Earnings Per Share

9 Months Ended

Sep. 30, 2019

The following is a summary of the basic and diluted net income per share computation for the periods presented:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except share and per share data)	2019			2018			2019			2018
Net income attributable to common stockholders	$	6,860		$	177		$	25,272		$	7,826
Adjustments to net income attributable to common stockholders for common share equivalents	(176		)	(316		)	(510		)	(526		)
Adjusted net income attributable to common stockholders	$	6,684		$	(139	)	$	24,762		$	7,300

Basic and diluted net income per share attributable to common stockholders	$	0.08		$	—		$	0.30		$	0.11
Weighted average shares outstanding:
Basic	85,254,638			69,441,639			83,539,304			68,014,855
Diluted	86,202,582			69,441,639			84,487,248			68,417,253

Under current authoritative guidance for determining earnings per share, all unvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s unvested RSUs and unearned LTIP Units contain rights to receive distributions considered to be non-forfeitable, in certain limited circumstances, and therefore the Company applies the two-class method of computing earnings per share. The calculation of earnings per share above excludes the non-forfeitable distributions to the unvested RSUs and unearned LTIP Units from the numerator.

Diluted net income per share assumes the conversion of all Common Stock share equivalents into an equivalent number of shares of Common Stock, unless the effect is anti-dilutive. The Company considers unvested RSUs and LTIP Units to be common share equivalents. The following table shows common share equivalents on a weighted average basis that were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2019 and 2018:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Unvested RSUs	40,944	46,767	40,944	—
LTIP Units ⁽¹⁾	1,647,230	2,110,594	1,647,230	355,631
Total anti-dilutive common share equivalents	1,688,174	2,157,361	1,688,174	355,631

⁽¹⁾Weighted-average number of LTIP Units outstanding. There were 2,554,930 LTIP Units issued and outstanding under the 2018 OPP as of September 30, 2019 and September 30, 2018. The 3,013,933 LTIP Units issued under the 2015 OPP were forfeited as of June 2, 2018 since no LTIP Units were earned under the 2015 OPP. See Note 12 — Equity-Based Compensation for additional information on the 2018 OPP and 2015 OPP.

Conditionally issuable shares relating to the 2018 OPP award (see Note 12 — Equity-Based Compensation) are included in the computation of fully diluted EPS on a weighted average basis for the three and nine months ended September 30, 2019 and the nine months ended September 30, 2018 based on shares that would be issued if the balance sheet date were the end of the measurement period. No common share equivalents related to LTIP Units were included in the computation for the three months ended September 30, 2018 due to a loss in the period.