Earnings Per Share

9 Months Ended

Sep. 30, 2021

12.	Earnings Per Share

The following table provides a reconciliation of net income and the number of common shares used in the computations of “basic” earnings per share (“EPS”), which utilizes the weighted-average number of common shares outstanding without regard to dilutive potential common shares, and “diluted” EPS, which includes all such shares (in thousands, except per share amounts).

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2021			2020			2021			2020
Numerators – Basic and Diluted
Net income	$	28,157		$	7,403		$	66,325		$	37,628
Income attributable to non-controlling interests		(93	)		(116	)		(384	)		(621	)
Write-off of preferred share original issuance costs		—			—			(5,156	)		—
Preferred dividends		(2,789	)		(5,133	)		(10,867	)		(15,399	)
Earnings attributable to unvested shares and OP units		(150	)		—			(450	)		(149	)
Net income attributable to common shareholders after allocation to participating securities	$	25,125		$	2,154		$	49,468		$	21,459
Denominators – Number of Shares
Basic—Average shares outstanding		211,048			193,203			206,918			193,366
Assumed conversion of dilutive securities:
PRSUs		1,114			162			1,146			—
Forward equity		29			—			10			—
Diluted—Average shares outstanding		212,191			193,365			208,074			193,366
Earnings Per Share:
Basic	$	0.12		$	0.01		$	0.24		$	0.11
Diluted	$	0.12		$	0.01		$	0.24		$	0.11

For the three and nine months ended September 30, 2021, Performance Restricted Stock Units (“PRSUs”) issued to certain executives in March 2021, March 2020 and March 2019 were considered in the computation of dilutive EPS. For the three and nine months ended September 30, 2020, PRSUs issued to certain executives in March 2020, March 2019 and March 2017 (not outstanding for the three months ended September 30, 2020) were anti-dilutive and not considered in the computation of EPS, as no share units would have been issued under the plan if the performance period would have ended on September 30, 2020. The PRSUs issued in March 2018 were considered in the computation of EPS for the three months ended September 30, 2020, but were anti-dilutive and not included in the computation of EPS for the nine months ended September 30, 2020. In connection with the PRSUs granted in March 2018, the Company recorded a mark-to-market adjustment of $5.6 million as expense for the nine months ended September 30, 2021 and recorded $0.3 million as expense and $1.6 million as income for the three and nine months ended September 30, 2020, respectively. In March 2021, the Company issued 570,295 common shares in settlement of certain PRSUs granted in 2018 and 2020. The agreements to offer and sell shares on a forward basis for approximately 1.7 million common shares were considered in the computation of diluted EPS for the three and nine-month periods ended September 30, 2021 (Note 9). This agreement was not outstanding in 2020.