EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested time-based restricted stock awards with non-forfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses.

Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share):



	For the Three Months Ended March 31,
	2017			2016
Numerator:
Net income	$	33,206		$	48,734
Less: Preferred dividends	(4,200		)	(4,147		)
Allocation to participating securities	(114		)	(29		)
Attributable to non-controlling interest	(120		)	(249		)
Net income attributable to common stockholders, net of amount allocated to participating securities	$	28,772		$	44,309
Denominator:
Weighted average common shares outstanding - basic	92,762			86,360
Dilutive effect of equity-based compensation awards	468			810
Weighted average common shares outstanding - diluted	93,230			87,170
Earnings per share:
Basic and diluted	$	0.31		$	0.51

All outstanding stock options were included in the computation of diluted earnings per share for the three months ended March 31, 2017 and 2016 due to their dilutive effect. The Common Units held by the non-controlling interest holders have been excluded from the denominator of the diluted earnings per share as there would be no effect on the amounts since the limited partners' share of income would also be added to derive net income attributable to common stockholders. For the three months ended March 31, 2017 and 2016, we had unvested performance-based restricted stock awards of 589,107 shares and 449,027 shares, respectively, which were excluded from the denominator of the diluted earnings per share as the awards had not achieved the requisite performance conditions for vesting at each period end.