EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2025

Basic earnings per common share is computed using the two-class method by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted stock awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders; accordingly, they are considered participating securities that are included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using the two-class, treasury stock or if-converted method, whichever is most dilutive. Potential common shares are securities (such as Series B Redeemable Preferred Units (“Series B Units”), Series D Redeemable Preferred Units (“Series D Units” and, together with the Series B Units, the “Preferred OP Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right.

In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per common share, only potential common shares that are dilutive (i.e. those that reduce earnings per common share) are included.

For the purposes of computing the diluted impact of the potential exchange of the Preferred OP Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, the Company divided the total liquidation value of the Preferred OP Units by the average share price for the period presented. The average share price for the three months ended March 31, 2025 and 2024 was $151.64 and $145.80, respectively.

The following table presents the number of weighted OP Units and Preferred OP Units, and the potential common shares that were excluded from the computation of earnings per share as their effect would have been anti-dilutive:


	For the Three Months Ended March 31,
	2025	2024
	Equivalent Shares (if converted)	Equivalent Shares (if converted)
Common OP Units	9,369,704	—

Series B Units	221,368	230,234
Series D Units	—	1,272,862
	9,591,072	1,503,096

The computation of earnings per common share is as follows for the periods presented:


	For the Three Months Ended March 31,
	2025		2024
Net income attributable to common stockholders	$	270,875	$	213,112
Earnings and dividends allocated to participating securities	(416)		(354)
Earnings for basic computations	270,459		212,758

Income allocated to noncontrolling interest - Preferred OP Units and OP Units	220		8,764

Net income for diluted computations	$	270,679	$	221,522

Weighted average common shares outstanding:
Average number of common shares outstanding - basic	211,850,618		211,283,335
Common OP Units	—		8,731,738


Series D Units	202,124		—

Shares related to dilutive stock options	—		3,704
Average number of common shares outstanding - diluted	212,052,742		220,018,777
Earnings per common share
Basic	$	1.28	$	1.01
Diluted	$	1.28	$	1.01