Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

6. Basic and diluted earnings per unit are calculated by dividing net income attributable to unitholders, adjusted for non-forfeitable distributions paid out to unvested restricted unitholders and Fund II preferred shareholders, by the weighted average units outstanding during the period.

The following table shows how we arrived at basic and diluted income per unit:

	Quarter Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2013			2012			2013			2012
Net income (loss) attributable to Pope Resources' unitholders	$	6,128		$	(9,295	)	$	9,612		$	(8,089	)
Less:
Net income attributable to unvested restricted unitholders		(263	)		(27	)		(410	)		(47	)
Dividends paid to Fund II preferred shareholders		(4	)		(4	)		(8	)		(8	)
Net income (loss) for calculation of EPS	$	5,861		$	(9,326	)	$	9,194		$	(8,144	)
Weighted average units outstanding (in thousands):
Basic		4,369			4,351			4,367			4,348
Dilutive effect of unit equivalents		-			-			-			-
Diluted		4,369			4,351			4,367			4,348
Earnings (loss) per unit: Basic	$	1.34		$	(2.14	)	$	2.11		$	(1.87	)
Earnings (loss) per unit: Diluted	$	1.34		$	(2.14	)	$	2.11		$	(1.87	)

As of June 30, 2013 and 2012 there were no unexercised options.