Basic earnings per OP Unit is computed by dividing net income available for common unitholders by the weighted average number of OP Units outstanding during the period. All outstanding unvested restricted unit awards contain rights to non-forfeitable distributions and participate in undistributed earnings with common unitholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per OP unit. Diluted earnings per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units. A reconciliation of the numerators and denominators of the basic and diluted earnings per OP Unit computations for the three months ended March 31, 2017 and 2016 is presented below:



(dollars and units in thousands, except per unit amounts)	Three months ended March 31,
	2017			2016
Units Outstanding
Weighted average common units - basic	117,557			75,249
Effect of dilutive securities	307			240
Weighted average common units - diluted	117,864			75,489

Calculation of Earnings per Unit - basic
Net Income	$	43,416		$	45,808
Unvested restricted stock (allocation of earnings)	(73		)	(110		)
Preferred unit distributions	(922		)	—
Net income available for common unitholders, adjusted	$	42,421		$	45,698

Weighted average common units - basic	117,557			75,249
Earnings per common unit - basic	$	0.36		$	0.61

Calculation of Earnings per Unit - diluted
Net Income	$	43,416		$	45,808
Preferred unit distributions	(922		)	—
Net income available for common unitholders, adjusted	$	42,494		$	45,808

Weighted average common units - diluted	117,864			75,489
Earnings per common unit - diluted	$	0.36		$	0.61