Earnings per share

9 Months Ended

Sep. 30, 2015

We use income from continuing operations attributable to Alexandria’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to EPS. Pursuant to the presentation and disclosure literature on gains or losses on sales or disposals by REITs and EPS required by the SEC and the FASB, gains or losses on sales or disposals by a REIT that do not qualify as discontinued operations are classified below income from discontinued operations in the consolidated statements of income and included in the numerator for the computation of EPS for income from continuing operations.

We account for unvested restricted stock awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of EPS using the two-class method. Our 7% series D cumulative convertible preferred stock (“Series D Convertible Preferred Stock”) is not a participating security, and is not included in the computation of EPS using the two-class method. Under the two-class method, we allocate net income after preferred stock dividends, preferred stock redemption charge, and amounts attributable to noncontrolling interests to common stockholders and unvested restricted stock awards based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings. Diluted EPS is computed using the weighted-average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities. We had no dilutive securities outstanding during the three and nine months ended September 30, 2015 and 2014.

The table below is a reconciliation of the numerators and denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share amounts):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Income from continuing operations	$	39,699		$	36,115		$	103,180		$	112,492
Gain on sales of real estate – land parcels	—			8			—			805
Dividends on preferred stock	(6,247		)	(6,471		)	(18,740		)	(19,414		)
Net income attributable to noncontrolling interests	(170		)	(1,340		)	(925		)	(3,842		)
Net income attributable to unvested restricted stock awards	(623		)	(506		)	(1,736		)	(1,285		)
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted	32,659			27,806			81,779			88,756
Loss from discontinued operations	—			(180		)	(43		)	(489		)
Net income attributable to Alexandria’s common stockholders – basic and diluted	$	32,659		$	27,626		$	81,736		$	88,267

Weighted-average shares of common stock outstanding – basic and diluted	71,500			71,195			71,426			71,121

EPS attributable to Alexandria’s common stockholders – basic and diluted:
Continuing operations	$	0.46		$	0.39		$	1.14		$	1.25
Discontinued operations	—			—			—			(0.01		)
EPS – basic and diluted	$	0.46		$	0.39		$	1.14		$	1.24