Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Computation of Basic and Diluted Earnings Per Share

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator for earnings per common share - basic:
Net (loss) income	$	(26,227)	$	26,232	$	23,417	$	64,819
Net loss (income) attributable to noncontrolling interest	38		(86)		(51)		(204)
Preferred distributions	(1,997)		(1,997)		(5,991)		(5,991)


Numerator for net (loss) income per share - basic	$	(28,186)	$	24,149	$	17,375	$	58,624

Numerator for earnings per common share - diluted:
Net (loss) income	$	(26,227)	$	26,232	$	23,417	$	64,819
Net loss (income) attributable to noncontrolling interest	38		(86)		(51)		(204)
Preferred distributions	(1,997)		(1,997)		(5,991)		(5,991)

Numerator for net (loss) income per share - diluted	$	(28,186)	$	24,149	$	17,375	$	58,624

Denominator for earnings per common share - basic and diluted:
Weighted average number of common shares outstanding - basic(1)	107,456		108,931		107,363		109,494
RSUs(2)	—		1,176		921		1,299
LTIP Units(3)	—		110		107		123


Weighted average number of common shares outstanding - diluted	107,456		110,217		108,391		110,916

Net (loss) income per common share attributable to Equity Commonwealth common shareholders:
Basic	$	(0.26)	$	0.22	$	0.16	$	0.54
Diluted	$	(0.26)	$	0.22	$	0.16	$	0.53

Anti-dilutive securities(4):
Effect of Series D preferred shares; 6.50% cumulative convertible	4,032		4,032		4,032		4,032
Effect of RSUs(2)	640		—		—		—
Effect of LTIP Units(3)	101		—		—		—
Effect of OP Units and time-based LTIP Units(5)	154		361		180		348

(1) The three months ended September 30, 2024 and 2023, include 128 and 131 weighted-average, unvested, earned RSUs, respectively, and the nine months ended September 30, 2024 and 2023, include 129 and 125 weighted-average, unvested, earned RSUs, respectively.

(2) Represents the weighted-average number of common shares that would have been issued if the quarter-end was the measurement date for unvested, unearned RSUs.

(3) Represents the weighted-average dilutive shares issuable from market-based LTIP Units if the quarter-end was the measurement date for the periods shown.

(4) These securities are excluded from the diluted earnings per share calculation for one or more of the periods presented because including them results in anti-dilution.

(5) Beneficial interests in the Operating Trust.