Earnings Per Share

The two-class method is used to determine earnings per share because unvested restricted shares and unvested LTIP units are considered to be participating shares. The LTIP units held by the non-controlling interest holders, which may be converted to common shares of beneficial interest, have been excluded from the denominator of the diluted earnings per share calculation as there would be no effect on the amounts since limited partners' share of income or loss would also be added back to net income or loss. Unvested restricted shares, unvested long-term incentive plan units and unvested Class A Performance LTIP units that could potentially dilute basic earnings per share in the future would not be included in the computation of diluted loss per share, for the periods where a loss has been recorded, because they would have been anti-dilutive for the periods presented. The following is a reconciliation of the amounts used in calculating basic and diluted net income per share (in thousands, except share and per share data):



	For the three months ended						For the nine months ended
	September 30,						September 30,
	2017			2016			2017			2016
Numerator:
Net income attributable to common shareholders	$	14,392		$	13,355		$	24,055		$	28,823
Dividends paid on unvested shares and units	(64		)	(48		)	(171		)	(141		)
Undistributed earnings allocated to unvested shares and units	—			—			—			—
Net income attributable to common shareholders	$	14,328		$	13,307		$	23,884		$	28,682
Denominator:
Weighted average number of common shares - basic	39,298,974			38,307,382			38,731,900			38,293,704
Unvested shares	251,520			260,080			228,555			226,985
Weighted average number of common shares - diluted	39,550,494			38,567,462			38,960,455			38,520,689
Basic income per Common Share:
Net income attributable to common shareholders per weighted average basic common share	$	0.36		$	0.35		$	0.62		$	0.75
Diluted income per Common Share:
Net income attributable to common shareholders per weighted average diluted common share	$	0.36		$	0.35		$	0.61		$	0.74