Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2022

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,
	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.