Earning Per Share and Earnings Per Unit

Equity Residential

The following tables set forth the computation of net income per share – basic and net income per share – diluted for the Company (amounts in thousands except per share amounts):



	Quarter Ended March 31,
	2013			2012
Numerator for net income per share – basic and diluted (1):
(Loss) from continuing operations	$	(153,352	)	$	(13,426	)
Allocation to Noncontrolling Interests – Operating Partnership, net	6,345			752
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(25		)	(450		)
Preferred distributions	(1,036		)	(3,466		)
(Loss) from continuing operations available to Common Shares, net of Noncontrolling Interests	(148,068		)	(16,590		)
Discontinued operations, net of Noncontrolling Interests	1,164,718			158,423
Numerator for net income per share – basic and diluted (1)	$	1,016,650		$	141,833
Denominator for net income per share – basic and diluted (1):
Denominator for net income per share – basic and diluted (1)	337,532			298,805
Net income per share – basic	$	3.01		$	0.47
Net income per share – diluted	$	3.01		$	0.47
Net income per share – basic:
(Loss) from continuing operations available to Common Shares, net of Noncontrolling Interests	$	(0.439	)	$	(0.055	)
Discontinued operations, net of Noncontrolling Interests	3.451			0.530
Net income per share – basic	$	3.012		$	0.475
Net income per share – diluted (1):
(Loss) from continuing operations available to Common Shares	$	(0.439	)	$	(0.055	)
Discontinued operations, net	3.451			0.530
Net income per share – diluted	$	3.012		$	0.475


(1)	Potential common shares issuable from the assumed conversion of OP Units and the exercise/vesting of long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the quarters ended March 31, 2013 and 2012.

ERP Operating Limited Partnership

The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts):



	Quarter Ended March 31,
	2013			2012
Numerator for net income per Unit – basic and diluted (1):
(Loss) from continuing operations	$	(153,352	)	$	(13,426	)
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(25		)	(450		)
Allocation to Preference Units	(1,036		)	(3,466		)
(Loss) from continuing operations available to Units	(154,413		)	(17,342		)
Discontinued operations, net	1,214,386			165,593
Numerator for net income per Unit – basic and diluted (1)	$	1,059,973		$	148,251
Denominator for net income per Unit – basic and diluted (1):
Denominator for net income per Unit - basic and diluted (1)	351,255			312,011
Net income per Unit – basic	$	3.01		$	0.47
Net income per Unit – diluted	$	3.01		$	0.47
Net income per Unit – basic:
(Loss) from continuing operations available to Units	$	(0.439	)	$	(0.055	)
Discontinued operations, net	3.451			0.530
Net income per Unit – basic	$	3.012		$	0.475
Net income per Unit – diluted (1):
(Loss) from continuing operations available to Units	$	(0.439	)	$	(0.055	)
Discontinued operations, net	3.451			0.530
Net income per Unit – diluted	$	3.012		$	0.475


(1)	Potential Units issuable from the assumed exercise/vesting of the Company's long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per Unit calculation as the Operating Partnership had a loss from continuing operations for the quarters ended March 31, 2013 and 2012.