Earnings Per Share

9 Months Ended

Sep. 30, 2019

Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is calculated by dividing net income available to common stockholders that has been adjusted for dilutive securities, by the weighted-average number of common shares outstanding including dilutive securities.

Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested share-based compensation (participating securities) have been excluded, as applicable, from net income or loss available to common stockholders used in the basic and diluted earnings per share calculations.

The following is a reconciliation of the calculation of basic and diluted earnings per share (in thousands, except share and per share data):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Numerator:
Net income attributable to common stockholders	$	11,529		$	31,443	$	49,434		$	63,790
Dividends declared on unvested share-based compensation	(31		)	—		(101		)	—
Net income available to common stockholders	$	11,498		$	31,443	$	49,333		$	63,790
Denominator:
Weighted-average number of common shares outstanding—basic	201,448,348			208,758,945		202,218,646			204,520,637
Effect of dilutive securities:
Unvested restricted common stock	102,309			221,018		59,793			212,051
Shares related to unvested PSUs	441,632			617,074		404,149			617,074
Weighted-average number of common shares outstanding—diluted	201,992,289			209,597,037		202,682,588			205,349,762
Earnings per share:
Net income per share available to common stockholders—basic	$	0.06		$	0.15	$	0.24		$	0.31
Diluted earnings per share available to common stockholders—diluted	$	0.06		$	0.15	$	0.24		$	0.31

The common OP units held by the noncontrolling interest holders have been excluded from the denominator of the diluted earnings per share calculation as there would be no effect on the amounts since the common OP units' share of income or loss would also be added or subtracted to derive net income (loss) available to common stockholders.