Net Income Per Share

3 Months Ended

Mar. 31, 2024

The Company computes net income per share pursuant to the guidance in FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common stock and units, which contain rights to receive non-forfeitable dividends or dividend equivalents, as participating securities requiring the two-class method of computing net income per share. Diluted net income per share of common stock further considers the effect of potentially dilutive shares of common stock outstanding during the period, including the assumed vesting of RSUs with a market-based or service-based vesting condition, where dilutive. The OP Units held by non-controlling interests represent potentially dilutive securities as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis.

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share (dollars in thousands):


	Three months ended March 31,
(dollar amounts in thousands)	2024		2023
Numerator for basic and diluted earnings per share:
Net income	$	47,123	$	43,056
Less: net income attributable to non-controlling interests	(148)		(160)
Less: net income allocated to unvested RSAs and RSUs	(116)		(101)
Net income available for common stockholders: basic	46,859		42,795
Net income attributable to non-controlling interests	148		160
Net income available for common stockholders: diluted	$	47,007	$	42,955

Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding	167,290,702		144,406,747
Less: weighted average number of shares of unvested RSAs	—		(703)
Weighted average shares outstanding used in basic net income per share	167,290,702		144,406,044
Effects of dilutive securities: (1)
OP Units	553,847		553,847
Unvested RSAs and RSUs	545,285		482,013
Forward sales	464,767		558,103
Weighted average shares outstanding used in diluted net income per share	168,854,601		146,000,007

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(1)The three months ended March 31, 2024 and 2023, respectively, exclude the impact of 116,530 and 186,707 unvested RSUs and unsettled forward equity sales, as the effect would have been antidilutive.