Earnings Per Share

3 Months Ended

Mar. 31, 2019

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. For the three months ended March 31, 2019 and 2018, we had 0.2 million and 0.3 million weighted average unvested shares outstanding, respectively, 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. There were 682 anti-dilutive stock options for both the three months ended March 31, 2019 and 2018. 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
	March 31,
	2019			2018
	(In thousands, except per share data)
NUMERATOR
Net income	$	61,803		$	62,931
Less: Preferred share dividends	(2,010		)	(2,010		)
Less: Income from operations attributable to noncontrolling interests	(1,659		)	(1,684		)
Less: Earnings allocated to unvested shares	(220		)	(253		)
Net income available for common shareholders, basic and diluted	$	57,914		$	58,984
DENOMINATOR
Weighted average common shares outstanding—basic	74,200			72,905
Stock options	—			63
Weighted average common shares outstanding—diluted	74,200			72,968

EARNINGS PER COMMON SHARE, BASIC:
Net income available for common shareholders	$	0.78		$	0.81
EARNINGS PER COMMON SHARE, DILUTED:
Net income available for common shareholders	$	0.78		$	0.81