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Earnings per Common Share
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings per Common Share Earnings per Common Share
 
Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted-average number of unvested restricted shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. The potential shares consist of the unvested restricted share grants and unvested performance units, calculated using the treasury stock method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation.
 
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating shares and are considered in the computation of earnings per share pursuant to the two-class method. If there were any undistributed earnings allocable to the participating shares, they would be deducted from net income attributable to common shareholders used in the basic and diluted earnings per share calculations.

The limited partners’ outstanding OP Units (which may be redeemed for common shares under certain circumstances) have been excluded from the diluted earnings per share calculation as there was no effect on the amounts for the three and nine months ended September 30, 2019 and 2018, since the limited partners’ share of income would also be added back to net income attributable to common shareholders.
 
The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data):
 
For the three months ended September 30,
 
For the nine months ended September 30,
 
2019
 
2018
 
2019
 
2018
Numerator:
 
 
 
 
 
 
 
Net income attributable to RLJ
$
32,463

 
$
73,975

 
$
93,160

 
$
161,378

Less: Preferred dividends
(6,279
)
 
(6,279
)
 
(18,836
)
 
(18,836
)
Less: Dividends paid on unvested restricted shares
(342
)
 
(274
)
 
(1,032
)
 
(937
)
Less: Undistributed earnings attributable to unvested restricted shares
—

 
(46
)
 
—

 
—

Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares
$
25,842

 
$
67,376

 
$
73,292

 
$
141,605

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average number of common shares - basic
170,495,699

 
174,326,198

 
171,976,429

 
174,253,393

Unvested restricted shares
105,088

 
129,075

 
90,044

 
109,523

Unvested performance units
—

 
24,068

 
—

 
2,185

Weighted-average number of common shares - diluted
170,600,787

 
174,479,341

 
172,066,473

 
174,365,101

 
 
 
 
 
 
 
 
Net income per share attributable to common shareholders - basic
$
0.15

 
$
0.39

 
$
0.43

 
$
0.81

 
 
 
 
 
 
 
 
Net income per share attributable to common shareholders - diluted
$
0.15

 
$
0.39

 
$
0.43

 
$
0.81