Earnings Per Share

3 Months Ended

Mar. 31, 2020

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):



	Three Months Ended March 31,
	2020			2019
Numerator:
Net income	$	15,272		$	10,717
Less: Preferred stock dividends	(3,636		)	(2,423		)
Less: Net income attributable to noncontrolling interests	(717		)	(201		)
Less: Net income attributable to participating securities	(131		)	(114		)
Net income attributable to common stockholders	$	10,788		$	7,979

Denominator:
Weighted average shares of common stock outstanding – basic	114,054,434			98,342,677
Effect of dilutive securities - performance units	259,897			265,109
Weighted average shares of common stock outstanding – diluted	114,314,331			98,607,786

Earnings per share — Basic
Net income attributable to common stockholders	$	0.09		$	0.08
Earnings per share — Diluted
Net income attributable to common stockholders	$	0.09		$	0.08

Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. As such, unvested shares of restricted stock, unvested LTIP Units and unvested Performance Units are considered participating securities. Participating securities are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and each participating security according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Participating securities are also included in the computation of diluted EPS using the more dilutive of the two-class method or

treasury stock method for unvested shares of restricted stock and LTIP Units, and by determining if certain market conditions have been met at the reporting date for unvested Performance Units.

The effect of including unvested shares of restricted stock and unvested LTIP Units using the treasury stock method was excluded from our calculation of weighted average shares of common stock outstanding – diluted, as their inclusion would have been anti-dilutive.

Performance Units, which are subject to vesting based on the Company achieving certain TSR levels over a three-year performance period, are included as contingently issuable shares in the calculation of diluted EPS when TSR has been achieved at or above the threshold levels specified in the award agreements, assuming the reporting period is the end of the performance period, and the effect is dilutive.

We also consider the effect of other potentially dilutive securities, including the Series 1 CPOP Units, Series 2 CPOP Units and OP Units, which may be redeemed for shares of our common stock under certain circumstances, and include them in our computation of diluted EPS when their inclusion is dilutive.