Life Storage, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share and Earnings Per Unit

Earnings Per Share and Earnings Per Unit

12 Months Ended

Dec. 31, 2021

Earnings Per Share and Earnings Per Unit

3. EARNINGS PER SHARE AND EARNINGS PER UNIT

The Company reports earnings per share and earnings per unit data in accordance with ASC Topic 260, “Earnings Per Share.” Under ASC Topic 260-10, unvested share-based payment awards that contain nonforfeitable 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. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method.

The following table sets forth the computation of basic and diluted earnings per common share of the Parent Company utilizing the two-class method.


	Year Ended December 31,
(amounts in thousands, except per share data)	2021		2020		2019
Numerator:
Net income attributable to common shareholders	$	249,317	$	151,571	$	258,699
Denominator:
Denominator for basic earnings per share - weighted average shares		78,425		71,055		69,876
Effect of Dilutive Securities:
Stock options and non-vested stock		183		123		104
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversion		78,608		71,178		69,980
Basic Earnings per common share attributable to common shareholders	$	3.18	$	2.13	$	3.70
Diluted Earnings per common share attributable to common shareholders	$	3.17	$	2.13	$	3.70

The following table sets forth the computation of basic and diluted earnings per common unit of the Operating Partnership utilizing the two-class method.


	Year Ended December 31,
(amounts in thousands, except per unit data)	2021		2020		2019
Numerator:
Net income attributable to common unitholders	$	249,317	$	151,571	$	258,699
Denominator:
Denominator for basic earnings per unit - weighted average units		78,425		71,055		69,876
Effect of Dilutive Securities:
Stock options and non-vested stock		183		123		104
Denominator for diluted earnings per unit - adjusted weighted average units and assumed conversion		78,608		71,178		69,980
Basic Earnings per common unit attributable to common unitholders	$	3.18	$	2.13	$	3.70
Diluted Earnings per common unit attributable to common unitholders	$	3.17	$	2.13	$	3.70

Not included in the effect of dilutive securities above are 133,660 unvested restricted shares for the year ended December 31, 2021; 159,228 unvested restricted shares for the year ended December 31, 2020; and 120,741 unvested restricted shares for the year ended December 31, 2019. The effects of including these securities would have been anti-dilutive.