Earnings Per Common Share

9 Months Ended

Sep. 30, 2022

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,
	2022		2021		2022		2021
Numerator for earnings per common share - basic:
Net income (loss)	$	12,221	$	(2,814)	$	16,429	$	(14,792)
Net (income) loss attributable to noncontrolling interest	(31)		6		(41)		30
Preferred distributions	(1,997)		(1,997)		(5,991)		(5,991)


Numerator for net income (loss) per share - basic	$	10,193	$	(4,805)	$	10,397	$	(20,753)

Numerator for earnings per common share - diluted:
Net income (loss)	$	12,221	$	(2,814)	$	16,429	$	(14,792)
Net (income) loss attributable to noncontrolling interest	(31)		6		(41)		30
Preferred distributions	(1,997)		(1,997)		(5,991)		(5,991)

Numerator for net income (loss) per share - diluted	$	10,193	$	(4,805)	$	10,397	$	(20,753)

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	111,305		122,190		112,341		122,128
RSUs(2)	1,111		—		875		—
LTIP Units(3)	180		—		167		—


Weighted average number of common shares outstanding - diluted	112,596		122,190		113,383		122,128

Net income (loss) per common share attributable to Equity Commonwealth common shareholders:
Basic	$	0.09	$	(0.04)	$	0.09	$	(0.17)
Diluted	$	0.09	$	(0.04)	$	0.09	$	(0.17)

Anti-dilutive securities(4):
Effect of Series D preferred shares; 6.50% cumulative convertible	3,365		3,237		3,365		3,237
Effect of RSUs(2)	—		490		—		601
Effect of LTIP Units(3)	—		66		—		93
Effect of OP Units(5)	280		223		275		203

(1) The three months ended September 30, 2022 and 2021, include 86 and 262 weighted-average, unvested, earned RSUs, respectively, and the nine months ended September 30, 2022 and 2021, include 111 and 255 weighted-average, unvested, earned RSUs, respectively.

(2) Represents the 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 and nine months ended September 30, 2022 and 2021, because including the Series D preferred shares would also require that the preferred distributions be added back to net income (loss), resulting in anti-dilution. The RSUs and market-based LTIP Units are excluded from the diluted earnings per share calculation for the three and nine months ended September 30, 2021 because including them results in anti-dilution.

(5) Beneficial interests in the Operating Trust.