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 and Series D Convertible Preferred Units ("Series D preferred units"), which could have a dilutive effect on our earnings per share upon exercise of the RSUs or upon conversion of the Series D preferred units (refer to Note 4 for further discussion of the preferred units). Other than the issuance of RSUs and Series D preferred units, 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.

For the three months ended March 31, 2019 and 2018, respectively, 38,000 and 10,000 performance-based restricted stock awards and RSUs 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.

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 March 31, 2019 and 2018:



	(in thousands, except per share data)
	Three Months Ended March 31,
	2019			2018
NUMERATOR
Income (loss) from continuing operations – controlling interests	$	(4,698	)	$	(5,813	)
Income (loss) from discontinued operations – controlling interests	—			12,417
Net income (loss) attributable to controlling interests	(4,698		)	6,604
Dividends to preferred shareholders	(1,705		)	(1,705		)
Numerator for basic earnings (loss) per share – net income available to common shareholders	(6,403		)	4,899
Noncontrolling interests – Operating Partnership	(743		)	580
Numerator for diluted earnings (loss) per share	$	(7,146	)	$	5,479
DENOMINATOR
Denominator for basic earnings per share weighted average shares	11,763			11,972
Effect of redeemable operating partnership units	1,367			1,424
Denominator for diluted earnings per share	13,130			13,396
Earnings (loss) per common share from continuing operations – basic and diluted	$	(0.54	)	$	(0.63	)
Earnings (loss) per common share from discontinued operations – basic and diluted	—			1.04
NET EARNINGS (LOSS) PER COMMON SHARE – BASIC & DILUTED	$	(0.54	)	$	0.41