EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2021

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”) and incentive stock options (“ISOs”) 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 ISOs or upon conversion of the Series D preferred units (refer to Note 4 for further discussion of the Series D preferred units). Other than the issuance of RSUs, ISOs, 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.

Performance-based RSUs of 46,218 and 37,822 for the three months ended March 31, 2021 and 2020, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive.

For the three months ended March 31, 2021 and 2020, Series D preferred units of 228,000 were excluded from the calculation of diluted earnings per share because they were anti-dilutive. For the three months ended March 31, 2020 and 2020, time-based RSUs of 19,000 and 16,000, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive.

For the three months ended March 31, 2021, weighted average stock options of 43,629 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 common shares for the periods ended 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, 2021 and 2020:


	(in thousands, except per share data)
	Three Months Ended March 31,
	2021		2020
NUMERATOR


Net income (loss) attributable to controlling interests	$	(4,867)	$	(7,007)
Dividends to preferred shareholders	(1,607)		(1,705)
Redemption of preferred shares	—		273
Numerator for basic earnings (loss) per share – net income available to common shareholders	(6,474)		(8,439)
Noncontrolling interests – Operating Partnership	(469)		(692)
Dividends to preferred unitholders	160		160
Numerator for diluted earnings (loss) per share	$	(6,783)	$	(8,971)
DENOMINATOR
Denominator for basic earnings per share weighted average shares	13,078		12,103
Effect of redeemable operating partnership units	957		1,054


Denominator for diluted earnings per share	14,035		13,157



NET EARNINGS (LOSS) PER COMMON SHARE – BASIC	$	(0.49)	$	(0.69)



NET EARNINGS (LOSS) PER COMMON SHARE – DILUTED	$	(0.49)	$	(0.69)