Income Per Share

9 Months Ended

Sep. 30, 2012

Income Per Share [Abstract]

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 September 30,		Nine Months Ended September 30,
	2012	2011	2012	2011
Net income available to common stockholders	$            45,615	$            31,908	$          126,847	$            94,878
Weighted average shares outstanding—basic	122,026,421	100,588,235	112,995,512	96,137,611
Potentially dilutive common shares:
Stock options	76,774	197,632	74,462	192,885
Class C Units (2007 Grant)	-	49,163	-	38,654
Unvested incentive units	250,316	162,832	205,247	145,032
Series E preferred stock	-	914,480	-	308,176
Excess exchange value of the 2026 Debentures	-	-	-	494,292
Weighted average shares outstanding—diluted	122,353,511	101,912,342	113,275,221	97,316,650
Income per share:
Basic	$                0.37	$                0.32	$                1.12	$                0.99
Diluted	$                0.37	$                0.31	$                1.12	$                0.97

During the year ended December 31, 2011, the Operating Partnership’s remaining 4.125% exchangeable senior debentures due August 15, 2026 (2026 Debentures) were redeemed and exchanged. On or after July 15, 2026, the 2026 Debentures would have been exchangeable 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 also would have been exchangeable prior to July 15, 2026, but only upon the occurrence of certain specified events, including if the weighted average common stock price exceeded a specified strike price as of the end of a fiscal quarter. Using the treasury stock method, 494,292 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 nine months ended September 30, 2011.  

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2012	2011	2012	2011
Weighted average of Operating Partnership common    units not owned by Digital Realty Trust, Inc.	4,345,574	4,481,045	4,346,586	4,708,129
Potentially dilutive 2029 Debentures	6,514,812	6,368,292	6,471,282	6,309,599
Potentially dilutive Series C Cumulative Convertible    Preferred Stock	-	2,783,811	1,087,398	3,097,084
Potentially dilutive Series D Cumulative Convertible    Preferred Stock	4,219,384	5,603,998	4,309,978	6,775,337
Potentially dilutive Series E Cumulative Redeemable    Preferred Stock	4,151,146	-	4,045,501	-
Potentially dilutive Series F Cumulative Redeemable    Preferred Stock	2,632,647	-	1,243,998	-
	21,863,563	19,237,146	21,504,743	20,890,149