1 Exhibit 11 FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS Statements Re: Computation of Per Share Earnings (In thousands, except per share data) Three Months Ended March 31, ----------------------- 1996 1995 ------ ------ Shares Outstanding For computation of primary net income per share - Weighted average 17,262 18,145 ------- ------- For computation of fully diluted net income per share - Weighted average, without regard to exercise of shares under share option, restricted stock or employee incentive plans 17,194 18,100 Weighted average of outstanding shares issued under restricted stock plan 64 42 Weighted average of shares issued under employee incentive plan 4 3 ------- ------- Adjusted shares outstanding 17,262 18,145 ======= ======= Net Income (loss): Net income (loss) applicable to shares of beneficial interest (used for computing primary and fully diluted net income per share): $ (877) $26,112(1) ======= ======= Net Income (loss) per share of beneficial interest -- primary and fully diluted: Income (loss) before cumulative effect of accounting change $(.05) $1.67 Cumulative effect of change in accounting for internal leasing costs -- (.24) ------- ------- Net Income (loss) $ (.05) $ 1.43 ======= ======= <FN> (1) 1995 Net Income has been restated to reflect the change in accounting method for internal leasing costs which was adopted retroactively to the first quarter of 1995.