Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 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):


	Year Ended December 31,
	2020		2019		2018
Numerator for earnings per common share - basic:
Net income	$	452,093	$	492,866	$	272,908
Net income attributable to noncontrolling interest	(799)		(186)		(95)
Preferred distributions	(7,988)		(7,988)		(7,988)

Numerator for net income per share - basic	$	443,306	$	484,692	$	264,825

Numerator for earnings per common share - diluted:
Net income	$	452,093	$	492,866	$	272,908
Net income attributable to noncontrolling interest	(799)		(186)		(95)
Preferred distributions	—		—		(7,988)

Numerator for net income per share - diluted	$	451,294	$	492,680	$	264,825

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	121,786		122,091		122,314
RSUs(2)	1,508		1,138		956
LTIP Units(3)	75		174		115
Series D preferred shares; 6.50% cumulative convertible(4)	3,237		2,857		—
Weighted average number of common shares outstanding - diluted	126,606		126,260		123,385

Net income per common share attributable to Equity Commonwealth common shareholders:
Basic	$	3.64	$	3.97	$	2.17
Diluted	$	3.56	$	3.90	$	2.15

Anti-dilutive securities:
Effect of Series D preferred shares; 6.50% cumulative convertible(4)	—		—		2,563
Effect of LTIP Units	119		33		43
Effect of OP Units(5)	102		14		1

(1) The years ended December 31, 2020, 2019 and 2018, include 157, 210, and 308 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 year ended December 31, 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.