Earnings per Share of Common Stock

12 Months Ended

Dec. 31, 2023

Earnings per Share of Common Stock

Earnings per Share of Common Stock

Note 21. Earnings per Share of Common Stock

The table below provides information on the basic and diluted EPS computations, including the number of shares of common stock used for purposes of these computations.

	Year Ended December 31,
(in thousands, except for share and per share amounts)	2023		2022		2021
Basic Earnings
Net income from continuing operations	$	351,245	$	159,551	$	117,301
Less: Income attributable to non-controlling interest		8,960		8,900		2,230
Less: Income attributable to participating shares		9,284		9,561		9,093
Basic earnings - continuing operations	$	333,001	$	141,090	$	105,978
Basic earnings - discontinued operations	$	(2,834)	$	43,612	$	42,673
Diluted Earnings
Net income from continuing operations	$	351,245	$	159,551	$	117,301
Less: Income attributable to non-controlling interest		8,960		8,900		2,230
Less: Income attributable to participating shares		9,284		9,561		9,093
Add: Expenses attributable to dilutive instruments		524		9,276		—
Diluted earnings - continuing operations	$	333,525	$	150,366	$	105,978
Diluted earnings - discontinued operations	$	(2,834)	$	43,612	$	42,673
Number of Shares
Basic — Average shares outstanding		146,841,594		106,878,139		68,511,578
Effect of dilutive securities — Unvested participating shares		1,725,432		10,315,819		149,328
Diluted — Average shares outstanding		148,567,026		117,193,958		68,660,906
EPS Attributable to RC Common Stockholders:
Basic - continuing operations	$	2.27	$	1.32	$	1.55
Basic - discontinued operations	$	(0.02)	$	0.41	$	0.62
Basic - total	$	2.25	$	1.73	$	2.17
Diluted - continuing operations	$	2.24	$	1.28	$	1.54
Diluted - discontinued operations	$	(0.02)	$	0.37	$	0.62
Diluted - total	$	2.22	$	1.65	$	2.16

In the table above, participating unvested RSUs were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above.

The Company adopted ASU 2020-06, Debt – Debt with Conversion and other Options and Derivatives and Hedging-Contracts in Entity’s Own Equity, which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance eliminates the treasury stock method to calculate diluted EPS for convertible instruments and requires the use of the if-converted method.

Certain investors own OP units in the operating partnership. An OP unit and a share of common stock of the Company have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the operating partnership. OP unit holders have the right to redeem their OP units, subject to certain restrictions. The redemption is required to be satisfied in shares of common stock or cash at the Company’s option, calculated as follows: one share of the Company’s common stock, or cash equal to the fair value of a share of the Company’s common stock at the time of redemption, for each OP unit. When an OP unit holder redeems an OP unit, non-controlling interests in the operating partnership is reduced and the Company’s equity is increased. As of December 31, 2023 and 2022, the non-controlling interest OP unit holders owned 1,330,582 and 1,593,983 OP units, respectively.