BENEFICIARIES’ EQUITY OF THE PARENT COMPANY

Earnings per Share (EPS)

The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):



	Three-month periods ended March 31,
	2012						2011
	Basic			Diluted			Basic			Diluted
Numerator
Loss from continuing operations	$	(5,889	)	$	(5,889	)	$	(1,567	)	$	(1,567	)
Net income from continuing operations attributable to non-controlling interests	145			145			73			73
Amount allocable to unvested restricted shareholders	(96		)	(96		)	(142		)	(142		)
Preferred share dividends	(1,998		)	(1,998		)	(1,998		)	(1,998		)
Loss from continuing operations available to common shareholders	(7,838		)	(7,838		)	(3,634		)	(3,634		)
Income from discontinued operations	15,225			15,225			1,077			1,077
Discontinued operations attributable to non-controlling interests	(279		)	(279		)	(22		)	(22		)
Discontinued operations attributable to common shareholders	14,946			14,946			1,055			1,055
Net income (loss) attributable to common shareholders	$	7,108		$	7,108		$	(2,579	)	$	(2,579	)
Denominator
Weighted-average shares outstanding	142,820,955			142,820,955			134,577,421			134,577,421
Earnings per Common Share:
Loss from continuing operations attributable to common shareholders	$	(0.05	)	$	(0.05	)	$	(0.03	)	$	(0.03	)
Discontinued operations attributable to common shareholders	0.10			0.10			0.01			0.01
Net income (loss) attributable to common shareholders	$	0.05		$	0.05		$	(0.02	)	$	(0.02	)

Redeemable common limited partnership units totaling 2,657,721 and 9,902,752 as of March 31, 2012 and 2011, respectively, were excluded from the diluted earnings per share computations because their effect would have been anti-dilutive.

The contingent securities/share based compensation impact is calculated using the treasury stock method and relates to employee awards settled in shares of the Parent Company. The effect of these securities is anti-dilutive for periods that the Parent Company incurs a net loss from continuing operations available to common shareholders and therefore is excluded from the dilutive earnings per share calculation in such periods.

Unvested restricted shares are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the three months ended March 31, 2012 and 2011, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted shares issued to the Company’s executives and other employees under the 1997 Plan.

Common and Preferred Shares

On March 20, 2012, the Parent Company declared a distribution of $0.15 per common share, totaling $21.6 million, which was paid on April 19, 2012 to shareholders of record as of April 5, 2012. On March 20, 2012, the Parent Company declared distributions on its Series C Preferred Shares and Series D Preferred Shares to holders of record as of March 30, 2012. These shares are entitled to a preferential return of 7.50% and 7.375%, respectively. Distributions paid on April 16, 2012 to holders of Series C Preferred Shares and Series D Preferred Shares totaled $0.9 million and $1.1 million, respectively.

In March 2010, the Parent Company commenced a continuous equity offering program (the “Offering Program”), under which the Parent Company may sell up to an aggregate amount of 15,000,000 common shares until March 10, 2013. The Company may sell common shares in amounts and at times to be determined by the Parent Company. Actual sales will depend on a variety of factors as determined by the Company, including market conditions, the trading price of its common shares and determinations by the Parent Company of the appropriate sources of funding. In conjunction with the Offering Program, the Parent Company engages sales agents who receive compensation, in aggregate, of up to 2% of the gross sales price per share sold. During the three-month period ended March 31, 2012, the Parent Company did not sell any shares under the Offering Program. During the three-month period ended March 31, 2011, the Parent Company sold 188,400 shares under this program at an average sales price of $12.23 per share resulting in net proceeds of $2.2 million. The Parent Company contributed the net proceeds from the sale of its shares to the Operating Partnership in exchange for the issuance of 188,400 common partnership units to the Parent Company. The Operating Partnership used the net proceeds from the sales contributed by the Parent Company to repay balances on its Credit Facility and for general corporate purposes. From the inception of the Offering Program in March 2010 through March 31, 2012, the Parent Company had sold 6,421,553 shares under this program at an average sales price of $12.50 per share, resulting in 8,578,447 remaining shares available for sale.

Common Share Repurchases

The Parent Company maintains a share repurchase program pursuant to which the Parent Company is authorized to repurchase its common shares from time to time. The Parent Company’s Board of Trustees initially authorized this program in 1998 and has periodically replenished capacity under the program. On May 2, 2006 the Board of Trustees restored capacity to 3.5 million common shares.

The Parent Company did not repurchase any shares during the three-month period ended March 31, 2012. As of March 31, 2012, the Parent Company may purchase an additional 0.5 million shares under the program.

Repurchases may be made from time to time in the open market or in privately negotiated transactions, subject to market conditions and compliance with legal requirements. The share repurchase program does not contain any time limitation and does not obligate the Parent Company to repurchase any shares. The Parent Company may discontinue the program at any time.