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27
Year Ended December 31,
2013 2012 2011
(Amounts in thousands, except per share data)
N
et income $ 1,057,531 $ 943,035 $ 836,459
Adjust for amounts not included in FFO:
Depreciation and amortization, including discontinued
operations 387,402 358,103 358,525
Depreciation from unconsolidated real estate
investments 75,458 75,648 64,677
Gains on sale of real estate investments, including our equity
share (4,120) (14,778) (12,797)
FFO allocable to equity holders 1,516,271 1,362,008 1,246,864
Less allocation of FFO to:
Noncontrolling equity interests (7,275) (6,828) (15,539)
Preferred shareholders - distributions (204,312) (205,241) (224,877)
Preferred shareholders - redemptions - (61,696) (35,585)
Restricted share unitholders (5,173) (4,247) (2,817)
FFO allocable to common shares $ 1,299,511 $ 1,083,996 $ 968,046
Diluted weighted average common shares 172,688 171,664 170,750
FFO per share $ 7.53 $ 6.31 $ 5.67
In addition to FFO, we often discuss “Core FFO” per share which is also a non-GAAP measure
that represents FFO per share, adjusted to exclude the impact of (i) foreign currency exchange gains and
losses, representing gains of $17.1 million and $8.9 million in 2013 and 2012, respectively, and a loss of
$7.3 million for 2011, (ii) the impact of EITF D-42, including our equity share from PSB, representing
charges totaling $68.9 million and $32.6 million for 2012 and 2011, respectively, (none for 2013) and (iii)
other items. We believe Core FFO is a helpful measure in understanding our ongoing earnings and cash
flow. We also believe that the analyst community, likewise, reviews our Core FFO and Core FFO per
share (or similar measures using different terminology). Core FFO is not a substitute for net income,
earnings per share or cash flow from operations. Because other REITs may not compute Core FFO in the
same manner as we do, may not use the same terminology, or may not present such a measure, Core FFO
may not be comparable among REITs.
The following table reconciles FFO per share to Core FFO per share:
Year Ended December 31, Year Ended December 31,
Percentage
Percentage
2013 2012 Change 2012 2011 Change
FFO per share $ 7.53 $ 6.31 19.3% $ 6.31 $ 5.67 11.3%
Eliminate the per share impact of
items excluded from Core FFO:
Foreign currency exchange
(gain) loss (0.10) (0.05) (0.05) 0.04
Application of EITF D-42 - 0.40 0.40 0.19
Other items 0.01 0.02 0.02 0.03
Core FFO per share $ 7.44 $ 6.68 11.4% $ 6.68 $ 5.93 12.6%