Earnings Per Common Share or Unit

3 Months Ended

Mar. 31, 2017

NOTE 8. EARNINGS PER COMMON SHARE OR UNIT

We determine basic earnings per share or unit based on the weighted average number of shares of common stock or units outstanding during the period. We compute diluted earnings per share or unit based on the weighted average number of shares or units outstanding combined with the incremental weighted average effect from all outstanding potentially dilutive instruments.

The computation of our basic and diluted earnings per share and unit (in thousands, except per share and unit amounts) is as follows:

	Three Months Ended
	March 31,
Prologis, Inc.	2017		2016
Net earnings attributable to common stockholders – Basic	$	203,255	$	208,041
Net earnings attributable to redeemable limited partnership unitholders (1)		5,967		6,609
Adjusted net earnings attributable to common stockholders – Diluted	$	209,222	$	214,650

Weighted average common shares outstanding – Basic		528,721		524,205
Incremental weighted average effect on redemption of limited partnership units (1)		16,455		17,543
Incremental weighted average effect of equity awards		4,834		1,814
Weighted average common shares outstanding – Diluted (2)		550,010		543,562

Net earnings per share attributable to common stockholders:
Basic	$	0.38	$	0.40
Diluted	$	0.38	$	0.39

	Three Months Ended
	March 31,
Prologis, L.P.	2017			2016
Net earnings attributable to common unitholders	$	208,878		$	214,275
Net earnings attributable to Class A common unitholders		(3,331	)		(3,510	)
Net earnings attributable to common unitholders – Basic	$	205,547		$	210,765
Net earnings attributable to Class A common unitholders		3,331			3,510
Net earnings attributable to limited partnership unitholders		344			375
Adjusted net earnings attributable to common unitholders – Diluted	$	209,222		$	214,650

Weighted average common partnership units outstanding – Basic		534,685			531,070
Incremental weighted average effect on conversion of Class A Units		8,664			8,844
Incremental weighted average effect on redemption of limited partnership units into common stock of Prologis, Inc.		1,827			1,834
Incremental weighted average effect of equity awards of Prologis, Inc.		4,834			1,814
Weighted average common partnership units outstanding – Diluted (2)		550,010			543,562

Net earnings per unit attributable to common unitholders:
Basic	$	0.38		$	0.40
Diluted	$	0.38		$	0.39

(1)

Earnings allocated to the redeemable Operating Partnership units not held by the Parent has been included in the numerator and redeemable Operating Partnership units have been included in the denominator for the purpose of computing diluted earnings per share for all periods as the per share and unit amount is the same.

(2)	Our total potentially dilutive shares and units outstanding consisted of the following:

	Three Months Ended
	March 31,
	2017		2016
Total weighted average potentially dilutive limited partnership units		10,491		10,678
Total potentially dilutive stock awards		8,278		6,565
Total Prologis, L.P.		18,769		17,243
Limited partners in Prologis, L.P.		5,964		6,865
Total Prologis, Inc.		24,733		24,108