Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2020

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):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator for earnings per common share - basic:
Net income	$	370	$	23,896	$	453,763	$	476,870
Net income attributable to noncontrolling interest	(1)		(10)		(803)		(180)
Preferred distributions	(1,997)		(1,997)		(5,991)		(5,991)


Numerator for net (loss) income per share - basic	$	(1,628)	$	21,889	$	446,969	$	470,699

Numerator for earnings per common share - diluted:
Net income	$	370	$	23,896	$	453,763	$	476,870
Net income attributable to noncontrolling interests	(1)		(10)		(803)		(180)
Preferred distributions	(1,997)		(1,997)		—		—

Numerator for net (loss) income per share - diluted	$	(1,628)	$	21,889	$	452,960	$	476,690

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	121,673		122,140		121,824		122,075
RSUs(2)	—		1,240		1,525		1,123
LTIP Units(3)	—		184		76		177

Series D preferred shares; 6.50% cumulative convertible(4)	—		—		2,857		2,563
Weighted average number of common shares outstanding - diluted	121,673		123,564		126,282		125,938

Net (loss) income per common share attributable to Equity Commonwealth common shareholders:
Basic	$	(0.01)	$	0.18	$	3.67	$	3.86
Diluted	$	(0.01)	$	0.18	$	3.59	$	3.79

Anti-dilutive securities:
Effect of Series D preferred shares; 6.50% cumulative convertible(4)	2,857		2,563		—		—
Effect of RSUs(2)	1,525		—		—		—
Effect of LTIP Units	206		32		115		33
Effect of OP Units(5)	113		17		99		13

(1) The three months ended September 30, 2020 and 2019, include 150 and 217 weighted-average, unvested, earned RSUs, respectively, and the nine months ended September 30, 2020 and 2019, include 159 and 208 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, 2020 and 2019, 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.