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EXHIBIT 11
FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS AND
FIRST UNION MANAGEMENT, INC.
STATEMENTS RE: COMPUTATION OF PER SHARE EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1997 1996 1997 1996
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Shares Outstanding:
For computation of primary net
income per share -
Weighted average 27,337 17,168 23,522 17,168
Share equivalents - Options 419 423
- Restricted shares 211 56 213 69
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Adjusted shares outstanding 27,967 17,224 24,158 17,237
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For computation of fully diluted
net income per share -
Weighted average, without regard to,
exercise under share option plans,
or purchase of outstanding shares 27,337 17,168 23,515 17,160
Assumption of exercise under share
option plans 444 444
Weighted average of restricted
shares granted 225 56 225 69
Weighted average of shares issued
under employees incentive plan 7 8
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Adjusted shares outstanding 28,006 17,224 24,191 17,237
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Net Income:
Net income applicable to shares
of beneficial interest (used
for computing primary and
fully diluted net income per
share) $ 738 $ 1,044 $ 2,435 $ 1,140
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Net income per share of beneficial interest(1):
Primary and fully diluted $ .03 $ .06 $ .10 $ .07
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<FN>
(1) The proforma basic earnings per share for the three months and nine
months ended September 30, 1997 was $.03 and $.10 per share,
respectively, in accordance with SFAS 128 (earnings per share).