EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2011

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. Diluted earnings per Common Share reflect the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of awards issuable under the Company's Share Incentive Plans. 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)	2011		2010		2011		2010
Numerator
Income from continuing operations attributable to Common Shareholders	$	3,973	$	4,711	$	16,662	$	22,032
Effect of dilutive securities:
Preferred OP Unit distributions	—		—		14		14
Numerator for diluted earnings per Common Share	$	3,973	$	4,711	$	16,676	$	22,046

Denominator
Weighted average shares for basic earnings per share	40,340		40,169		40,330		40,096
Effect of dilutive securities:
Employee share options	289		262		268		214
Convertible Preferred OP Units	—		—		25		25
Dilutive potential Common Shares	289		262		293		239
Denominator for diluted earnings per share	40,629		40,431		40,623		40,335
Basic earnings per Common Share from continuing operations attributable to Common Shareholders	$	0.10	$	0.12	$	0.41	$	0.55
Diluted earnings per Common Share from continuing operations attributable to Common Shareholders	$	0.10	$	0.12	$	0.41	$	0.55

The weighted average shares used in the computation of diluted earnings per share include unvested restricted Common Shares (“Restricted Shares”) and LTIP Units (Note 13) that are entitled to receive dividend equivalent payments. The effect of the conversion of Common OP Units is not reflected in the above table, 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 subsidiaries 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 conversion of the convertible notes payable (Note 9) is not reflected in the table above as such conversion, based on the current market price of the Common Shares, would be settled with cash.

The effect of the assumed conversion of 188 Series A Preferred OP Units into 25,067 Common Shares would be dilutive for the nine months ended September 30, 2011 and 2010 and are accordingly included in the table above. They would be anti-dilutive for the three months ended September 30, 2011 and 2010 and, as such, are not included in the table above.