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

12 Months Ended

Dec. 31, 2020

Kilroy Realty L.P. [Member]

Net Income Available To Common Unitholders [Line Items]

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

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 years ended December 31, 2020, 2019 and 2018:

	Year Ended December 31,
	2020		2019		2018
	(in thousands, except unit and per unit amounts)
Numerator:
Net income attributable to common unitholders	$	189,609	$	198,738	$	263,210
Allocation to participating securities (1)	(2,229)		(2,119)		(2,004)
Numerator for basic and diluted net income available to common unitholders	$	187,380	$	196,619	$	261,206
Denominator:
Basic weighted average vested units outstanding	115,095,506		105,223,975		102,025,276
Effect of dilutive securities	478,281		648,600		510,006
Diluted weighted average vested units and common unit equivalents outstanding	115,573,787		105,872,575		102,535,282
Basic earnings per unit:
Net income available to common unitholders per unit	$	1.63	$	1.87	$	2.56
Diluted earnings per unit:
Net income available to common unitholders per unit	$	1.62	$	1.86	$	2.55

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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, shares issuable under executed forward equity sale agreements, if any, and other securities are considered in our diluted earnings per share calculation for the years ended December 31, 2020, 2019 and 2018. Certain market measure-based RSUs are not included in dilutive securities as of December 31, 2020, 2019 and 2018 as not all performance metrics had been met by the end of the applicable reporting periods.

See Note 15 “Share-Based and Other Compensation” for additional information regarding the stock options and other share-based compensation.