Net Income Per Share

12 Months Ended

Dec. 31, 2022

Net Income Per ShareThe Company computes net income per share pursuant to the guidance in FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common stock and units, which contain rights to receive non-forfeitable dividends or dividend equivalents, as participating securities requiring the two-class method of computing net income per share. Diluted net income per share of common stock further considers the effect of potentially dilutive shares of common stock outstanding during the period, including the assumed vesting of restricted share units with a market-based or service-based vesting condition, where dilutive. The OP Units held by non-controlling interests represent potentially dilutive securities as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis.

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share (dollars in thousands):


	Year ended December 31,
(dollar amounts in thousands)	2022		2021		2020
Numerator for basic and diluted earnings per share:
Net income	$	134,742	$	96,211	$	42,528
Less: net income attributable to non-controlling interests	(612)		(486)		(255)
Less: net income allocated to unvested restricted common stock and RSUs	(374)		(311)		(404)
Net income available for common stockholders: basic	133,756		95,414		41,869
Net income attributable to non-controlling interests	612		486		255
Net income available for common stockholders: diluted	$	134,368	$	95,900	$	42,124

Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding	134,950,418		116,479,322		95,664,071
Less: weighted average number of shares of unvested restricted common stock	(9,230)		(121,263)		(353,036)
Weighted average shares outstanding used in basic net income per share	134,941,188		116,358,059		95,311,035
Effects of dilutive securities: (1)
OP Units	553,847		553,847		553,847
Unvested restricted common stock and RSUs	356,044		554,432		332,823
Forward sales through ATM Program	4,837		—		—
Weighted average shares outstanding used in diluted net income per share	135,855,916		117,466,338		96,197,705

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(1)For the years ended December 31, 2022 and 2020 excludes the impact of 171,059 and 124,295 unvested restricted stock units, respectively, as the effect would have been antidilutive.