Earnings Per Share

9 Months Ended

Sep. 30, 2021

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 and nine months ended September 30, 2021, we had 0.3 million and for the three and nine months ended September 30, 2020, we had 0.2 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.

The following potentially issuable shares were excluded from the diluted EPS calculation because their impact is anti-dilutive:

•exercise of 682 stock options for both the three and nine months ended September 30, 2021 and 2020,

•conversions of downREIT operating partnership units and 5.417% Series 1 Cumulative Convertible Preferred Shares for both the three and nine months ended September 30, 2021 and 2020, and

•the issuance of 0.9 million and 1.7 million shares issuable under forward sales agreements for the three and nine months ended September 30, 2021, respectively.

Additionally, 10,441 unvested restricted stock units are excluded from the diluted EPS calculation as the market based performance criteria in the awards has not yet been achieved.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands, except per share data)
NUMERATOR
Net income (loss)	$	54,541	$	(33,623)	$	152,339	33,677
Less: Preferred share dividends	(2,010)		(2,010)		(6,031)		(6,031)
Less: (Income) loss from operations attributable to noncontrolling interests	(2,419)		5,334		(5,777)		3,304
Less: Earnings allocated to unvested shares	(309)		(249)		(901)		(745)



Net income (loss) available for common shareholders, basic and diluted	$	49,803	$	(30,548)	$	139,630	$	30,205
DENOMINATOR
Weighted average common shares outstanding, basic	77,485		75,404		77,269		75,386
Effect of dilutive securities:

Open forward contracts for share issuances	90		—		18		—
Weighted average common shares outstanding, diluted	77,575		75,404		77,287		75,386

EARNINGS PER COMMON SHARE, BASIC:
Net income (loss) available for common shareholders	$	0.64	$	(0.41)	$	1.81	$	0.40
EARNINGS PER COMMON SHARE, DILUTED:
Net income (loss) available for common shareholders	$	0.64	$	(0.41)	$	1.81	$	0.40