EARNINGS PER COMMON SHARE

We determine “Basic earnings per share” using the two-class method as our unvested restricted share awards and units have non-forfeitable rights to dividends, and are therefore considered participating securities. We compute basic earnings per share by dividing net income attributable to the controlling interest less the allocation of undistributed earnings to unvested restricted share awards and units by the weighted-average number of common shares outstanding for the period.

We also determine “Diluted earnings per share” as the more dilutive of the two-class method or the treasury stock method with respect to the unvested restricted share awards. We further evaluate any other potentially dilutive securities at the end of the period and adjust the basic earnings per share calculation for the impact of those securities that are dilutive. Our diluted earnings per share calculation includes the dilutive impact of our share based awards with performance conditions prior to the grant date and awards with market conditions under the contingently issuable method. The dilutive earnings per share calculation also considers the Operating Partnership Units issued in connection with the 2017 acquisition, which were not dilutive for any of the periods presented.

The computations of basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands, except per share data):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Numerator:
Net income	$	2,813		$	79,662		$	17,275		$	113,862
Net loss attributable to noncontrolling interests in subsidiaries	20			12			56			32
Allocation of earnings to unvested restricted share awards	(107		)	(200		)	(291		)	(329		)
Adjusted net income attributable to the controlling interests	$	2,726		$	79,474		$	17,040		$	113,565
Denominator:
Weighted average shares outstanding – basic	77,291			73,994			76,292			71,348
Effect of dilutive securities:
Operating partnership units	12			—			8			—
Employee restricted share awards	120			139			115			172
Weighted average shares outstanding – diluted	77,423			74,133			76,415			71,520

Basic net income attributable to the controlling interests per common share	$	0.04		$	1.07		$	0.22		$	1.59
Diluted net income attributable to the controlling interests per common share	$	0.04		$	1.07		$	0.22		$	1.59