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Income per Unit

6 Months Ended

Jun. 30, 2011

8. Income per Unit

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net income available to common unitholders	$	33,572	$	9,651	$	66,204	$	25,368

Weighted average units outstanding—basic		101,056,387		86,149,647		98,698,968		84,699,431
Potentially dilutive common units:
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 units outstanding—diluted		102,272,613		88,629,135		99,836,518		86,985,900

Income per unit:
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. Pursuant to the terms of the Operating Partnership's agreement of limited partnership, the Operating Partnership will deliver to Digital Realty Trust, Inc. one common unit for each share of common stock issuable upon exchange of the 2026 Debentures. 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 common units contingently issuable upon settlement of the excess exchange value were included as potentially dilutive common units in determining diluted earnings per unit 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 common units contingently issuable upon settlement of the excess exchange value were included as potentially dilutive common units in determining diluted earnings per unit 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
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 Units		2,864,660		3,657,477		3,256,316		3,657,477
Potentially dilutive Series D Cumulative Convertible Preferred Units		6,418,585		8,237,540		7,370,713		8,226,381

		15,572,679		18,090,362		16,906,795		18,084,549