Net Income Available to Common Unitholders Per Unit of the Operating Partnership

The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders for the three and nine months ended September 30, 2015 and 2014:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands, except unit and per unit amounts)
Numerator:
Income from continuing operations	$	106,704		$	13,168		$	209,296		$	39,896
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries	(64		)	(59		)	(211		)	(188		)
Preferred distributions	(3,313		)	(3,313		)	(9,938		)	(9,938		)
Allocation to participating securities ⁽¹⁾	(367		)	(432		)	(1,200		)	(1,285		)
Numerator for basic and diluted income from continuing operations available to common unitholders	102,960			9,364			197,947			28,485
Income from discontinued operations ⁽²⁾	—			6,135			—			112,482
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership ⁽²⁾	—			—			—			(13		)
Numerator for basic and diluted net income available to common unitholders	$	102,960		$	15,499		$	197,947		$	140,954
Denominator:
Basic weighted average vested units outstanding	93,938,783			84,965,523			90,869,696			84,329,317
Effect of dilutive securities	488,724			1,949,133			516,249			2,097,589
Diluted weighted average vested units and common unit equivalents outstanding	94,427,507			86,914,656			91,385,945			86,426,906
Basic earnings per unit:
Income from continuing operations available to common unitholders per unit	$	1.10		$	0.11		$	2.18		$	0.34
Income from discontinued operations per common unit ⁽²⁾	—			0.07			—			1.33
Net income available to common unitholders per unit	$	1.10		$	0.18		$	2.18		$	1.67
Diluted earnings per unit:
Income from continuing operations available to common unitholders per unit	$	1.09		$	0.11		$	2.17		$	0.33
Income from discontinued operations per common unit ⁽²⁾	—			0.07			—			1.30
Net income available to common unitholders per unit	$	1.09		$	0.18		$	2.17		$	1.63

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(1)	Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs.


(2)	The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 1). As a result, properties classified as held for sale and/or disposed of subsequent to January 1, 2015 that do not represent a strategic shift are no longer presented as discontinued operations.

Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common units, including stock options, RSUs and other securities are considered in our diluted earnings per share calculation for the three and nine months ended September 30, 2015 and 2014, because we reported income from continuing operations attributable to common unitholders in the respective periods and the effect was dilutive. Certain market measure-based RSUs are not included in dilutive securities for the three and nine months ended September 30, 2015 and 2014 as not all performance metrics had been met by the end of the applicable reporting periods.

See Note 10 “Share-Based Compensation” for additional information regarding stock options and other share-based compensation.