Earnings per Share

3 Months Ended

Mar. 31, 2022

The Company’s capital structure includes common stock and unvested restricted stock awards. To compute earnings per share (“EPS”), the Company applies the two-class method because the Company’s unvested restricted stock awards are participating securities which are entitled to participate equally with the Company’s common stock in undistributed earnings. Application of the Company’s two-class method is as follows:

(i)Net income attributable to the Company is reduced by the amount of dividends declared and by the contractual amount of dividends that must be paid for the current period for each class of stock. There were no contractual dividends paid for the three months ended March 31, 2021 and 2022.

(ii)The remaining undistributed net income of the Company is then equally allocated to its common stock and unvested restricted stock awards, as if all of the earnings for the period had been distributed. The total net income allocated to each security is determined by adding both distributed and undistributed net income for the period.

(iii)The net income allocated to each security is then divided by the weighted average number of outstanding shares for the period to determine the EPS for each security considered in the two-class method.

The following table sets forth the net income attributable to the Company, its common shares outstanding, and its participating securities outstanding.


	Basic and Diluted EPS
	Three Months Ended March 31,
		2021		2022
		(in thousands)
Net income		$	137,214	$	55,926
Less: net income attributable to non-controlling interests		26,668		6,809
Net income attributable to the Company		110,546		49,117
Less: Distributed and undistributed income attributable to participating securities		3,698		1,643
Distributed and undistributed income attributable to common shares		$	106,848	$	47,474

The following tables set forth the computation of EPS under the two-class method:


	Three Months Ended March 31,
	2021					2022
	Net Income Allocation		Shares(1)	Basic and Diluted EPS		Net Income Allocation		Shares(1)	Basic and Diluted EPS
	(in thousands, except for per share amounts)
Common shares	$	106,848	130,329	$	0.82	$	47,474	129,010	$	0.37
Participating securities	3,698		4,511	$	0.82	1,643		4,464	$	0.37
Total Company	$	110,546				$	49,117

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(1) Represents the weighted average share count outstanding during the period.