Earnings per share

We use income from continuing operations attributable to Alexandria’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to EPS. Pursuant to the presentation and disclosure literature on gains or losses on sales or disposals by REITs and EPS required by the SEC and the FASB, gains or losses on sales or disposals by a REIT that do not qualify as discontinued operations are classified below income from discontinued operations in the consolidated statements of income and included in the numerator for the computation of EPS for income from continuing operations.

We account for unvested restricted stock awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of EPS using the two-class method. Our 7% Series D cumulative convertible preferred stock (“Series D Convertible Preferred Stock”) is not a participating security, and is not included in the computation of EPS using the two-class method. Under the two-class method, we allocate net income after preferred stock dividends, preferred stock redemption charge, and amounts attributable to noncontrolling interests to common stockholders and unvested restricted stock awards based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings. Diluted EPS is computed using the weighted-average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities outstanding during the period. We had no dilutive securities outstanding during the three months ended March 31, 2016 and 2015.

The table below is a reconciliation of the numerators and denominators of the basic and diluted EPS computations for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts):



	Three Months Ended March 31,
	2016			2015
Income from continuing operations	$	9,966		$	25,051
Net income attributable to noncontrolling interests	(4,030		)	(492		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	5,936			24,559
Dividends on preferred stock	(5,907		)	(6,247		)
Preferred stock redemption charge	(3,046		)	—
Net income attributable to unvested restricted stock awards	(801		)	(483		)
(Loss) income from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted	(3,818		)	17,829
Loss from discontinued operations	—			(43		)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted	$	(3,818	)	$	17,786

Weighted-average shares of common stock outstanding – basic and diluted	72,584			71,366

EPS attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted:
Continuing operations	$	(0.05	)	$	0.25
Discontinued operations	—			—
EPS – basic and diluted	$	(0.05	)	$	0.25

For purposes of calculating diluted EPS, we did not assume conversion of our Series D Convertible Preferred Stock for the three months ended March 31, 2016 and 2015, since the impact was antidilutive to EPS attributable to Alexandria Real Estate Equities, Inc.’s common stockholders from continuing operations during those periods. Refer to “7.00% Series D Convertible Preferred Stock redemption” in Note 12 – “Stockholders’ Equity” for further discussion of the partial redemption of our Series D Convertible Preferred Stock.