EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. We have issued restricted stock units (“RSUs”) and incentive stock

options (“ISOs”) under our 2015 Incentive Plan, Series D Convertible Preferred Units (“Series D preferred units”), and Series E Convertible Preferred Units (“Series E preferred units”), which could have a dilutive effect on our earnings per share upon exercise of the RSUs, ISOs, or upon conversion of the Series D or Series E preferred units (refer to Note 4 for further discussion of the preferred units). Other than the issuance of RSUs, ISOs, Series D preferred units, and Series E preferred units, we have no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of earnings. Under the terms of the Operating Partnership’s Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”). Upon the exercise of Exchange Rights, and in our sole discretion, we may issue common shares in exchange for Units on a one-for-one-basis.

For the year ended December 31, 2022, Units of 978,000, Series E preferred units of 2.2 million, as converted, Series D preferred units of 228,000, as converted, stock options of 28,000, time-based RSUs of 10,000, and performance-based restricted stock awards of 30,000 were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Including these items would have improved earnings per share.

For the year ended December 31, 2021, Units of 899,000, Series E preferred units of 729,000, as converted, Series D preferred units of 228,000, as converted, stock options of 30,000, time-based RSUs of 15,000, and performance-based restricted stock awards of 32,000, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Including these items would have improved earnings per share.

For the year ended December 31, 2020, Units of 1.0 million, Series D preferred Units of 228,000, as converted, stock options of 86,000, time-based RSUs of 13,000, and performance-based restricted stock awards of 27,000 were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Including these items would have improved earnings per share.

The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the consolidated financial statements for the years ended December 31, 2022, 2021, and 2020:


	(in thousands, except per share data)
	Year Ended December 31,
	2022		2021		2020
NUMERATOR


Net income (loss) attributable to controlling interests	(14,109)		(29)		4,441
Dividends to preferred shareholders	(6,428)		(6,428)		(6,528)
Redemption of preferred shares	—		—		297
Numerator for basic earnings per share – net income (loss) available to common shareholders	(20,537)		(6,457)		(1,790)
Noncontrolling interests – Operating Partnership and Series E preferred units	(4,299)		(2,806)		(212)
Dividends to preferred unitholders	640		640		640
Numerator for diluted earnings (loss) per share	$	(24,196)	$	(8,623)	$	(1,362)
DENOMINATOR
Denominator for basic earnings (loss) per share weighted average shares	15,216		13,803		12,564




Denominator for diluted earnings (loss) per share	15,216		13,803		12,564







NET EARNINGS (LOSS) PER COMMON SHARE – BASIC AND DILUTED	$	(1.35)	$	(0.47)	$	(0.15)