Net Income Available to Common Unitholders Per Unit of the Operating Partnership

The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders for the years ended December 31, 2015, 2014 and 2013:



	Year Ended December 31,
	2015			2014			2013
	(in thousands, except unit and per unit amounts)
Numerator:
Income from continuing operations	$	238,604		$	59,313		$	14,935
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries	(467		)	(247		)	(225		)
Preferred distributions	(13,250		)	(13,250		)	(13,250		)
Allocation to participating securities ⁽¹⁾	(1,634		)	(1,699		)	(1,689		)
Numerator for basic and diluted income (loss) from continuing operations available to common unitholders	223,253			44,117			(229		)
Income from discontinued operations ⁽²⁾	—			124,495			29,630
(Income) loss from discontinued operations attributable to noncontrolling interests in consolidated subsidiaries ⁽²⁾	—			(13		)	1
Numerator for basic and diluted net income available to common unitholders	$	223,253		$	168,599		$	29,402
Denominator:
Basic weighted average vested units outstanding	91,645,578			84,894,498			79,166,260
Effect of dilutive securities - contingently issuable shares and stock options	541,679			1,877,485			—
Diluted weighted average vested units and common unit equivalents outstanding	92,187,257			86,771,983			79,166,260
Basic earnings per unit:
Income from continuing operations available to common unitholders per unit	$	2.44		$	0.52		$	0.00
Income from discontinued operations per common unit ⁽²⁾	—			1.47			0.37
Net income available to common unitholders per unit	$	2.44		$	1.99		$	0.37
Diluted earnings per unit:
Income from continuing operations available to common unitholders per unit	$	2.42		$	0.51		$	0.00
Income from discontinued operations per common unit ⁽²⁾	—			1.43			0.37
Net income available to common unitholders per unit	$	2.42		$	1.94		$	0.37

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(1)	Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs.


(2)	The Operating Partnership adopted ASU 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” for additional information). As a result, properties classified as held for sale and/or disposed of subsequent to January 1, 2015 that do not represent a strategic shift are no longer presented as discontinued operations.

Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common units, including stock options, RSUs and other securities are considered in our diluted earnings per share calculation for the years ended December 31, 2015 and 2014, because we reported income from continuing operations attributable to common unitholders in the respective periods and the effect was dilutive. Additionally, for the year ended December 31, 2014, contingently issuable shares included the impact of the 4.25% Exchangeable Notes prior to their maturity and settlement in November 2014. For the year ended December 31, 2013, contingently issuable shares were not considered in our diluted earnings per share calculation because we reported losses from continuing operations attributable to common stockholders and the effect was anti dilutive. Certain market measure-based RSUs are not included in dilutive securities as of December 31, 2015 and 2014 as not all performance metrics had been met by the end of the applicable reporting periods.

See Note 13 “Share-Based Compensation” for additional information regarding the stock options and other share-based compensation.