EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of our common shares of beneficial interest (“Common Shares”) outstanding during the period. We have issued restricted stock units (“RSUs”) under our 2015 Incentive Plan, which could have a dilutive effect on our earnings per share upon exercise of the RSUs. Other than the issuance of RSUs, we have no outstanding options, warrants, convertible stock or other contractual obligations requiring issuance of additional shares that would result in 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. The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the condensed consolidated financial statements for the three months ended July 31, 2018 and 2017:



	(in thousands, except per share data)
	Three Months Ended July 31,
	2018			2017
NUMERATOR
Income (loss) from continuing operations – controlling interests	$	2,405		$	(13,651	)
Income from discontinued operations – controlling interests	511			2,387
Net income (loss) attributable to controlling interests	2,916			(11,264		)
Dividends to preferred shareholders	(1,705		)	(2,286		)
Redemption of preferred shares	—			—
Numerator for basic earnings (loss) per share – net income available to common shareholders	1,211			(13,550		)
Noncontrolling interests – Operating Partnership	135			(1,644		)
Numerator for diluted earnings (loss) per share	$	1,346		$	(15,194	)
DENOMINATOR
Denominator for basic earnings per share weighted average shares	119,245			120,421
Effect of redeemable operating partnership units	14,026			15,128
Denominator for diluted earnings per share	133,271			135,549
Earnings (loss) per common share from continuing operations – basic and diluted	$	0.01		$	(0.13	)
Earnings per common share from discontinued operations – basic and diluted	—			0.02
NET EARNINGS (LOSS) PER COMMON SHARE – BASIC & DILUTED	$	0.01		$	(0.11	)

Performance-based restricted stock awards of 248,000 and 115,000 for the three months ended July 31, 2018 and 2017, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share plus the average unearned compensation were greater than the average market price of the common stock for the periods presented and, therefore, were anti-dilutive. Refer to Note 13 - Share-Based Compensation for discussion of the terms for these awards.