Income Per Share and Per Unit

6 Months Ended

Jun. 30, 2024

12. Income Per Share and Per Unit

Income Per Share. The limited partners’ outstanding limited partnership units in the Operating Partnership (which may be redeemed for common stock upon notice from the limited partner and following our election to redeem the units for stock rather than cash) have been excluded from the diluted earnings per share calculation as there would be no effect on the amounts since the limited partners’ share of income or loss would also be added back to net income or loss. The shares of the Series B Preferred Stock, Series C

Preferred Stock and Series D Preferred Stock are not convertible into or exchangeable for any other property or securities of the Company, except upon the occurrence of a change of control, and have been excluded from the diluted earnings per share calculation as there would be no impact on the current controlling stockholders. The non-committed, unearned ESOP shares are treated as reducing the number of issued and outstanding common shares and similarly reducing the weighted average number of common shares outstanding. The unallocated ESOP shares have been excluded in the weighted average for the basic and diluted earnings per share computation. The computation of basic net income per share is presented below:


	Three Months Ended				Three Months Ended			Six Months Ended				Six Months Ended
	June 30, 2024				June 30, 2023			June 30, 2024				June 30, 2023
	(unaudited)				(unaudited)			(unaudited)				(unaudited)
Numerator
Net income	$	4,664,232			$	5,257,670		$	5,987,053			$	6,645,185
Less: Net income allocated to participating share awards		(52,283	)			(71,282	)		(76,480	)			(81,225	)
Net income attributable to non-controlling interest		(48,151	)			(130,798	)		(36,033	)			(105,838	)
Undeclared distributions to preferred stockholders		(1,994,313	)			(1,994,313	)		(3,988,625	)			(3,988,625	)
Net Income attributable to common stockholders for EPS computation	$	2,569,485			$	3,061,277		$	1,885,915			$	2,469,497


Denominator
Weighted average number common shares outstanding for basic EPS computation		19,431,455				18,712,452			19,395,528				18,658,538
Effect of dilutive participating securities:
Unvested restricted shares		—		(1)		2,646			—		(1)		—		(1)
Weighted average number common and common equivalent shares outstanding for diluted EPS computation		19,431,455				18,715,098			19,395,528				18,658,538


Basic net income per common share:
Undistributed income	$	0.13			$	0.16		$	0.10			$	0.13
Total basic	$	0.13			$	0.16		$	0.10			$	0.13

Diluted net income per common share:
Undistributed income	$	0.13			$	0.16		$	0.10			$	0.13
Total diluted	$	0.13			$	0.16		$	0.10			$	0.13

(1) Anti-dilutive, therefore not included.

The accounting for unvested share-based payment awards included in the calculation of earnings per share changed. Share-based awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are now participating securities and included in the computation of both basic and diluted earnings per share. Our grants of restricted stock awards to our employees

and directors are considered participating securities, and we have prepared our earnings per share calculations to include outstanding unvested restricted stock awards in the basic and diluted weighted average shares outstanding calculation.

Income Per Unit – The computation of basic net income per unit is presented below:


	Three Months Ended				Three Months Ended			Six Months Ended				Six Months Ended
	June 30, 2024				June 30, 2023			June 30, 2024				June 30, 2023
	(unaudited)				(unaudited)			(unaudited)				(unaudited)
Numerator
Net income	$	4,664,232			$	5,257,670		$	5,987,053			$	6,645,185
Less: Net income allocated to participating unit awards		(52,283	)			(71,282	)		(76,480	)			(81,225	)
Undeclared distributions to preferred unitholders		(1,994,313	)			(1,994,313	)		(3,988,625	)			(3,988,625	)
Net income attributable to unitholders for EPU computation	$	2,617,636			$	3,192,075		$	1,921,948			$	2,575,335


Denominator
Weighted average number of units outstanding for basic EPU computation		20,004,351				19,810,991			19,990,120				19,806,173
Effect of dilutive participating securities:
Unvested restricted units		—		(1)		2,646			—		(1)		—		(1)
Weighted average number of equivalent units outstanding for diluted EPU computation		20,004,351				19,813,637			19,990,120				19,806,173


Undistributed income	$	0.13			$	0.16		$	0.10			$	0.13
Total basic	$	0.13			$	0.16		$	0.10			$	0.13

Diluted net income per unit:
Undistributed income	$	0.13			$	0.16		$	0.10			$	0.13
Total diluted	$	0.13			$	0.16		$	0.10			$	0.13

(1) Anti-dilutive, therefore not included.