Partners Equity of The Operating Partnership

3 Months Ended

Mar. 31, 2017

PARTNERS' EQUITY OF THE OPERATING PARTNERSHIP

11. 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 March 31,
	2017						2016
	Basic			Diluted			Basic			Diluted
Numerator
Income from continuing operations	$	21,271		$	21,271		$	46,310		$	46,310
Nonforfeitable dividends allocated to unvested restricted unitholders		(99	)		(99	)		(105	)		(105	)
Preferred unit dividends		(1,725	)		(1,725	)		(1,725	)		(1,725	)
Net income attributable to non-controlling interests		(5	)		(5	)		(2	)		(2	)
Net income attributable to common unitholders	$	19,442		$	19,442		$	44,478		$	44,478
Denominator
Weighted-average units outstanding		176,656,763			176,656,763			176,324,047			176,324,047
Contingent securities/Share based compensation		-			1,024,908			-			682,468
Total weighted-average units outstanding		176,656,763			177,681,671			176,324,047			177,006,515
Earnings per Common Partnership Unit:
Net income attributable to common unitholders	$	0.11		$	0.11		$	0.25		$	0.25

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-month periods ended March 31, 2017 and 2016, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units issued to the Parent Company in connection with awards 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

On March 1, 2017, the Operating Partnership declared a distribution of $0.16 per common partnership unit, totaling $28.3 million, which was paid on April 19, 2017 to unitholders of record as of April 5, 2017. In addition, the Operating Partnership declared distributions on its Series E-Linked Preferred Mirror Units to holders of record as of March 30, 2017. These units are entitled to a preferential return of 6.90% per annum on the $25.00 per unit liquidation preference. Distributions paid on April 17, 2017 to holders of Series E-Linked Preferred Mirror Units totaled $1.7 million.

On March 10, 2017, the Parent Company announced its intention to redeem all of its outstanding 4,000,000 Series E Preferred Shares on April 11, 2017. In connection with the redemption, on April 11, 2017, the Operating Partnership redeemed all of its Series E-Linked Preferred Mirror Units at a redemption price of $25.00 per unit with cash from existing cash balances on hand. See Note 15, “Subsequent Events.”