NOTE 9. 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 was as follows (in thousands, except per share and unit amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Prologis, Inc.	2018		2017		2018		2017
Net earnings attributable to common stockholders – Basic	$	346,345	$	876,218	$	1,046,858	$	1,346,416
Net earnings attributable to exchangeable limited partnership units (1)		10,593		24,362		31,502		38,127
Adjusted net earnings attributable to common stockholders – Diluted	$	356,938	$	900,580	$	1,078,360	$	1,384,543

Weighted average common shares outstanding – Basic		574,520		531,288		546,612		530,036
Incremental weighted average effect on exchange of limited partnership units (1)		18,153		15,641		17,097		16,150
Incremental weighted average effect of equity awards		4,974		7,234		4,890		5,432
Weighted average common shares outstanding – Diluted (2)		597,647		554,163		568,599		551,618

Net earnings per share attributable to common stockholders:
Basic	$	0.60	$	1.65	$	1.92	$	2.54
Diluted	$	0.60	$	1.63	$	1.90	$	2.51

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Prologis, L.P.	2018			2017			2018			2017
Net earnings attributable to common unitholders	$	356,765		$	900,331		$	1,077,823		$	1,383,529
Net earnings attributable to Class A Units		(5,039	)		(14,233	)		(16,216	)		(21,911	)
Net earnings attributable to common unitholders – Basic		351,726			886,098			1,061,607			1,361,618
Net earnings attributable to Class A Units		5,039			14,233			16,216			21,911
Net earnings attributable to exchangeable other limited partnership units		173			249			537			1,014
Adjusted net earnings attributable to common unitholders – Diluted	$	356,938		$	900,580		$	1,078,360		$	1,384,543

Weighted average common partnership units outstanding – Basic		583,363			537,257			554,313			536,021
Incremental weighted average effect on exchange of Class A Units		8,412			8,588			8,467			8,625
Incremental weighted average effect on exchange of other limited partnership units		898			1,084			929			1,540
Incremental weighted average effect of equity awards of Prologis, Inc.		4,974			7,234			4,890			5,432
Weighted average common units outstanding – Diluted (2)		597,647			554,163			568,599			551,618

Net earnings per unit attributable to common unitholders:
Basic	$	0.60		$	1.65		$	1.92		$	2.54
Diluted	$	0.60		$	1.63		$	1.90		$	2.51

(1)

The exchangeable limited partnership units include the units as discussed in Note 7. Earnings allocated to the exchangeable OP units not held by the Parent have been included in the numerator and exchangeable common 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 weighted average potentially dilutive shares and units outstanding consisted of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Class A Units		8,412		8,588		8,467		8,625
Other limited partnership units		898		1,084		929		1,540
Equity awards		7,722		9,934		8,166		9,038
Prologis, L.P.		17,032		19,606		17,562		19,203
Common limited partnership units		8,843		5,969		7,701		5,985
Prologis, Inc.		25,875		25,575		25,263		25,188