Income per Share

6 Months Ended

Jun. 30, 2011

Income per Share

Income per Share

7. Income per Share

The following is a summary of basic and diluted income per share (in thousands, except share and per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net income available to common stockholders	$	31,990	$	9,091	$	62,970	$	23,835
Weighted average shares outstanding—basic		96,295,585		80,542,329		93,875,415		79,164,167
Potentially dilutive common shares:
Stock options		203,078		225,931		193,985		206,803
Class C Units (2007 Grant)		73,855		154,229		67,856		142,747
Unvested incentive units		180,377		179,267		152,927		155,504
Excess exchange value of the 2026 Debentures		758,916		1,920,061		722,782		1,781,415
Weighted average shares outstanding—diluted		97,511,811		83,021,817		95,012,965		81,450,636
Income per share:
Basic	$	0.33	$	0.11	$	0.67	$	0.30
Diluted	$	0.33	$	0.11	$	0.66	$	0.29

On or after July 15, 2026, the 2026 Debentures may be exchanged at the then-applicable exchange rate for cash (up to the principal amount of the 2026 Debentures) and, with respect to any excess exchange value, into cash, shares of Digital Realty Trust, Inc. common stock or a combination of cash and shares of Digital Realty Trust, Inc. common stock. The 2026 Debentures are also exchangeable prior to July 15, 2026, but only upon the occurrence of certain specified events. During the three and six months ended June 30, 2011, the weighted average common stock price exceeded the strike price as of June 30, 2011 of $30.99. Therefore, using the treasury method, 758,916 and 722,782 shares of common stock contingently issuable upon settlement of the excess exchange value were included as potentially dilutive common shares in determining diluted earnings per share for the three and six months ended June 30, 2011, respectively. During the three and six months ended June 30, 2010, the weighted average common stock price exceeded the strike price as of June 30, 2010 of $31.84. Therefore, using the treasury method, 1,920,061 and 1,781,415 shares of common stock contingently issuable upon settlement of the excess exchange value were included as potentially dilutive common shares in determining diluted earnings per share for the three and six months ended June 30, 2010, respectively.

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Weighted average of Operating Partnership common units not owned by us		4,760,802		4,964,417		4,823,553		4,874,406
Potentially dilutive outstanding stock options		—		—		—		5,346
Potentially dilutive 2029 Debentures		6,289,434		6,195,345		6,279,766		6,195,345
Potentially dilutive Series C Cumulative Convertible Preferred Stock		2,864,660		3,657,477		3,256,316		3,657,477
Potentially dilutive Series D Cumulative Convertible Preferred Stock		6,418,585		8,237,540		7,370,713		8,226,381
		20,333,481		23,054,779		21,730,348		22,958,955