The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013

Income from continuing operations	$ 17,122	$ 14,429	$ 52,399	$ 40,755

Less net income allocated to participating securities:
Nonforfeitable dividends on participating securities	(123)	(93)	(343)	(282)
Allocation of undistributed income to participating securities	—	(2)	—	(2)
Total net income allocated to participating securities	(123)	(95)	(343)	(284)

Less net income allocated to preferred stockholders:
Preferred stock dividends	(818)	(818)	(2,454)	(2,454)
Total net income allocated to preferred stockholders	(818)	(818)	(2,454)	(2,454)
Income from continuing operations available to common stockholders	16,181	13,516	49,602	38,017
Discontinued operations:
Income from discontinued operations	—	238	—	805
Gain on sale of real estate, net	—	2,619	—	1,605
Total net income from discontinued operations	—	2,857	—	2,410
Net income available to common stockholders	16,181	16,373	49,602	40,427

Effect of dilutive securities:
Convertible preferred securities	818	818	2,454	2,454
Net income for diluted net income per share	$ 16,999	$ 17,191	$ 52,056	$ 42,881

Shares for basic net income per share	34,605	34,553	34,596	32,625
Effect of dilutive securities:
Stock options	24	27	24	32
Convertible preferred securities	2,000	2,000	2,000	2,000
Shares for diluted net income per share	36,629	36,580	36,620	34,657

Basic net income per share	$ 0.47	$ 0.47	$ 1.43	$ 1.24
Diluted net income per share (1)	$ 0.46	$ 0.47	$ 1.42	$ 1.24

(1) For the three and nine months ended September 30, 2014 and 2013, the participating securities have been excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive.