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 September 30,		Nine Months Ended September 30,
	2012	2011	2012	2011
Net income available to common unitholders	$ 47,189	$ 33,329	$ 131,668	$ 99,533
Weighted average units outstanding--basic	126,242,751	105,069,280	117,291,480	100,845,740
Potentially dilutive common units:
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 units	-	914,480	-	308,176
Excess exchange value of the 2026 Debentures	-	-	-	494,292
Weighted average units outstanding--diluted	126,569,841	106,393,387	117,571,189	102,024,779
Income per unit:
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 remaining 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. Pursuant to the terms of the Operating Partnership’s agreement of limited partnership, the Operating Partnership would have delivered to Digital Realty Trust, Inc. one common unit for each share of common stock issued upon exchange of the 2026 Debentures. 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 method, 494,292 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 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	2011	2010
Potentially dilutive 2029 Debentures	6,514,812	6,368,292	6,471,282	6,309,599
Potentially dilutive Series C Cumulative Convertible Preferred Units	-	2,783,811	1,087,398	3,097,084
Potentially dilutive Series D Cumulative Convertible Preferred Units	4,219,384	5,603,998	4,309,978	6,775,337
Potentially dilutive Series E Cumulative Redeemable Preferred Units	4,151,146	-	4,045,501	-
Potentially dilutive Series F Cumulative Redeemable Preferred Units	2,632,647	-	1,243,998	-
	17,517,989	14,756,101	17,158,157	16,182,020