PARTNERS’ EQUITY OF THE OPERATING PARTNERSHIP

Earnings per Common Partnership Unit

The following tables detail the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):



	Three months ended March 31,
	2013						2012
	Basic			Diluted			Basic			Diluted
Numerator
Loss from continuing operations	$	(2,003	)	$	(2,003	)	$	(7,859	)	$	(7,859	)
Amount allocable to unvested restricted unitholders	(108		)	(108		)	(96		)	(96		)
Preferred unit dividends	(1,725		)	(1,725		)	(1,998		)	(1,998		)
Loss from continuing operations available to common unitholders	(3,836		)	(3,836		)	(9,953		)	(9,953		)
Discontinued operations attributable to common unitholders	5,922			5,922			17,195			17,195
Net income attributable to common unitholders	$	2,086		$	2,086		$	7,242		$	7,242
Denominator
Weighted-average units outstanding	145,451,396			145,451,396			145,485,422			145,485,422
Earnings per Common Partnership Unit:
Loss from continuing operations attributable to common unitholders	$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.07	)
Discontinued operations attributable to common unitholders	0.04			0.04			0.12			0.12
Net income attributable to common unitholders	$	0.01		$	0.01		$	0.05		$	0.05

Unvested restricted units 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, 2013 and 2012, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units.

Common Partnership Units and Preferred Mirror Units

On March 13, 2013, the Operating Partnership declared a distribution of $0.15 per common partnership unit, totaling $21.7 million, which was paid on April 19, 2013 to unitholders of record as of April 5, 2013.

On March 13, 2013, the Operating Partnership declared distributions on its Series E-Linked Preferred Mirror Units to holders of record as of March 30, 2013. These units are entitled to a preferential return of 6.90% per annum on the $25.00 per share liquidation preference. Distributions paid on April 15, 2013 to holders of Series E-Linked Preferred Mirror Units totaled $1.7 million.

From January 1, 2013 through expiration of the Offering Program on March 10, 2013, the Parent Company did not sell any shares under the Offering Program and, accordingly, the Operating Partnership did not issue any common partnership units to the Parent Company in connection with the Offering Program during this time. From the inception of the Offering Program in March 2010 through expiration of the Offering Program in March 2013, the Parent Company sold an aggregate of 6,421,553 common shares under the Offering Program at an average sales price of $12.50 per share. The Operating Partnership used the net proceeds contributed to it by the Parent Company to repay balances on credit facilities and for general corporate purposes.

Common Unit Repurchases

The Parent Company did not repurchase any shares under its share repurchase program during the three-month period ended March 31, 2013 and accordingly, during the three-month period ended March 31, 2013, the Operating Partnership did not repurchase any units in connection with the Parent Company’s share repurchase program.