Net Income Available to Common Unitholders Per Unit of the Operating Partnership

The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders for the three months ended March 31, 2015 and 2014:



	Three Months Ended March 31,
	2015			2014
	(in thousands, except unit and per unit amounts)
Numerator:
Income from continuing operations	$	44,002		$	10,874
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries	(75		)	(65		)
Preferred distributions	(3,313		)	(3,313		)
Allocation to participating securities ⁽¹⁾	(415		)	(427		)
Numerator for basic and diluted income from continuing operations available to common unitholders	40,199			7,069
Income from discontinued operations ⁽²⁾	—			91,058
Numerator for basic and diluted net income available to common unitholders	$	40,199		$	98,127
Denominator:
Basic weighted average vested units outstanding	88,693,306			83,928,993
Effect of dilutive securities	537,590			2,015,532
Diluted weighted average vested units and common unit equivalents outstanding	89,230,896			85,944,525
Basic earnings per unit:
Income from continuing operations available to common unitholders per unit	$	0.45		$	0.08
Income from discontinued operations per common unit ⁽²⁾	0.00			1.09
Net income available to common unitholders per unit	$	0.45		$	1.17
Diluted earnings per unit:
Income from continuing operations available to common unitholders per unit	$	0.45		$	0.08
Income from discontinued operations per common unit ⁽²⁾	0.00			1.06
Net income available to common unitholders per unit	$	0.45		$	1.14

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(1)	Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs.


(2)	The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 1). As a result, properties classified as held for sale and/or disposed of subsequent to January 1, 2015 that do not represent a strategic shift are no longer presented as discontinued operations.

The impact of the contingently issuable units were considered in our diluted earnings per unit calculation for the three months ended March 31, 2015 and 2014 because the Operating Partnership reported income from continuing operations attributable to common unitholders in the respective periods and the effect was dilutive. As of March 31, 2015 contingently issuable shares consist of stock options and 182,610 market measure-based RSUs. As of March 31, 2014 contingently issuable shares consist of stock options and the impact of the 4.25% Exchangeable Notes prior to their maturity and settlement in November 2014. As of March 31, 2014 the 182,610 market measure-based RSUs were not included in dilutive securities since they were considered contingently issuable shares as not all the necessary performance conditions had been met. The 2015 Performance-Based RSUs and our other nonvested market measure-based RSUs are not included in dilutive securities as of March 31, 2015 and 2014 because they are not included until all the necessary performance conditions have been met.

See Note 10 “Share-Based Compensation” for additional information regarding the stock options and other share-based compensation.