EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2016

Basic earnings per Common Share is computed by dividing net income attributable to Common Shareholders by the weighted average Common Shares outstanding. At September 30, 2016, the Company has unvested LTIP Units (Note 13) which provide for non-forfeitable rights to dividend equivalent payments. Accordingly, these unvested LTIP Units are considered participating securities and are included in the computation of basic earnings per Common Share pursuant to the two-class method.

Diluted earnings per Common Share reflects the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of restricted share unit ("Restricted Share Units") awards issued under the Company's Share Incentive Plans (Note 13). The effect of the assumed conversion of 188 Series A Preferred OP Units into 25,067 Common Shares would be anti-dilutive and therefore not included for the three and nine months ended September 30, 2016 and three months ended September 30, 2015. Conversely, the assumed conversion of these would be dilutive and included in the computation of diluted earning per share for the nine months ended September 30, 2015 . The effect of the assumed conversion of 141,593 Series C Preferred OP Units into 402,252 Common Shares, would be anti-dilutive and therefore not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2016. Additionally, the 2,732,388 Common Shares that were subject to the forward sales agreement entered into in April 2016 that were not settled would be dilutive and are included in the computation of diluted earnings per share for the three and nine months ended September 30, 2016.

The effect of the conversion of Common OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.

2. EARNINGS PER COMMON SHARE (continued)

The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in thousands, except per share amounts)	2016			2015			2016			2015
Numerator
Net income attributable to Common Shareholders	$	6,112		$	13,776		$	52,955		$	56,818
Less: net income attributable to participating securities	(58		)	(196		)	(617		)	(810		)
Net income attributable to Common Shareholders, net of income attributable to participating securities	6,054			13,580			52,338			56,008

Denominator
Weighted average shares for basic earnings per share	78,449			68,943			74,050			68,690
Effect of dilutive securities:
Employee Restricted Share Units and share options	3			14			8			24
Forward settlement agreement	169			—			76			—
Convertible Preferred OP Units	—			—			—			25
Denominator for diluted earnings per share	78,621			68,957			74,134			68,739

Basic and diluted earnings per Common Share attributable to Common Shareholders	$	0.08		$	0.20		$	0.71		$	0.82