|
11. Earnings per Common Share
The limited partners’ outstanding limited partnership units in the Operating Partnership (which may be converted to common shares of beneficial interest) have been excluded from the diluted earnings per share calculation as there would be no effect on the amounts since the limited partners’ share of income would also be added back to net income. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested restricted shares (participating securities) have been excluded, as applicable, from net income or loss attributable to common shareholders utilized in the basic and diluted earnings per share calculations. Net income or loss figures are presented net of noncontrolling interests in the earnings per share calculations. The weighted average number of OP units held by the noncontrolling interest was 894,000 for both the three and six months ended June 30, 2011.
For the three and six months ended June 30, 2011, diluted weighted average common shares do not include the impact of unvested compensation-related shares because the effect of these items on diluted earnings per share would be anti-dilutive. For the three and six months ended June 30, 2011, there were 1,120,830 anti-dilutive compensation-related shares outstanding.
The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data):
|
|
|
For the three
months ended, |
|
For the six
months ended, |
|
|
|
|
June 30, 2011 |
|
June 30, 2011 |
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
Net loss attributable to common shareholders |
|
$ |
(2,568 |
) |
$ |
(18,700 |
) |
|
Less: Dividends paid on unvested restricted shares |
|
(90 |
) |
(90 |
) |
|
Undistributed earnings attributable to unvested restricted shares |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
Net loss attributable to common shareholders |
|
$ |
(2,658 |
) |
$ |
(18,790 |
) |
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Weighted-average number of common shares - basic |
|
88,767,570 |
|
81,228,975 |
|
|
Unvested restricted shares (1) |
|
— |
|
— |
|
|
Weighted-average number of common shares - diluted |
|
88,767,570 |
|
81,228,975 |
|
|
|
|
|
|
|
|
|
Loss per share attributable to common shareholders - basic and diluted |
|
$ |
(0.03 |
) |
$ |
(0.23 |
) |
(1) Anti-dilutive for all periods presented.
Unvested restricted shares are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the three and six months ended June 30, 2011, no earnings representing nonforfeitable dividends were allocated to the unvested restricted shares issued, because the Company had a net loss for the three and six month periods ended June 30, 2011. |