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-month periods ended September 30,
	2014						2013
	Basic			Diluted			Basic			Diluted
Numerator
Income from continuing operations	$	8,885		$	8,885		$	11,147		$	11,147
Nonforfeitable dividends allocated to unvested restricted unitholders	(82		)	(82		)	(85		)	(85		)
Preferred unit dividends	(1,725		)	(1,725		)	(1,725		)	(1,725		)
Net income attributable to non-controlling interests	(24		)	(24		)	—			—
Income from continuing operations available to common unitholders	7,054			7,054			9,337			9,337
Discontinued operations attributable to common unitholders	(3		)	(3		)	(59		)	(59		)
Net income attributable to common unitholders	$	7,051		$	7,051		$	9,278		$	9,278
Denominator
Weighted-average units outstanding	173,341,782			173,341,782			158,467,087			158,467,087
Contingent securities/Share based compensation	—			1,587,148			—			1,288,734
Total weighted-average units outstanding	173,341,782			174,928,930			158,467,087			159,755,821
Earnings per Common Partnership Unit:
Income from continuing operations attributable to common unitholders	$	0.04		$	0.04		$	0.06		$	0.06
Discontinued operations attributable to common unitholders	—			—			—			—
Net income attributable to common unitholders	$	0.04		$	0.04		$	0.06		$	0.06




	Nine-month periods ended September 30,
	2014						2013
	Basic			Diluted			Basic			Diluted
Numerator
Income from continuing operations	$	7,893		$	7,893		$	18,212		$	18,212
Amount allocable to unvested restricted unitholders	(268		)	(268		)	(278		)	(278		)
Preferred unit dividends	(5,175		)	(5,175		)	(5,175		)	(5,175		)
Net income attributable to non-controlling interests	(12		)	(12		)	—			—
Income from continuing operations available to common unitholders	2,438			2,438			12,759			12,759
Discontinued operations attributable to common unitholders	918			918			3,975			3,975
Net income attributable to common unitholders	$	3,356		$	3,356		$	16,734		$	16,734
Denominator
Weighted-average units outstanding	163,620,963			163,620,963			153,731,070			153,731,070
Contingent securities/Share based compensation	—			1,487,015			—			1,209,384
Total weighted-average units outstanding	163,620,963			165,107,978			153,731,070			154,940,454
Earnings per Common Partnership Unit:
Income from continuing operations attributable to common unitholders	$	0.01		$	0.01		$	0.08		$	0.08
Discontinued operations attributable to common unitholders	0.01			0.01			0.03			0.03
Net income attributable to common unitholders	$	0.02		$	0.02		$	0.11		$	0.11

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 and nine-month periods ended September 30, 2014 and 2013, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units issued to the Parent Company’s executives and other employees under the Parent Company's shareholder-approved long-term incentive plan.

Common Partnership Units and Preferred Mirror Units

The common partnership units not held by the Parent Company have the same economic characteristics as the Parent Company's common shares and share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common partnership units not held by the Parent Company are redeemable at any time at the option of the holder, and the Parent Company, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with common shares of the Parent Company. Similarly, the Series E-Linked Preferred Mirror Units of the Operating Partnership have the same economic characteristics as the Series E Preferred Shares of the Parent Company. Whenever the Parent Company issues common shares or preferred shares, it contributes the net proceeds to the Operating Partnership in exchange for, as applicable, an equal number of common partnership units or preferred units that mirror the economic terms of the preferred shares.

On September 10, 2014, the Operating Partnership declared a distribution of $0.15 per common partnership unit, totaling $27.2 million, which was paid on October 20, 2014 to unitholders of record as of October 6, 2014. On September 10, 2014, the Operating Partnership declared distributions on its Series E-Linked Preferred Mirror Units to holders of record as of September 30, 2014. These units are entitled to a preferential return of 6.90% per annum on the $25.00 per unit liquidation preference. Distributions paid on October 15, 2014 to holders of Series E-Linked Preferred Mirror Units totaled $1.7 million.

Common Unit Repurchases

The Parent Company did not repurchase any shares under its share repurchase program in either of the nine-month periods ended September 30, 2014 and 2013 and accordingly, during the nine-month periods ended September 30, 2014 and 2013, the Operating Partnership did not repurchase any units in connection with the Parent Company’s share repurchase program.