Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 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):


	Year Ended December 31,
	2022		2021		2020
Numerator for earnings per common share - basic:
Net income (loss)	$	37,357	$	(16,429)	$	452,093
Net (income) loss attributable to noncontrolling interest	(94)		33		(799)
Preferred distributions	(7,988)		(7,988)		(7,988)

Numerator for net income (loss) per share - basic	$	29,275	$	(24,384)	$	443,306

Numerator for earnings per common share - diluted:
Net income (loss)	$	37,357	$	(16,429)	$	452,093
Net (income) loss attributable to noncontrolling interest	(94)		33		(799)
Preferred distributions	(7,988)		(7,988)		—

Numerator for net income (loss) per share - diluted	$	29,275	$	(24,384)	$	451,294

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	111,674		121,411		121,786
RSUs(2)	970		—		1,508
LTIP Units(3)	181		—		75
Series D preferred shares; 6.50% cumulative convertible	—		—		3,237
Weighted average number of common shares outstanding - diluted	112,825		121,411		126,606

Net income (loss) per common share attributable to Equity Commonwealth common shareholders:
Basic	$	0.26	$	(0.20)	$	3.64
Diluted	$	0.26	$	(0.20)	$	3.56

Anti-dilutive securities(4):
Effect of Series D preferred shares; 6.50% cumulative convertible	3,365		3,237		—
Effect of RSUs(2)	—		549		—
Effect of LTIP Units	—		84		119
Effect of OP Units(5)	276		208		102

(1) The years ended December 31, 2022, 2021 and 2020, include 105, 256, and 157 weighted-average, unvested, earned RSUs, respectively.

(2) Represents the 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, 2022 and 2021 because including the Series D preferred shares would also require that the preferred distributions be added back to net income, resulting in anti-dilution. The RSUs and market-based LTIP Units are excluded from the

diluted earnings per share calculation for the year ended December 31, 2021, because including them results in anti-dilution.

(5) Beneficial interests in the Operating Trust.