and assumed conversations | 203,300 |
| | 202,017 |
| | 201,158 |
| | | | | | | INCOME PER CLASS A UNIT – BASIC: | | | | | | Income from continuing operations, net | $ | 0.91 |
| | $ | 2.34 |
| | $ | 2.49 |
| (Loss) income from discontinued operations, net | (0.07 | ) | | 2.02 |
| | 1.12 |
| Net income per Class A unit | 0.84 |
| | 4.36 |
| | 3.61 |
| | | | | | | INCOME PER CLASS A UNIT – DILUTED: | | | | | | Income from continuing operations, net | $ | 0.90 |
| | $ | 2.32 |
| | $ | 2.46 |
| (Loss) income from discontinued operations, net | (0.07 | ) | | 2.00 |
| | 1.11 |
| Net income per Class A unit | $ | 0.83 |
| | $ | 4.32 |
| | $ | 3.57 |
|
________________________________________ | | (1) | The effect of dilutive securities in the years ended December 31, 2017, 2016 and 2015 excludes an aggregate of 124, 178 and 150 weighted average Class A unit equivalents, respectively, as their effect was anti-dilutive. |
|