Earnings Per Share and Earnings Per Unit

9 Months Ended

Sep. 30, 2022

Earnings Per Share and Earnings Per Unit

12. EARNINGS PER SHARE AND EARNINGS PER UNIT

The Company reports earnings per share and earnings per unit data in accordance ASC Topic 260, “Earnings Per Share.” Under ASC Topic 260-10, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method.

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.


(in thousands except per share data)	Three Months Ended September 30, 2022			Three Months Ended September 30, 2021			Nine Months Ended September 30, 2022			Nine Months Ended September 30, 2021
Numerator:
Net income attributable to common shareholders	$	98,505		$	70,274		$	264,344		$	175,172
Net income attributable to unvested restricted shares		(172	)		(119	)		(151	)		(78	)
Net income attributable to outstanding common shares	$	98,333		$	70,155		$	264,193		$	175,094
Effect of Dilutive Securities:
Net income attributable to preferred units		999			—			999			—
Numerator for diluted earnings per share	$	99,332		$	70,155		$	265,192		$	175,094
Denominator:
Denominator for basic earnings per share – weighted average shares		84,473			78,961			84,129			77,135
Effect of Dilutive Securities:
Stock options and non-vested stock		924			219			425			168
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversion		85,397			79,180			84,554			77,303
Basic earnings per common share attributable to common shareholders	$	1.16		$	0.89		$	3.14		$	2.27
Diluted earnings per common share attributable to common shareholders	$	1.16		$	0.89		$	3.14		$	2.27

Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.


(in thousands except per unit data)	Three Months Ended September 30, 2022			Three Months Ended September 30, 2021			Nine Months Ended September 30, 2022			Nine Months Ended September 30, 2021
Numerator:
Net income attributable to common unitholders	$	98,505		$	70,274		$	264,344		$	175,172
Net income attributable to unvested restricted units		(172	)		(119	)		(151	)		(78	)
Net income attributable to outstanding common units	$	98,333		$	70,155		$	264,193		$	175,094
Effect of Dilutive Securities:
Net income attributable to preferred units		999			—			999			—
Numerator for diluted earnings per unit	$	99,332		$	70,155		$	265,192		$	175,094
Denominator:
Denominator for basic earnings per unit – weighted average units		84,473			78,961			84,129			77,135
Effect of Dilutive Securities:
Stock options and non-vested stock		924			219			425			168
Denominator for diluted earnings per unit – adjusted weighted average units and assumed conversion		85,397			79,180			84,554			77,303
Basic earnings per common unit attributable to common unitholders	$	1.16		$	0.89		$	3.14		$	2.27
Diluted earnings per common unit attributable to common unitholders	$	1.16		$	0.89		$	3.14		$	2.27

Not included in the effect of dilutive securities above for both earnings per share and earnings per unit are 126,980 unvested restricted shares for the three months ended September 30, 2022, and 111,260 unvested restricted shares for the three months ended September 30, 2021, because their effect would be antidilutive. Additionally, the effect of 3,523,113 preferred noncontrolling redeemable Operating Partnership Units are included in the effect of dilutive securities above for both earnings per share and earnings

per unit for the three and nine months ended September 30, 2022 as if they were converted beginning at July 1, 2022 as such Units became redeemable during September 2022.