| Earnings Per Common Share |
Earnings Per Common Share
The following table sets forth the computation of basic and diluted earnings per share (amounts in thousands except per share amounts): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | Numerator for earnings per common share - basic and diluted: | |
| | |
| | | | | Net income | $ | 86,388 |
| | $ | 30,466 |
| | $ | 220,634 |
| | $ | 56,712 |
| Preferred distributions | (1,997 | ) | | (6,981 | ) | | (15,959 | ) | | (20,943 | ) | Excess fair value of consideration paid over carrying value of preferred shares | — |
| | — |
| | (9,609 | ) | | — |
| Numerator for net income per share | $ | 84,391 |
| | $ | 23,485 |
| | $ | 195,066 |
|
| $ | 35,769 |
| | | | | | | | | Denominator for earnings per common share - basic and diluted: | | | | | | | | Weighted average number of common shares outstanding - basic | 125,533 |
| | 128,739 |
| | 125,627 |
| | 129,386 |
| Weighted average number of common shares outstanding - diluted(1) | 126,568 |
| | 129,878 |
| | 127,009 |
| | 130,093 |
| | | | | | | | | Net income per common share attributable to Equity Commonwealth common shareholders: | | | | | | | | Basic | $ | 0.67 |
| | $ | 0.18 |
| | $ | 1.55 |
| | $ | 0.28 |
| Diluted | $ | 0.67 |
| | $ | 0.18 |
| | $ | 1.54 |
| | $ | 0.27 |
| | | | | | | | | Anti-dilutive securities: | | | | | | | | Effect of Series D preferred shares; 6 1/2% cumulative convertible(2) | 2,363 |
| | 2,363 |
| | 2,363 |
| | 2,363 |
|
| | (1) | As of September 30, 2016, we had granted RSUs to certain employees, officers, and the chairman of the Board of Trustees. The RSUs contain both service and market-based vesting components. None of the RSUs have vested. If the market-based vesting component was measured as of September 30, 2016, and 2015, 1,035 and 1,139 common shares would be issued to the RSU holders, respectively. Using a weighted average basis, 1,035 and 1,139 common shares are reflected in diluted earnings per share for the three months ended September 30, 2016 and 2015, respectively and 1,382 and 707 common shares are reflected in diluted earnings per share for the nine months ended September 30, 2016 and 2015, respectively. |
| | (2) | The Series D preferred shares are excluded from the diluted earnings per share calculation because including the Series D preferred shares would also require that the preferred distributions be added back to net income, resulting in anti-dilution during the periods presented. |
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