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 nine months ended September 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						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In thousands, except per share data)
NUMERATOR
Income from continuing operations	$	56,253		$	54,550		$	166,701		$	136,917
Less: Preferred share dividends	(136		)	(136		)	(406		)	(406		)
Less: Net income attributable to noncontrolling interests	(1,982		)	(2,103		)	(5,961		)	(6,161		)
Less: Earnings allocated to unvested shares	(170		)	(221		)	(534		)	(638		)
Income from continuing operations available for common shareholders	53,965			52,090			159,800			129,712
Gain on sale of real estate and change in control of interests, net	4,706			—			31,133			11,509
Net income available for common shareholders, basic and diluted	$	58,671		$	52,090		$	190,933		$	141,221
DENOMINATOR
Weighted average common shares outstanding—basic	71,319			69,006			70,626			68,637
Stock options	170			175			178			184
Weighted average common shares outstanding—diluted	71,489			69,181			70,804			68,821

EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.75		$	0.75		$	2.26		$	1.89
Gain on sale of real estate and change in control of interests, net	0.07			—			0.44			0.17
	$	0.82		$	0.75		$	2.70		$	2.06
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.75		$	0.75		$	2.26		$	1.88
Gain on sale of real estate and change in control of interests, net	0.07			—			0.44			0.17
	$	0.82		$	0.75		$	2.70		$	2.05
Income from continuing operations attributable to the Trust	$	54,271		$	52,447		$	160,740		$	130,756