Earnings per Share / Unit (Tables)

9 Months Ended

Sep. 30, 2023

Computation of Net Income per Share on Basic and Diluted Basis

The following table reflects the Company’s computation of net income per common share on a basic and diluted basis for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands, except share and per share data):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income	$	88,092	$	61,665	$	341,205	$	206,234
Less:
Noncontrolling interest	10,493		7,464		41,140		24,119
Dividends on preferred shares	3,486		3,486		10,458		13,595
Redemption of perpetual preferred shares	—		—		—		5,276
Allocation to participating securities (1)	238		188		854		583
Numerator for income per common share–basic and diluted	$	73,875	$	50,527	$	288,753	$	162,661





Denominator:
Weighted-average common shares outstanding–basic	362,426,273		348,944,055		361,665,436		347,730,579
Effect of dilutive securities:
Share-based compensation plan and forward sale equity contracts (2)	498,659		400,486		455,692		552,416
Weighted-average common shares outstanding–diluted (3)	362,924,932		349,344,541		362,121,128		348,282,995

Net income per common share:
Basic	$	0.20	$	0.14	$	0.80	$	0.47
Diluted	$	0.20	$	0.14	$	0.80	$	0.47

(1)Unvested RSUs that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per share using the two-class method.

(2)Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options and vesting of PSUs for the three and nine months ended September 30, 2023 and 2022 and the dilutive effect of forward sale equity contracts under the treasury stock method for the nine months ended September 30, 2022 (see Note 10. Shareholders’ Equity / Partners’ Capital).

(3)The effect of the potential conversion of OP units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Class A common shares on a one-for-one basis. The income allocable to the OP units is allocated on this same basis and reflected as noncontrolling interest in the accompanying condensed consolidated financial statements. As such, the assumed conversion of the OP units would have no net impact on the determination of diluted earnings per share.

The following table reflects the Operating Partnership’s computation of net income per common unit on a basic and diluted basis for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands, except unit and per unit data):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income	$	88,092	$	61,665	$	341,205	$	206,234
Less:

Preferred distributions	3,486		3,486		10,458		13,595
Redemption of perpetual preferred units	—		—		—		5,276
Allocation to participating securities (1)	238		188		854		583
Numerator for income per common unit–basic and diluted	$	84,368	$	57,991	$	329,893	$	186,780





Denominator:
Weighted-average common units outstanding–basic	413,803,253		400,321,035		413,042,416		399,107,559
Effect of dilutive securities:
Share-based compensation plan and forward sale equity contracts (2)	498,659		400,486		455,692		552,416
Weighted-average common units outstanding–diluted	414,301,912		400,721,521		413,498,108		399,659,975

Net income per common unit:
Basic	$	0.20	$	0.14	$	0.80	$	0.47
Diluted	$	0.20	$	0.14	$	0.80	$	0.47