| EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL |
16. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS’ EQUITY AND CAPITAL Earnings per share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per share: | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2024 | | 2023 | | 2024 | | 2023 | | | | (dollars and units in thousands, except per share amounts) | Net income | | $ | 100,950 | | $ | 103,073 | | | $ | 289,994 | | | $ | 299,298 | Net income attributable to noncontrolling interests in the Operating Partnership | | | (551) | | | (640) | | | | (1,616) | | | | (1,870) | Net loss attributable to noncontrolling interests in subsidiaries | | | 398 | | | 212 | | | | 910 | | | | 662 | Net income attributable to the Company's common shareholders | | $ | 100,797 | | $ | 102,645 | | | $ | 289,288 | | | $ | 298,090 | | | | | | | | | | | | | | | | Weighted average basic shares outstanding | | | 226,166 | | | 225,467 | | | | 225,941 | | | | 225,380 | Share options and restricted share units | | | 983 | | | 743 | | | | 864 | | | | 826 | Weighted average diluted shares outstanding (1) | | | 227,149 | | | 226,210 | | | | 226,805 | | | | 226,206 | | | | | | | | | | | | | | | | Basic earnings per share attributable to common shareholders | | $ | 0.45 | | $ | 0.46 | | | $ | 1.28 | | | $ | 1.32 | Diluted earnings per share attributable to common shareholders (2) | | $ | 0.44 | | $ | 0.45 | | | $ | 1.28 | | | $ | 1.32 |
Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and OP units owned by third parties have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would be anti-dilutive. Weighted average outstanding OP units owned by third parties were 1.2 million and 1.3 million for the three and nine months ended September 30, 2024, respectively, compared to 1.4 million for both the three and nine months ended September 30, 2023. Earnings per unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per unit: | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2024 | | 2023 | | 2024 | | 2023 | | | | (dollars and units in thousands, except per unit amounts) | Net income | | $ | 100,950 | | $ | 103,073 | | $ | 289,994 | | $ | 299,298 | Net loss attributable to noncontrolling interests in subsidiaries | | | 398 | | | 212 | | | 910 | | | 662 | Net income attributable to CubeSmart, L.P. | | $ | 101,348 | | $ | 103,285 | | $ | 290,904 | | $ | 299,960 | | | | | | | | | | | | | | Weighted average basic units outstanding (3) | | | 227,403 | | | 226,871 | | | 227,203 | | | 226,795 | Unit options and restricted share units | | | 983 | | | 743 | | | 864 | | | 826 | Weighted average diluted units outstanding (1) (3) | | | 228,386 | | | 227,614 | | | 228,067 | | | 227,621 | | | | | | | | | | | | | | Basic earnings per unit attributable to CubeSmart, L.P. | | $ | 0.45 | | $ | 0.46 | | $ | 1.28 | | $ | 1.32 | Diluted earnings per unit attributable to CubeSmart, L.P. (2) | | $ | 0.44 | | $ | 0.45 | | $ | 1.28 | | $ | 1.32 |
| (1) | For the three and nine months ended September 30, 2024, the Company declared cash dividends per common share/unit of $0.51 and $1.53, respectively. For the three and nine months ended September 30, 2023, the Company declared cash dividends per common share/unit of $0.49 and $1.47, respectively. |
| (2) | The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit were 0.7 million for both the three and nine months ended September 30, 2024 as well as both the three and nine months ended September 30, 2023. |
| (3) | Prior period amounts have been updated to conform to current year presentation. |
The OP Units owned by the General Partner and the OP Units owned by third parties have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership. OP Units owned by third parties may be redeemed for cash or, at the Company’s option, common shares of CubeSmart on a one-for-one basis. The following is a summary of OP Units outstanding: | | | | | | | | | As of September 30, | | | | 2024 | | 2023 | Outstanding OP Units owned by third parties | | | 1,232,205 | | 1,360,549 | Outstanding OP Units owned by the General Partner | | | 226,002,624 | | 224,859,021 |
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