Earnings Per Common Share

9 Months Ended

Sep. 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 for the quarters and nine months ended September 30, 2013 and 2012 (amounts in thousands, except per share data, prior periods adjusted for stock split):

	Quarters Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerators:
(Loss) income from Continuing Operations:
(Loss) income from continuing operations	$	(6,632	)	$	18,785		$	48,430		$	42,218
Amounts allocated to dilutive securities	755			(1,271		)	(3,385		)	(2,614		)
Preferred Stock distributions	(2,311		)	(3,980		)	(6,951		)	(12,048		)
(Loss) income from continuing operations available to Common Shares – basic	(8,188		)	13,534			38,094			27,556
Amounts allocated to dilutive securities	(755		)	1,271			3,385			2,614
(Loss) income from continuing operations available to Common Shares – fully diluted	$	(8,943	)	$	14,805		$	41,479		$	30,170
Income from Discontinued Operations:
Income from discontinued operations, net of amounts allocated to dilutive securities	$	38,060		$	2,475		$	44,661		$	2,948
Net Income Available for Common Shares:
Net income available for Common Shares – basic	$	29,872		$	16,009		$	82,755		$	30,504
Amounts allocated to dilutive securities	2,753			1,503			7,483			2,891
Net income available for Common Shares – fully diluted	$	32,625		$	17,512		$	90,238		$	33,395
Denominator:
Weighted average Common Shares outstanding – basic	83,021			82,380			83,023			82,274
Effect of dilutive securities:
Redemption of Common OP Units for Common Shares	7,604			7,884			7,506			7,918
Stock options and restricted shares	634			630			620			644
Weighted average Common Shares outstanding – fully diluted	91,259			90,894			91,149			90,836
Earnings per Common Share – Basic:
(Loss) income from continuing operations	$	(0.10	)	$	0.16		$	0.46		$	0.33
Income from discontinued operations	0.46			0.03			0.54			0.04
Net income available for Common Shares	$	0.36		$	0.19		$	1.00		$	0.37
Earnings per Common Share – Fully Diluted:
(Loss) income from continuing operations	$	(0.10	)	$	0.16		$	0.46		$	0.33
Income from discontinued operations	0.46			0.03			0.53			0.04
Net income available for Common Shares	$	0.36		$	0.19		$	0.99		$	0.37