| Reconciliation of Numerator and Denominator used in Computation of Basic and Diluted Net Income Per Share |
Net income per share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common stock, which contain rights to receive non‑forfeitable dividends, as participating securities requiring the two‑class method of computing net income per share. Diluted net income per share of common stock further considers the effect of potentially dilutive shares of common stock outstanding during the period. The OP Units held by non-controlling interests represent potentially dilutive securities as the OP Units may be exchanged for cash or, at the Company’s election, shares of the Company’s common stock on a one-for-one basis.
The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share (dollars in thousands):
|
(dollar amounts in thousands) |
|
Three months ended September 30, 2018 |
|
|
Period from
June 25, 2018 to September 30, 2018 |
|
|
Numerator for basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,707 |
|
|
$ |
8,029 |
|
|
Less: net income attributable to non-controlling interests |
|
|
(2,383 |
) |
|
|
(2,482 |
) |
|
Less: net income allocated to unvested restricted common stock |
|
|
(155 |
) |
|
|
(155 |
) |
|
Net income available for common stockholders: basic |
|
|
5,169 |
|
|
|
5,392 |
|
|
Net income attributable to non-controlling interests |
|
|
2,383 |
|
|
|
2,482 |
|
|
Net income available for common stockholders: diluted |
|
$ |
7,552 |
|
|
$ |
7,874 |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
43,056,044 |
|
|
|
42,928,750 |
|
|
Less: weighted average number of shares of unvested restricted common stock |
|
|
(691,290 |
) |
|
|
(691,290 |
) |
|
Weighted average shares outstanding used in basic net income per share |
|
|
42,364,754 |
|
|
|
42,237,460 |
|
|
Effects of dilutive securities: (1) |
|
|
|
|
|
|
|
|
|
OP Units |
|
|
19,056,552 |
|
|
|
19,056,552 |
|
|
Unvested restricted common stock |
|
|
51,369 |
|
|
|
48,266 |
|
|
Weighted average shares outstanding used in diluted net income per share |
|
|
61,472,675 |
|
|
|
61,342,278 |
|
|
(1) |
Assumes the most dilutive issuance of potentially issuable shares between the two-class and treasury stock method unless the result would be anti-dilutive. |
|