Earnings Per Share

9 Months Ended

Sep. 30, 2011

EARNINGS PER SHARE

We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating securities is calculated according to dividends declared and participation rights in undistributed earnings. We had 0.3 million weighted average unvested shares outstanding for the three and nine months ended September 30, 2011 and 0.2 million weighted average unvested shares outstanding for the three and nine months ended September 30, 2010 which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares; the portion of earnings allocated to the unvested shares is reflected as “earnings allocated to unvested shares” in the reconciliation below.

In the dilutive EPS calculation, dilutive stock options were calculated using the treasury stock method consistent with prior periods; stock options of less than 0.1 million and 0.1 million for the three months ended September 30, 2011 and 2010, respectively, and stock options of 0.1 million and 0.3 million for the nine months ended September 30, 2011 and 2010, respectively, have been excluded as they were anti-dilutive. The conversions of downREIT operating partnership units and 5.417% Series 1 Cumulative Convertible Preferred Shares are anti-dilutive for all periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands, except per share data)
NUMERATOR
Income from continuing operations	$	33,532		$	30,740		$	99,388		$	91,715
Less: Preferred share dividends	(136		)	(136		)	(406		)	(406		)
Less: Income from continuing operations attributable to noncontrolling interests	(1,249		)	(1,370		)	(3,941		)	(3,958		)
Less: Earnings allocated to unvested shares	(207		)	(136		)	(509		)	(404		)
Income from continuing operations available for common shareholders	31,940			29,098			94,532			86,947
Results from discontinued operations attributable to the Trust	14,770			270			17,549			1,807
Gain on sale of real estate	—			—			—			410
Net income available for common shareholders, basic and diluted	$	46,710		$	29,368		$	112,081		$	89,164
DENOMINATOR
Weighted average common shares outstanding—basic	62,818			61,215			62,172			61,158
Effect of dilutive securities:
Stock options	172			144			169			139
Weighted average common shares outstanding—diluted	62,990			61,359			62,341			61,297
EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.51		$	0.48		$	1.52		$	1.42
Discontinued operations	0.23			—			0.28			0.03
Gain on sale of real estate	—			—			—			0.01
	$	0.74		$	0.48		$	1.80		$	1.46
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.51		$	0.48		$	1.52		$	1.41
Discontinued operations	0.23			—			0.28			0.03
Gain on sale of real estate	—			—			—			0.01
	$	0.74		$	0.48		$	1.80		$	1.45
Income from continuing operations attributable to the Trust	$	32,283		$	29,370		$	95,447		$	87,757