EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period. We apply the two-class method of computing EPS, which requires the calculation of separate EPS amounts for participating securities. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Any anti-dilutive securities are excluded from the basic EPS calculation.

Diluted EPS is computed by dividing net income (loss) available to common stockholders, as adjusted for dilutive securities, by the weighted-average number of shares of Common Stock outstanding plus dilutive securities. Any anti-dilutive securities are excluded from the diluted EPS calculation. Potentially dilutive shares include unvested restricted share grants and unvested performance share grants, calculated using the treasury stock method or the if-converted method, shares of Common Stock issuable upon conversion of convertible debt and shares of Common Stock issuable upon conversion of Common Units of our Operating Partnership.

Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net (loss) income attributable to common stockholders	$	(4,272)	$	(5,438)	$	24,461	$	(11,419)
Adjusted for:
Allocation of income to participating securities	—		—		(231)		—
Net (loss) income allocated to common stockholders - basic	(4,272)		(5,438)		24,230		(11,419)
Adjusted for:
Interest rate effect on assumed conversion of convertible debt	—		—		3,244		—
Adjustment for income allocated to dilutive participating securities	—		—		3,864		—
Net (loss) income allocated to common stockholders - diluted	$	(4,272)	$	(5,438)	$	31,338	$	(11,419)

Denominator:
Weighted average common shares outstanding - basic	106,033		105,650		105,891		105,510
Adjusted for:
Dilutive effect of equity-based compensation awards	—		—		2,551		—
Effect of assumed conversion of convertible debt	—		—		25,614		—
Effect of assumed conversion of Operating Partnership units	—		—		15,947		—
Weighted average common shares outstanding - diluted	106,033		105,650		150,003		105,510

Net (loss) income per share available to common stockholders:
Basic	$	(0.04)	$	(0.05)	$	0.23	$	(0.11)
Diluted	$	(0.04)	$	(0.05)	$	0.21	$	(0.11)

The effect of the conversion of the Convertible Notes and the Common Units of the Operating Partnership has been included in the denominator of diluted earnings per share for the nine months ended September 30, 2024. Due to the net loss attributable to common stockholders for basic earnings per share for the three month periods ended September 30, 2024 and 2023, and the nine month period ended September 30, 2023, equity shares computed under the treasury stock method, shares issuable upon conversion of the Convertible Notes, and the effect of the conversion of Common Units of the Operating Partnership have been excluded from the number of shares used in calculating diluted loss per share as their inclusion would be antidilutive.