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 months ended March 31, 2016 and 2015:



	Three Months Ended March 31,
	2016			2015
	(in thousands, except unit and per unit amounts)
Numerator:
Net income attributable to Kilroy Realty, L.P.	$	177,833		$	43,927
Preferred distributions	(3,313		)	(3,313		)
Allocation to participating securities ⁽¹⁾	(395		)	(415		)
Numerator for basic and diluted net income available to common unitholders	$	174,125		$	40,199
Denominator:
Basic weighted average vested units outstanding	94,188,520			88,693,306
Effect of dilutive securities	510,021			537,590
Diluted weighted average vested units and common unit equivalents outstanding	94,698,541			89,230,896
Basic earnings per unit:
Net income available to common unitholders per unit	$	1.85		$	0.45
Diluted earnings per unit:
Net income available to common unitholders per unit	$	1.84		$	0.45

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

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 months ended March 31, 2016 and 2015. Certain market measure-based RSUs are not included in dilutive securities for the three months ended March 31, 2016 and 2015, 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 share-based compensation.