Earnings Per Share

6 Months Ended

Jun. 30, 2015

We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating securities is calculated according to dividends declared and participation rights in undistributed earnings. For the three months ended June 30, 2015 and 2014, we had 0.2 million and 0.3 million weighted average unvested shares outstanding, respectively, which are considered participating securities. For the six months ended June 30, 2015 and 2014 we had 0.3 million weighted average unvested shares outstanding, which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares; the portion of earnings allocated to the unvested shares is reflected as “earnings allocated to unvested shares” in the reconciliation below.

In the dilutive EPS calculation, dilutive stock options were calculated using the treasury stock method consistent with prior periods. There were no anti-dilutive stock options for the six months ended June 30, 2015 and 2014. The conversions of downREIT operating partnership units and 5.417% Series 1 Cumulative Convertible Preferred Shares are anti-dilutive for all periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS.



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(In thousands, except per share data)
NUMERATOR
Net income	$	34,164		$	45,416		$	82,367		$	85,961
Less: Preferred share dividends	(135		)	(135		)	(271		)	(271		)
Less: Net income attributable to noncontrolling interests	(2,041		)	(1,871		)	(4,058		)	(3,663		)
Less: Earnings allocated to unvested shares	(207		)	(237		)	(417		)	(475		)
Income from continuing operations available for common shareholders	31,781			43,173			77,621			81,552
Gain on sale of real estate	11,509			—			11,509			—
Net income available for common shareholders, basic and diluted	$	43,290		$	43,173		$	89,130		$	81,552
DENOMINATOR
Weighted average common shares outstanding—basic	68,531			67,110			68,449			66,858
Effect of dilutive securities:
Stock options	182			167			189			163
Weighted average common shares outstanding—diluted	68,713			67,277			68,638			67,021
EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.46		$	0.64		$	1.13		$	1.22
Gain on sale of real estate	0.17			—			0.17			—
	$	0.63		$	0.64		$	1.30		$	1.22
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.46		$	0.64		$	1.13		$	1.22
Gain on sale of real estate	0.17			—			0.17			—
	$	0.63		$	0.64		$	1.30		$	1.22
Income from continuing operations attributable to the Trust	$	32,123		$	43,545		$	78,309		$	82,298