EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2015

EARNINGS PER COMMON SHARE

Basic earnings per Common Share is computed by dividing net income attributable to Common Shareholders by the weighted average Common Shares outstanding. At September 30, 2015, the Company has unvested LTIP Units (Note 12) which provide for non-forfeitable rights to dividend equivalent payments. Accordingly, these unvested LTIP Units are considered participating securities and are included in the computation of basic earnings per Common Share pursuant to the two-class method.

Diluted earnings per Common Share reflects the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of restricted share unit ("Restricted Share Units") and share option awards issued under the Company's Share Incentive Plans (Note 12). The effect of the assumed conversion of 188 Series A Preferred OP Units into 25,067 Common Shares would be dilutive and therefore are included in the computation of diluted earnings per share for the three months ended September 30, 2014 and for each of the nine months ended September 30, 2015 and September 30, 2014. Conversely, the assumed conversion of these would be anti-dilutive and are therefore not included in the computation of diluted earnings per share for the three months ended September 30, 2015.

The effect of the conversion of Common OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.

The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in thousands, except per share amounts)	2015			2014			2015			2014
Numerator
Income from continuing operations	$	13,776		$	28,564		$	56,818		$	61,524
Less: net income attributable to participating securities	(196		)	(490		)	(810		)	(1,083		)
Income from continuing operations, net of income attributable to participating securities	13,580			28,074			56,008			60,441

Denominator
Weighted average shares for basic earnings per share	68,943			59,686			68,690			57,898
Effect of dilutive securities:
Employee Restricted Share Units and share options	14			18			24			26
Convertible Preferred OP Units	—			25			25			25
Denominator for diluted earnings per share	68,957			59,729			68,739			57,949

Basic and diluted earnings per Common Share from continuing operations attributable to Common Shareholders	$	0.20		$	0.47		$	0.82		$	1.04