Earnings Per Common Share

3 Months Ended

Mar. 31, 2013

Note 3 - Earnings Per Common Share

Basic earnings per share was determined by dividing net income allocable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. Net income is also allocated to the unvested restricted stock during the applicable period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. Unvested restricted stock is not allocated net losses and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders other than the holders of unvested restricted stock. The restricted stock units awarded under the Pay-for-Performance program described in Note 10 are excluded from the basic earnings per share calculation as these units are not participating securities.

Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company. For the three months ended March 31, 2013 and 2012, the diluted weighted average number of common shares includes 100,000 shares (of an aggregate of 200,000 shares) of common stock underlying the restricted stock units awarded on September 14, 2010 under the Pay-For-Performance Program. These 100,000 shares may vest upon satisfaction of the total stockholder return metric. The number of shares that would be issued pursuant to this metric is based on the current market price and dividends paid at the end of each quarterly period assuming the end of that quarterly period was the end of the vesting period. The remaining 100,000 shares of common stock underlying the restricted stock units awarded under the Pay-For-Performance Program are not included during the three months ended March 31, 2013 and 2012, as they did not meet the return on capital performance metric during such periods.

There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock during the three months ended March 31, 2013 and 2012.

The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (dollars in thousands, except per share amounts):

	Three Months Ended March 31,
	2013			2012
Numerator for basic and diluted earnings per share:
Income from continuing operations	$	3,449		$	2,962
Plus net loss (income) attributable to noncontrolling interests	1			(3		)
Less earnings allocated to unvested shares	(165		)	(135		)
Income from continuing operations available for common stockholders	3,285			2,824
Discontinued operations	—			264
Net income available for common stockholders, basic and diluted	$	3,285		$	3,088

Denominator for basic earnings per share:
- weighted average common shares	14,672			14,289
- weighted average unvested restricted stock shares	—			—
	14,672			14,289
Effect of diluted securities:
- restricted stock units awarded under Pay-for-Performance program	100			100

Denominator for diluted earnings per share
- weighted average shares	14,772			14,389

Earnings per common share, basic	$	.22		$	.22
Earnings per common share, diluted	$	.22		$	.21

Amounts attributable to One Liberty Properties, Inc. common stockholders, net of noncontrolling interests:
Income from continuing operations	$	3,450		$	2,959
Income from discontinued operations	—			264

Net income attributable to One Liberty Properties, Inc.	$	3,450		$	3,223

- Definition

The entire disclosure for earnings per share.

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