Income (Loss) per Share (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method

The following is a reconciliation of weighted average basic and diluted shares outstanding used in the calculation of income (loss) per share of Common Stock:


	(In thousands, except per-share figures)	Three-month periods ended September 30,				Nine-month periods ended September 30,
		2020		2019		2020		2019
Numerator:
	Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture	$	23,605	$	26,086	$	(105,462)	$	75,089
	Loss from unconsolidated joint venture	(120)		—		(120)		—
	Gain on sale of real estate, net	3,261		—		3,261		4

	Operating (loss) income	26,746		26,086		(102,321)		75,093
	Interest expense	29,879		28,799		90,608		83,166
	Change in fair value of net assets of consolidated VIEs from mortgage-backed pools	—		591		—		1,316
	Less: loss on extinguishment of debt	(518)		(15)		(6,674)		(84)
	Gains on land condemnation	49		—		528		747

	Net loss	(3,602)		(2,137)		(199,075)		(6,094)
	Consolidated net loss attributable to non-controlling interests	108		59		3,515		138

	Net loss attributable to the Company	(3,494)		(2,078)		(195,560)		(5,956)

	Dividends declared to preferred stockholders	(35,909)		(29,446)		(104,601)		(82,527)
	Net loss attributable to unvested restricted stock	(96)		(5)		(109)		(14)

	Net loss attributable to common stockholders	$	(39,499)	$	(31,529)	$	(300,270)	$	(88,497)

Denominator:
	Weighted average number of shares of Common Stock - basic	49,689		44,703		48,351		43,703

	Effect of dilutive securities: (D)	—		—		—		—

	Weighted average number of shares of Common Stock - basic and diluted	49,689		44,703		48,351		43,703

	Net loss per share of Common Stock attributable to
	common stockholders, basic and diluted	$	(0.79)	$	(0.71)	$	(6.21)	$	(2.02)

(A) The Company's outstanding Class A Units of the Operating Partnership (742 and 856 Units at September 30, 2020, and 2019, respectively) contain rights to distributions in the same amount per unit as for dividends declared on the Company's Common Stock. The impact of the Class A Unit distributions on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Class A Units based on dividends declared and the Class A Units' participation rights in undistributed earnings.

(B) The Company’s shares of Series A Preferred Stock outstanding accrue dividends at an annual rate of 6% of the stated value of $1,000 per share, payable monthly. The Company had 1,991 and 1,932 outstanding shares of Series A Preferred Stock at September 30, 2020 and 2019, respectively and 103 outstanding shares of Series A1 Preferred Stock at September 30, 2020. The Company's shares of Series M preferred stock, or mShares, accrue dividends at an escalating rate of 5.75% in year one to 7.50% in year eight and thereafter. The Company had 91 and 90 mShares outstanding at September 30, 2020 and 2019, respectively. The Company's shares of Series M1 preferred stock accrue dividends at an escalating rate of 6.1% in year one to 7.1% in year ten and thereafter. The Company had 13 shares of Series M1 preferred stock outstanding at September 30, 2020.

(C) The Company's outstanding unvested restricted share awards (548 and 20 shares of Common Stock at September 30, 2020 and 2019, respectively) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted

share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings. Given the Company's unvested restricted share awards are defined as participating securities, the dividends declared for that period are adjusted in determining the calculation of loss per share of Common Stock.

(D) Potential dilution from (i) warrants outstanding from issuances of Units from our Series A Preferred Stock offerings that are potentially exercisable into 27,767 shares of Common Stock; (ii) 65 Class B Units; (iii) 548 shares of unvested restricted common stock; (iv) 54 outstanding Restricted Stock Units; and (v) 273 Performance-based Restricted Stock Units are excluded from the diluted shares calculations because the effect was antidilutive. Class A Units were excluded from the denominator because earnings were allocated to non-controlling interests in the calculation of the numerator.