Earnings per share |
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Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | Earnings per share From time to time, we enter into forward equity sales agreements, which are discussed in Note 14 – “Stockholders’ Equity” to these unaudited consolidated financial statements. We considered the potential dilution resulting from the forward equity sales agreements on the EPS calculations. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are delivered until settlement. The common shares issued upon the settlement of the forward equity sales agreements, weighted for the period these common shares were outstanding, are included in the denominator of basic EPS. To determine the dilution resulting from the forward equity sales agreements during the period of time prior to settlement, we calculate the number of weighted-average shares outstanding – diluted using the treasury stock method. For the three months ended September 30, 2019, the effect on our weighted-average shares – diluted from the forward equity sales agreements was antidilutive due to the net loss attributable our common stockholders incurred during this period. For the nine months ended September 30, 2019, the effect on our weighted-average shares – diluted from the forward equity sales agreements was 172 thousand weighted-average incremental shares. For the three and nine months ended September 30, 2018, the effect on our weighted-average shares – diluted from the forward equity sales agreements entered into in January 2018 was 462 thousand and 363 thousand weighted-average incremental shares, respectively. To determine the dilution resulting from our 7.00% Series D cumulative convertible preferred stock (“Series D Convertible Preferred Stock”), we calculate the number of weighted-average shares outstanding – diluted using the if-converted method. For purposes of calculating diluted EPS, we did not assume conversion of our Series D Convertible Preferred Stock for the three and nine months ended September 30, 2019, and the nine months ended September 30, 2018, since the result was antidilutive to EPS attributable to Alexandria Real Estate Equities, Inc.’s common stockholders during each period. During the three months ended September 30, 2018, the effect of assumed conversion of our Series D Convertible Preferred Stock was dilutive to EPS attributable to Alexandria Real Estate Equities, Inc.’s common stockholders and aggregated 744 thousand weighted-average incremental shares. Refer to Note 14 – “Stockholders’ Equity” to these unaudited consolidated financial statements for additional information about our Series D Convertible Preferred Stock. 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 Series D Convertible Preferred Stock and forward equity sales agreements are not participating securities and are therefore not included in the computation of EPS using the two-class method. Under the two-class method, we allocate net income (after amounts attributable to noncontrolling interests, dividends on preferred stock, and preferred stock redemption charge) to common stockholders and unvested restricted stock awards by using the weighted-average shares of each class outstanding for quarter-to-date and year-to-date periods independently, based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings. The table below is a reconciliation of the numerators and denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share amounts):
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