Earnings Per Common Share

9 Months Ended

Sep. 30, 2019

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,
	2019		2018		2019		2018
Numerator for earnings per common share - basic:
Net income	$	23,896	$	32,777	$	476,870	$	257,486
Net income attributable to noncontrolling interest	(10)		(13)		(180)		(90)
Preferred distributions	(1,997)		(1,997)		(5,991)		(5,991)


Numerator for net income per share - basic	$	21,889	$	30,767	$	470,699	$	251,405

Numerator for earnings per common share - diluted:
Net income	$	23,896	$	32,777	$	476,870	$	257,486
Net income attributable to noncontrolling interests	(10)		(13)		(180)		(90)
Preferred distributions	(1,997)		(1,997)		—		(5,991)

Numerator for net income per share - diluted	$	21,889	$	30,767	$	476,690	$	251,405

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	122,140		121,845		122,075		122,504
RSUs(2)	1,240		894		1,123		795
LTIP Units(3)	184		112		177		90

Series D preferred shares; 6 1/2% cumulative convertible(4)	—		—		2,563		—
Weighted average number of common shares outstanding - diluted	123,564		122,851		125,938		123,389

Net income per common share attributable to Equity Commonwealth common shareholders:
Basic	$	0.18	$	0.25	$	3.86	$	2.05
Diluted	$	0.18	$	0.25	$	3.79	$	2.04

Anti-dilutive securities:
Effect of Series D preferred shares; 6 1/2% cumulative convertible(4)	2,563		2,363		—		2,363

Effect of LTIP Units	32		45		33		43
Effect of OP Units(5)	17		1		13		1

(1) The three months ended September 30, 2019 and 2018, includes 217 and 362 weighted-average, unvested, earned RSUs, respectively, and the nine months ended September 30, 2019 and 2018, includes 208 and 344 weighted-average, unvested, earned RSUs, respectively.

(2) Represents weighted-average number of common shares that would have been issued if the quarter-end was the measurement date for unvested, unearned RSUs.

(3) Represents the weighted-average dilutive shares issuable from LTIP Units if the quarter-end was the measurement date for the periods shown.

(4) The Series D preferred shares are excluded from the diluted earnings per share calculation for the three months ended September 30, 2019 and 2018 and for the nine months ended September 30, 2018 because including the Series D preferred shares would also require that the preferred distributions be added back to net income, resulting in anti-dilution.

(5) Beneficial interests in the Operating Trust.