Income Per Share and Partnership Unit

3 Months Ended

Mar. 31, 2020

NOTE 10. INCOME PER SHARE AND PARTNERSHIP UNIT

Income per share and unit has been computed using the two-class method, which is computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares of common stock outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both shares of common stock and participating securities based on the weighted average shares outstanding during the period. Classification of the Company's unvested restricted stock, which contain rights to receive nonforfeitable dividends, are deemed participating securities under the two-class method. Under the two-class method, earnings attributable to unvested restricted shares are deducted from income from continuing operations in the computation of net income attributable to common stockholders.

The table below is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share and unit computed using the two-class method (dollars in thousands):

	Three Months Ended March 31,
	2020			2019
Basic and diluted (loss) income:
(Loss) income from continuing operations	$	(15,847	)	$	43,578
Less: dividends paid to preferred stockholders		(2,588	)		(2,588	)
Less: dividends attributable to unvested restricted stock		(207	)		(272	)
Net (loss) income attributable to common stockholders used in basic and diluted (loss) income per share	$	(18,642	)	$	40,718

Basic weighted average shares of common stock outstanding:
Weighted average shares of common stock outstanding		102,551,315			85,916,656
Less: unvested weighted average shares of restricted stock		(321,168	)		(419,563	)
Basic weighted average shares of common stock outstanding		102,230,147			85,497,093
Net (loss) income per share attributable to common stockholders - basic	$	(0.18	)	$	0.48

Diluted weighted average shares of common stock outstanding: ⁽¹⁾
Plus: unvested market-based awards		—			7,804
Diluted weighted average shares of common stock outstanding		102,230,147			85,504,897
Net (loss) income per share attributable to common stockholders - diluted	$	(0.18	)	$	0.48

Potentially dilutive shares of common stock
Unvested shares of restricted stock, less shares assumed repurchased at market		133,839			132,744
Unvested shares of market-based awards		377,449			—

⁽¹⁾	Assumes the most dilutive issuance of potentially issuable shares between the two-class and treasury stock method unless the result would be anti-dilutive.

The Corporation intends to satisfy its exchange obligation for the principal amount of the 2021 Convertible Notes to the note holders entirely in cash; therefore, the "if-converted" method does not apply and the treasury stock method is being used. For the three months ended March 31, 2020 and 2019, the Corporation’s average stock price was below the conversion price, resulting in zero potentially dilutive shares related to the conversion spread of the 2021 Convertible Notes.