EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2019

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") 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 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, 2019, performance-based restricted stock awards of 37,822 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 shares for the periods presented and, therefore, were anti-dilutive. Refer to Note 16 - Share-Based Compensation for discussion of the terms for these awards.

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 year ended December 31, 2019, the transition period ended December 31, 2018, and the fiscal years ended April 30, 2018 and 2017:



	(in thousands, except per share data)
	For Year Ended			For Period Ended			For Year Ended
	December 31, 2019			December 31, 2018			April 30, 2018			April 30, 2017
NUMERATOR
Income (loss) from continuing operations – controlling interests	$	78,669		$	(4,908	)	$	(30,266	)	$	(24,473	)
Income (loss) from discontinued operations – controlling interests	—			510			147,054			67,820
Net income (loss) attributable to controlling interests	78,669			(4,398		)	116,788			43,347
Dividends to preferred shareholders	(6,821		)	(4,547		)	(8,569		)	(10,546		)
Redemption of preferred shares	—			—			(3,657		)	(1,435		)
Numerator for basic earnings per share – net income available to common shareholders	71,848			(8,945		)	104,562			31,366
Noncontrolling interests – Operating Partnership	6,752			(1,032		)	12,702			4,059
Dividends to preferred unitholders	537			—			—			—
Numerator for diluted earnings (loss) per share	$	79,137		$	(9,977	)	$	117,264		$	35,425
DENOMINATOR
Denominator for basic earnings per share weighted average shares	11,744			11,937			11,998			12,117
Effect of redeemable operating partnership units	1,237			1,387			1,462			1,613
Effect of Series D preferred units	193			—			—			—
Effect of diluted restricted stock awards and restricted stock units	8			—			—			—
Denominator for diluted earnings per share	13,182			13,324			13,460			13,730

Earnings (loss) per common share from continuing operations – basic	$	6.06		$	(0.79	)	$	(3.54	)	$	(3.01	)
Earnings (loss) per common share from discontinued operations – basic	—			0.04			12.25			5.59
NET EARNINGS (LOSS) PER COMMON SHARE – BASIC	$	6.06		$	(0.75	)	$	8.71		$	2.58

Earnings (loss) per common share from continuing operations – diluted	$	6.00		$	(0.79	)	$	(3.54	)	$	(3.01	)
Earnings (loss) per common share from discontinued operations – diluted	—			0.04			12.25			5.59
NET EARNINGS (LOSS) PER COMMON SHARE – DILUTED	$	6.00		$	(0.75	)	$	8.71		$	2.58