Earnings per share (Notes)

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

From time to time, we enter into forward equity sales agreements, which are discussed in Note 15 – “Stockholders’ equity” to our consolidated financial statements. We consider the potential dilution resulting from the forward equity sales agreements on the EPS calculations. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are delivered until settlement. The common shares issued upon the settlement of the forward equity sales agreements, weighted for the period these common shares were outstanding, are included in the denominator of basic EPS. To determine the dilution resulting from the forward equity sales agreements during the period of time prior to settlement, we calculate the number of weighted-average shares outstanding – diluted using the treasury stock method.

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 forward equity sales agreements are not participating securities and are therefore not included in the computation of EPS using the two-class method. Under the two-class method, we allocate net income (after amounts attributable to noncontrolling interests) to common stockholders and unvested restricted stock awards by using the weighted-average shares of each class outstanding for quarter-to-date and year-to-date periods independently, based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings.

The table reconciles the numerators and denominators of the basic and diluted EPS computations for the years ended December 31, 2021, 2020, and 2019 (in thousands, except per share amounts):


	Year Ended December 31,
	2021		2020		2019
Net income	$	654,282	$	827,171	$	404,047
Net income attributable to noncontrolling interests	(83,035)		(56,212)		(40,882)
Dividends on preferred stock	—		—		(3,204)
Preferred stock redemption charge	—		—		(2,580)
Net income attributable to unvested restricted stock awards	(7,848)		(10,168)		(6,386)
Numerator for basic and diluted EPS – net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	563,399	$	760,791	$	350,995

Denominator for basic EPS – weighted-average shares of common stock outstanding	146,921		126,106		112,204
Dilutive effect of forward equity sales agreements	539		384		320
Denominator for diluted EPS – weighted-average shares of common stock outstanding	147,460		126,490		112,524
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	$	3.83	$	6.03	$	3.13
Diluted	$	3.82	$	6.01	$	3.12