Earnings Per Share

6 Months Ended

Jun. 30, 2016

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, 2016 and 2015, we had 0.2 million weighted average unvested shares outstanding, which are considered participating securities. For the six months ended June 30, 2016 and 2015, we had 0.2 million and 0.3 million weighted average unvested shares outstanding, respectively, 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 three and six months ended June 30, 2016 and 2015. 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, 2016						June 30, 2016
	2016			2015			2016			2015
	(In thousands, except per share data)
NUMERATOR
Income from continuing operations	$	57,111		$	34,164		$	110,448		$	82,367
Less: Preferred share dividends	(135		)	(135		)	(271		)	(271		)
Less: Net income attributable to noncontrolling interests	(1,871		)	(2,041		)	(3,979		)	(4,058		)
Less: Earnings allocated to unvested shares	(156		)	(207		)	(364		)	(417		)
Income from continuing operations available for common shareholders	54,949			31,781			105,834			77,621
Gain on change in control of interests and sale of real estate, net	701			11,509			26,427			11,509
Net income available for common shareholders, basic and diluted	$	55,650		$	43,290		$	132,261		$	89,130
DENOMINATOR
Weighted average common shares outstanding—basic	70,797			68,531			70,270			68,449
Stock options	177			182			181			189
Weighted average common shares outstanding—diluted	70,974			68,713			70,451			68,638

EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.78		$	0.46		$	1.50		$	1.13
Gain on change in control of interests and sale of real estate, net	0.01			0.17			0.38			0.17
	$	0.79		$	0.63		$	1.88		$	1.30
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.77		$	0.46		$	1.50		$	1.13
Gain on change in control of interests and sale of real estate, net	0.01			0.17			0.38			0.17
	$	0.78		$	0.63		$	1.88		$	1.30
Income from continuing operations attributable to the Trust	$	55,240		$	32,123		$	106,469		$	78,309