Earnings Per Common Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

Earnings Per Common Share

Earnings per common share are based on the weighted average number of common shares outstanding during each year. Codification Topic “Earnings Per Share” (“FASB ASC 260”) defines the calculation of basic and fully diluted earnings per share. Basic and fully diluted earnings per share are based on the weighted average shares outstanding during each year and basic earnings per share exclude any dilutive effects of options, unvested restricted shares and convertible securities. The conversion of OP Units has been excluded from the basic earnings per share calculation. The conversion of an OP Unit for a share of common stock has no material effect on earnings per common share on a fully diluted basis.

On June 25, 2013, management announced a two-for-one split, to be effected by and in the form of a stock dividend, to take effect on July 15, 2013. On July 15, 2013, each common shareholder of record on July 5, 2013, received one additional share of common stock for each share held. The incremental par value was recorded as an increase to the common stock account on our balance sheet to reflect the newly issued shares and such amount was offset by a reduction in the paid-in capital account on our balance sheet. Pursuant to the anti-dilution provision in the Operating Partnership’s Agreement of Limited Partnership, the stock split also affected the common OP units.

The following table sets forth the computation of the basic and diluted earnings per common share, as adjusted for the stock split, for the quarters and six months ended June 30, 2013 and 2012 (amounts in thousands, except per share data):

	Quarters Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerators:
Income from Continuing Operations:
Income from continuing operations	$	18,621		$	5,945		$	55,062		$	23,439
Amounts allocated to dilutive securities	(1,337		)	(166		)	(4,196		)	(1,368		)
Preferred Stock distributions	(2,329		)	(4,038		)	(4,640		)	(8,069		)
Income from continuing operations available to Common Shares – basic	14,955			1,741			46,226			14,002
Amounts allocated to dilutive securities	1,337			197			4,196			1,388
Income from continuing operations available to Common Shares – fully diluted	$	16,292		$	1,938		$	50,422		$	15,390
Income from Discontinued Operations:
Income from discontinued operations, net of amounts allocated to dilutive securities-basic and fully diluted	$	2,905		$	322		$	6,657		$	493
Net Income Available for Common Shares:
Net income available for Common Shares – basic	$	17,860		$	2,063		$	52,883		$	14,495
Amounts allocated to dilutive securities	1,597			197			4,730			1,388
Net income available for Common Shares – fully diluted	$	19,457		$	2,260		$	57,613		$	15,883
Denominator:
Weighted average Common Shares outstanding – basic	83,021			82,262			83,024			82,220
Effect of dilutive securities:
Redemption of Common OP Units for Common Shares	7,456			7,913			7,456			7,936
Employee stock options and restricted shares	651			605			630			618
Weighted average Common Shares outstanding – fully diluted	91,128			90,780			91,110			90,774
Earnings per Common Share – Basic:
Income from continuing operations	$	0.18		$	0.02		$	0.55		$	0.17
Income from discontinued operations	0.04			0.01			0.09			0.01
Net income available for Common Shares	$	0.22		$	0.03		$	0.64		$	0.18
Earnings per Common Share – Fully Diluted:
Income from continuing operations	$	0.18		$	0.02		$	0.55		$	0.17
Income from discontinued operations	0.03			—			0.08			—
Net income available for Common Shares	$	0.21		$	0.02		$	0.63		$	0.17