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 Nine Months Ended
September 30 September 30
------------ ------------
1996 1995 1996 1995
---- ---- ---- ----
Shares Outstanding
For computation of primary net
income per share -
Weighted average 17,224 18,163 17,237 18,160
====== ====== ====== ======
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 17,168 18,110 17,160 18,100
Weighted average of outstanding
shares issued under restricted
stock plan 56 53 69 52
Weighted average of shares issued
under employee incentive plan -- -- 8 8
------ ------ ------ ------
Adjusted shares outstanding 17,224 18,163 17,237 18,160
====== ====== ====== ======
Net income(1)
Net income applicable to shares of
beneficial interest (used for computing
primary and fully diluted net income per
share) $ 1,044 $ 325 $ 1,140 $ 27,749
======== ======== ======== ========
Net income per share of beneficial
interest -- primary and fully diluted:
Income before cumulative effect of
accounting change .06 .02 .07 1.76
Cumulative effect of change in accounting
for internal leasing costs -- -- -- (.24)
-------- -------- -------- --------
Net income $ .06 $ .02 $ .07 $ 1.52
======== ======== ======== ========
<FN>
(1) Net income for 1995 has been restated to reflect the change in accounting
method for internal leasing costs which was adopted retroactively to the
first quarter of 1995.
10