Earnings Per Share

12 Months Ended

Dec. 31, 2014

17. Earnings Per Share

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share:

	Year Ended December 31, 2014			Year Ended December 31, 2013		Year Ended December 31, 2012
Numerator:
Net income/(loss) attributable to ZAIS Financial Corp. common stockholders (Basic)	$	26,741,970		$	6,657,728	$	19,433,802
Effect of dilutive securities:
Net income allocated to non-controlling interests		3,109,760			880,358		362,324
Exchangeable Senior Notes
Interest expense		3,240,561			—		—
Gain on derivative instruments		(256,068	)		—		—
Total – Exchangeable Senior Notes		2,984,493			—		—
Net income/(loss) available to stockholders, after effect of dilutive securities	$	32,836,223		$	7,538,086	$	19,796,126
Denominator:
Weighted average number of shares of common stock		7,970,886			7,273,366		2,724,252
Effect of dilutive securities:
Weighted average number of OP units		926,914			926,914		49,593
Weighted average number of shares convertible under Exchangeable Senior Notes		1,779,560			—		—
Diluted weighted average shares outstanding		10,677,360			8,200,280		2,773,845
Net income per share applicable to ZAIS Financial Corp. common stockholders – Basic	$	3.35		$	0.92	$	7.13
Net income per share applicable to ZAIS Financial Corp. common stockholders – Diluted	$	3.08		$	0.92	$	7.13

The entire disclosure for earnings per share.