Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (amounts in thousands except per share amounts):


	Year Ended December 31,
	2019		2018		2017
Numerator for earnings per common share - basic:
Net income	$	492,866	$	272,908	$	29,666
Net income attributable to noncontrolling interest	(186)		(95)		(10)
Preferred distributions	(7,988)		(7,988)		(7,988)

Numerator for net income per share - basic	$	484,692	$	264,825	$	21,668

Numerator for earnings per common share - diluted:
Net income	$	492,866	$	272,908	$	29,666
Net income attributable to noncontrolling interest	(186)		(95)		—
Preferred distributions	—		(7,988)		(7,988)

Numerator for net income per share - diluted	$	492,680	$	264,825	$	21,678

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	122,091		122,314		124,125
RSUs(2)	1,138		956		912
LTIP Units(3)	174		115		92
Series D preferred shares; 6.50% cumulative convertible(4)	2,857		—		—
Weighted average number of common shares outstanding - diluted	126,260		123,385		125,129

Net income per common share attributable to Equity Commonwealth common shareholders:
Basic	$	3.97	$	2.17	$	0.17
Diluted	$	3.90	$	2.15	$	0.17

Anti-dilutive securities:
Effect of Series D preferred shares; 6.50% cumulative convertible(4)	—		2,563		2,363
Effect of LTIP Units	33		43		—
Effect of OP Units(5)	14		1		—

(1) The years ended December 31, 2019, 2018 and 2017, include 210, 308, and 33 weighted-average, unvested, earned RSUs, respectively.

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

(3) Represents the weighted-average dilutive shares issuable from LTIP Units if the year-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 years ended December 31, 2018 and 2017 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.