Earnings Per Share

9 Months Ended

Sep. 30, 2011

3. Earnings per Share

Basic earnings per share is computed by dividing net income (loss) attributable to the Company’s common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. All unvested share based payment awards are included in the computation of basic earnings per share. The computation of diluted earnings per share reflects common shares issuable from the assumed conversion of OP units and restricted OP units and other potentially dilutive securities in the weighted average shares. Net income attributable to noncontrolling interests is added back to net income (loss) available to common stockholders in the computation of diluted earnings per share. Computations of basic and diluted earnings per share are as follows (in thousands, except share data):


	Three months ended		Nine months ended
	September 30, 2011		September 30, 2011
Basic earnings per share:
Net income (loss) attributable to common stockholders	$	408		(702	)


Diluted earnings per share:
Net income (loss) attributable to common stockholders	$	408		(702	)
Add: net income attributable to noncontrolling interests		6		—	⁽¹⁾

Net income (loss) attributable to common shareholders and participating securities	$	414		(702	)


	Three months ended		Nine months ended
	September 30, 2011		September 30, 2011
Weighted average common shares outstanding:
Basic		30,724,000		30,716,828
Incremental shares from assumed conversion — OP units		435,593		—	⁽¹⁾

Diluted		31,159,593		30,716,828


Basic and diluted earnings per share:	$	0.01		(0.02	)


(1)		The Company reported a net loss for the nine months ended September 30, 2011. The effect of the inclusion of all potentially dilutive securities would be anti-dilutive when computing diluted earnings per share. Therefore, for the nine months ended September 30, 2011, the computation of both basic and diluted earnings per share is the same. For the nine months ended September 30, 2011, 435,593 OP units and restricted OP units were not included in the computation of diluted earnings per share because the effect of their inclusion would be anti-dilutive.

At September 30, 2011 and December 31, 2010, accrued dividends and OP unit distributions of approximately $5.0 million and $4.0 million, respectively, are recorded as a component of the accounts payable and accrued expenses line item on the Company’s condensed consolidated balance sheets.