Earnings Per Share

9 Months Ended

Sep. 30, 2022

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator for basic earnings per share - net income (loss) attributable to common stockholders	$	(6,767)	$	179,663	$	144,942	$	277,466


Adjustment for net income (loss) attributable to OP units(1)	(7)		(473)		99		(2,699)
Numerator for diluted earnings per share	$	(6,774)	$	179,190	$	145,041	$	274,767

Denominator for basic earnings per share - weighted average shares	463,366		428,031		455,074		420,955
Effect of dilutive securities:
Employee stock options	7		—		26		—
Non-vested restricted shares	1,238		537		1,127		465
OP units(1)	2,316		1,396		1,749		1,396
Employee stock purchase program	23		19		23		19
Dilutive potential common shares	3,584		1,952		2,925		1,880
Denominator for diluted earnings per share - adjusted weighted average shares	463,366		429,983		457,999		422,835

Basic earnings per share	$	(0.01)	$	0.42	$	0.32	$	0.66
Diluted earnings per share	$	(0.01)	$	0.42	$	0.32	$	0.65

(1) OP units include both Welltower OP units owned by outside investors as well as OP units owned by outside investors in certain consolidated DownREIT subsidiaries.

The diluted earnings per share calculation for the three months ended September 30, 2022 excludes the dilutive effect of all common stock equivalents as they are anti-dilutive due to the net loss attributable to common stockholders. As of September 30, 2022, and September 30, 2021, outstanding forward sales agreements for the sale of 17,964,603 shares and 11,798,154 shares, respectively, were not included in the computation of diluted earnings per share because such forward sales were anti-dilutive for the periods.