Earnings Per Share

12 Months Ended

Dec. 31, 2019

Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding including dilutive securities.

Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested share-based compensation (participating securities) have been excluded, as applicable, from net income or loss available to common stockholders used in the basic and diluted earnings per share calculations.

The following is a reconciliation of the calculation of basic and diluted earnings per share (in thousands, except share and per-share data):



	Years Ended December 31,
	2019			2018		2017
Numerator:
Net income attributable to common stockholders	$	183,487		$	87,784	$	91,877
Distributions declared on unvested share-based compensation	(132		)	—		—
Net income available to common stockholders	$	183,355		$	87,784	$	91,877
Denominator:
Weighted-average number of common shares outstanding—basic	202,009,750			205,462,911		200,784,450
Effect of dilutive securities:
Unvested restricted common stock	156,146			215,655		188,759
Shares related to unvested PSUs	575,734			452,584		548,259
Weighted-average number of common shares outstanding—diluted	202,741,630			206,131,150		201,521,468
Earnings per share:
Net income per share available to common stockholders—basic	$	0.91		$	0.43	$	0.46
Net income per share available to common stockholders—diluted	$	0.90		$	0.43	$	0.46

The common OP units held by the noncontrolling interest holders have been excluded from the denominator of the diluted earnings per share calculation as there would be no effect on the amounts since the OP units' share of income or loss would also be added or subtracted to derive net income (loss) available to common stockholders.