BENEFICIARIES’ EQUITY OF THE PARENT COMPANY

Earnings per Share (EPS)

The following tables detail the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):



	Three-month periods ended September 30,
	2013						2012
	Basic			Diluted			Basic			Diluted
Numerator
Income from continuing operations	$	11,174		$	11,174		$	5,500		$	5,500
Net (income) from continuing operations attributable to non-controlling interests	(106		)	(106		)	(49		)	(49		)
Amount allocable to unvested restricted shareholders	(85		)	(85		)	(95		)	(95		)
Preferred share dividends	(1,725		)	(1,725		)	(2,785		)	(2,785		)
Income from continuing operations available to common shareholders	9,258			9,258			2,571			2,571
Income (Loss) from discontinued operations	(86		)	(86		)	11,589			11,589
Discontinued operations attributable to non-controlling interests	1			1			(211		)	(211		)
Discontinued operations attributable to common shareholders	(85		)	(85		)	11,378			11,378
Net income attributable to common shareholders	$	9,173		$	9,173		$	13,949		$	13,949
Denominator
Weighted-average shares outstanding	156,703,348			156,703,348			143,424,485			143,424,485
Contingent securities/Share based compensation	—			1,288,734			—			703,525
Total weighted-average shares outstanding	156,703,348			157,992,082			143,424,485			144,128,010
Earnings per Common Share:
Income from continuing operations attributable to common shareholders	$	0.06		$	0.06		$	0.02		$	0.02
Discontinued operations attributable to common shareholders	—			—			0.08			0.08
Net income attributable to common shareholders	$	0.06		$	0.06		$	0.10		$	0.10




	Nine-month periods ended September 30,
	2013						2012
	Basic			Diluted			Basic			Diluted
Numerator
Income (Loss) from continuing operations	$	18,568		$	18,568		$	(8,350	)	$	(8,350	)
Net (income) loss from continuing operations attributable to non-controlling interests	(147		)	(147		)	335			335
Amount allocable to unvested restricted shareholders	(278		)	(278		)	(286		)	(286		)
Preferred share dividends	(5,175		)	(5,175		)	(7,832		)	(7,832		)
Preferred share redemption charge	—			—			(2,090		)	(2,090		)
Income (Loss) from continuing operations available to common shareholders	12,968			12,968			(18,223		)	(18,223		)
Income from discontinued operations	3,619			3,619			41,577			41,577
Discontinued operations attributable to non-controlling interests	(48		)	(48		)	(760		)	(760		)
Discontinued operations attributable to common shareholders	3,571			3,571			40,817			40,817
Net income attributable to common shareholders	$	16,539		$	16,539		$	22,594		$	22,594
Denominator
Weighted-average shares outstanding	151,933,441			151,933,441			143,182,911			143,182,911
Contingent securities/Share based compensation	—			1,209,384			—			—
Total weighted-average shares outstanding	151,933,441			153,142,825			143,182,911			143,182,911
Earnings per Common Share:
Income (Loss) from continuing operations attributable to common shareholders	$	0.09		$	0.09		$	(0.13	)	$	(0.13	)
Discontinued operations attributable to common shareholders	0.02			0.02			0.29			0.29
Net income attributable to common shareholders	$	0.11		$	0.11		$	0.16		$	0.16

Redeemable common limited partnership units totaling 1,763,739 and 2,657,721 as of September 30, 2013 and 2012, respectively, were excluded from the diluted earnings per share computations because their effect would have been anti-dilutive.

The contingent securities/share based compensation impact is calculated using the treasury stock method and relates to employee awards settled in shares of the Parent Company. The effect of these securities is anti-dilutive for periods that the Parent Company incurs a net loss from continuing operations available to common shareholders and therefore is excluded from the dilutive earnings per share calculation in such periods.

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 nine months ended September 30, 2013 and 2012, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted shares issued to the Company’s executives and other employees under the 1997 Plan.

Common and Preferred Shares

On September 10, 2013, the Parent Company declared a distribution of $0.15 per common share, totaling $23.8 million, which was paid on October 18, 2013 to shareholders of record as of October 4, 2013. On September 10, 2013, the Parent Company declared distributions on its Series E Preferred Shares to holders of record as of September 30, 2013. These shares are entitled to a preferential return of 6.90% per annum on the $25.00 per share liquidation preference. Distributions paid on October 15, 2013 to holders of Series E Preferred Shares totaled $1.7 million.

On April 10, 2013, the Parent Company closed a public offering of 12,650,000 common shares, inclusive of 1,650,000 common shares issued upon exercise by the underwriters of the option granted to them to purchase additional shares. The Parent Company contributed the net proceeds from the sale of shares, amounting to $181.7 million after deducting underwriting discounts and commissions and other offering expenses, to the Operating Partnership in exchange for partnership units of the Operating Partnership. The Operating Partnership continues to use the net proceeds for working capital, capital expenditures and other general corporate purposes, which may include acquisitions, developments and the repayment, repurchase and refinancing of debt.

In March 2010, the Parent Company commenced a continuous equity offering program (the “Offering Program”), that provided for the Parent Company's sale, from time to time until the Offering Program's expiration on March 10, 2013, of up to an aggregate of 15,000,000 common shares in amounts and at times determined by the Parent Company. The Parent Company determined to sell shares under the Offering Program based on a variety of factors, including the trading price of its common shares, overall market conditions and the Parent Company's needs for and assessment of alternative sources of capital. Under the Offering Program, the Parent Company engaged sales agents, who received compensation of up to 2% of the gross sales price per share sold. From January 1, 2013 through the expiration of the Offering Program, the Parent Company did not sell any shares under the Offering Program. From the inception of the Offering Program in March 2010 through its expiration, the Parent Company sold an aggregate of 6,421,553 common shares under the Offering Program at an average sales price of $12.50 per share. The Parent Company contributed the net proceeds from the sale of its shares to the Operating Partnership in exchange for the issuance of 6,421,553 common partnership units to the Parent Company. The Operating Partnership used the net proceeds contributed to it by the Parent Company to repay balances on credit facilities and for general corporate purposes.

Common Share Repurchases

The Parent Company maintains a share repurchase program under which it may repurchase its common shares from time to time in accordance with limits set by the Board of Trustees.

The Parent Company did not repurchase any shares under the share repurchase program during the nine-month period ended September 30, 2013. As of September 30, 2013, the Parent Company may purchase an additional 539,200 shares under the current program limits.

Repurchases may be made from time to time in the open market or in privately negotiated transactions, subject to market conditions and compliance with legal requirements. The share repurchase program does not contain any time limitation and does not obligate the Parent Company to repurchase any shares. The Parent Company may discontinue the program at any time.