PARTNERS’ EQUITY OF THE OPERATING PARTNERSHIP

Earnings per Common Partnership Unit

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):



	Three-month periods ended March 31,
	2012						2011
	Basic			Diluted			Basic			Diluted
Numerator
Loss from continuing operations	$	(5,889	)	$	(5,889	)	$	(1,567	)	$	(1,567	)
Amount allocable to unvested restricted unitholders	(96		)	(96		)	(142		)	(142		)
Preferred unit dividends	(1,998		)	(1,998		)	(1,998		)	(1,998		)
Loss from continuing operations available to common unitholders	(7,983		)	(7,983		)	(3,707		)	(3,707		)
Discontinued operations attributable to common unitholders	15,225			15,225			1,077			1,077
Net income (loss) attributable to common unitholders	$	7,242		$	7,242		$	(2,630	)	$	(2,630	)
Denominator
Weighted-average units outstanding	145,485,422			145,485,422			144,480,173			144,480,173
Earnings per Common Partnership Unit:
Loss from continuing operations attributable to common unitholders	$	(0.05	)	$	(0.05	)	$	(0.03	)	$	(0.03	)
Discontinued operations attributable to common unitholders	0.10			0.10			0.01			0.01
Net income (loss) attributable to common unitholders	$	0.05		$	0.05		$	(0.02	)	$	(0.02	)

Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the three-months ended March 31, 2012 and 2011, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units.

Common Partnership Unit and Preferred Mirror Units

On March 20, 2012, the Operating Partnership declared a distribution of $0.15 per common partnership unit, totaling $21.6 million, which was paid on April 19, 2012 to unitholders of record as of April 5, 2012.

On March 20, 2012, the Operating Partnership declared distributions on its Series D Preferred Mirror Units and Series E Preferred Mirror Units to holders of record as of March 30, 2012. These units are entitled to a preferential return of 7.50% and 7.375%, respectively. Distributions paid on April 16, 2012 to holders of Series D Preferred Mirror Units and Series E Preferred Mirror Units totaled $0.9 million and $1.1 million, respectively.

During the three-month period ended March 31, 2012, the Parent Company did not sell any shares related to the Offering Program.

The Operating Partnership issued 7,111,112 Class F (2010) Units on August 5, 2010 in connection with its acquisition of Three Logan Square. The Class F (2010) Units were valued based on the closing market price of the Parent Company’s common shares on the acquisition date ($11.54) less $0.60 to reflect that these units did not begin to accrue a dividend prior to the first anniversary of their issuance. The Class F (2010) Units were subject to redemption at the option of the holders after the first anniversary of the acquisition. The Operating Partnership had the option to satisfy the redemption either for an amount, per unit, of cash equal to the market price of one of the Parent Company’s common share (based on the five-day trading average ending on the date of the exchange) or for one of the Parent Company’s common shares. On December 23, 2011, the Operating Partnership satisfied in full the holder's tender for redemption of all 7,111,112 of the Class F (2010) Units through the issuance of 7,111,112 Parent Company's common shares.

Common Unit Repurchases

The Parent Company did not repurchase any shares during the three-month period ended March 31, 2012 and accordingly, during the three-month period ended March 31, 2012, the Operating Partnership did not repurchase any units in connection with the Parent Company’s share repurchase program.