BENEFICIARIES’ EQUITY OF THE PARENT COMPANY

Earnings per Share (EPS)

The following tables detail the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):



	Year ended December 31,
	2013						2012						2011
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Numerator
Income (loss) from continuing operations	$	38,982		$	38,982		$	(37,309	)	$	(37,309	)	$	(24,556	)	$	(24,556	)
Net (income) loss from continuing operations attributable to non-controlling interests	(357		)	(357		)	863			863			994			994
Amount allocable to unvested restricted shareholders	(363		)	(363		)	(376		)	(376		)	(505		)	(505		)
Preferred share dividends	(6,900		)	(6,900		)	(10,405		)	(10,405		)	(7,992		)	(7,992		)
Preferred share redemption charge	—			—			(4,052		)	(4,052		)	—			—
Income (loss) from continuing operations available to common shareholders	31,362			31,362			(51,279		)	(51,279		)	(32,059		)	(32,059		)
Income from discontinued operations	4,207			4,207			43,838			43,838			19,841			19,841
Discontinued operations attributable to non-controlling interests	(55		)	(55		)	(797		)	(797		)	(778		)	(778		)
Discontinued operations attributable to common shareholders	4,152			4,152			43,041			43,041			19,063			19,063
Net income (loss) attributable to common shareholders	$	35,514		$	35,514		$	(8,238	)	$	(8,238	)	$	(12,996	)	$	(12,996	)
Denominator
Weighted-average shares outstanding	153,140,458			153,140,458			143,257,097			143,257,097			135,444,424			135,444,424
Contingent securities/Share based compensation	—			1,273,853			—			—			—			—
Total weighted-average shares outstanding	153,140,458			154,414,311			143,257,097			143,257,097			135,444,424			135,444,424
Earnings per Common Share:
Income (loss) from continuing operations attributable to common shareholders	$	0.20		$	0.20		$	(0.36	)	$	(0.36	)	$	(0.24	)	$	(0.24	)
Discontinued operations attributable to common shareholders	0.03			0.03			0.30			0.30			0.14			0.14
Net income (loss) attributable to common shareholders	$	0.23		$	0.23		$	(0.06	)	$	(0.06	)	$	(0.10	)	$	(0.10	)

Redeemable common limited partnership units totaling 1,763,739 in 2013, 1,845,737 in 2012, and 2,698,647 in 2011 were excluded from the diluted earnings per share computations because they are not dilutive.

The contingent securities/share based compensation impact is calculated using the treasury stock method and relates to employee awards settled in shares of the Parent Company. The effect of these securities is anti-dilutive for periods that the Parent Company incurs a net loss from continuing operations available to common shareholders and therefore is excluded from the dilutive earnings per share calculation in such periods.

Unvested restricted shares 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 years ended December 31, 2013, 2012 and 2011, earnings representing nonforfeitable dividends were allocated to the unvested restricted shares issued to the Company’s executives and other employees under the 1997 Plan.

Common and Preferred Shares

On December 10, 2013, the Parent Company declared a distribution of $0.15 per common share, totaling $23.9 million, which was paid on January 21, 2014 to shareholders of record as of January 6, 2014. On December 10, 2013, the Parent Company declared distributions on its Series E Preferred Shares to holders of record as of December 30, 2013. These shares are entitled to a preferential return of 6.90% per annum on the $25.00 per share liquidation preference. Distributions paid on January 15, 2014 to holders of Series E Preferred Shares totaled $1.7 million.

On November 5, 2013, the Parent Company commenced a continuous equity offering program (the “Offering Program”), under which it may sell, in at-the-market offerings, up to an aggregate amount of 16,000,000 common shares until November 5, 2016. This Offering Program replaced a prior continuous equity offering program which expired on March 10, 2013. The Parent Company may sell common shares in amounts and at times to be determined by the Parent Company. Actual sales will depend on a variety of factors to be determined by the Parent Company, including, among others, market conditions, the trading price of the Company’s common shares of beneficial interest and determinations by the Parent Company of the appropriate sources of funding. In conjunction with the Offering Program, the Parent Company engages sales agents who receive compensation, in aggregate, of up to 2% of the gross sales price per share sold. From inception of the Offering Program through December 31, 2013, the Parent Company has not sold any shares under the program, resulting in 16,000,000 remaining shares available for sale.

On April 10, 2013, the Parent Company closed a public offering of 12,650,000 common shares, inclusive of 1,650,000 common shares issued upon exercise by the underwriters of the option granted to them to purchase additional shares. The Parent Company contributed the net proceeds from the sale of shares, amounting to $181.5 million after deducting underwriting discounts and commissions and other offering expenses, to the Operating Partnership in exchange for partnership units of the Operating Partnership. The Operating Partnership continues to use the net proceeds for working capital, capital expenditures and other general corporate purposes, which may include acquisitions, developments and the repayment, repurchase and refinancing of debt.

Common Share Repurchases

The Parent Company maintains a share repurchase program under which it may repurchase its common shares from time to time in accordance with limits set by the Board of Trustees.

The Parent Company did not repurchase any shares under the share repurchase program during the year-ended December 31, 2013. As of December 31, 2013, the Parent Company may purchase an additional 539,200 shares under the program.

Repurchases may be made from time to time in the open market or in privately negotiated transactions, subject to market conditions and compliance with legal requirements. The share repurchase program does not contain any time limitation and does not obligate the Parent Company to repurchase any shares. The Parent Company may discontinue the program at any time.