Earnings per Common Share

Basic and diluted earnings per common share are calculated by dividing the net income or loss attributable to common shareholders by the basic and diluted weighted-average number of common shares outstanding in the period, respectively, using the allocation method prescribed by the two-class method. The Company applies this method to compute earnings per share because it distributes non-forfeitable dividend equivalents on restricted stock units granted to certain employees and non-employee trustees who have the right to participate in the distribution of common dividends while the restricted stock units are unvested. During the three and six months ended June 30, 2019, the weighted-average number of restricted stock units that participated in the distribution of common dividends was 1,396,956 and 1,242,081, of which 627,890 restricted stock units currently have vested but will not be settled until additional criteria are met.

The shares issuable upon settlement of the 2018 forward sale agreement and 2019 forward sale agreement are reflected in the diluted earnings per share calculations using the treasury stock method. Under this method, the number of the Company’s common shares used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of common shares that would be issued upon full physical settlement of the applicable forward sale agreement over the number of common shares that could be purchased by the Company in the market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). If and when the Company physically or net share settles either forward sale agreement, the delivery of common shares would result in an increase in the number of shares outstanding and dilution to earnings per share.

Prior to the IPO, holders of Series B Preferred Shares were entitled to cumulative dividends, which were added to the reported net income whether or not declared or paid to determine the net income attributable to common shareholders under the two-class method.

A reconciliation of the basic and diluted weighted-average number of common shares outstanding for the three and six months ended June 30, 2019 and 2018 is as follows (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Weighted average common shares outstanding – basic	182,325	143,499	165,869	133,965
Dilutive effect of share-based awards	1,606	2,975	1,778	2,772
Equity forward contract	2,186	—	1,658	—
Weighted average common shares outstanding – diluted	186,117	146,474	169,305	136,737

For the three and six months ended June 30, 2019 and 2018, none of the outstanding instruments under our share-based awards program or equity forward contracts were antidilutive and excluded from the denominator for calculating diluted earnings per share.