Earnings Per Share

9 Months Ended

Sep. 30, 2023

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) attributable to the Company’s common shareholders by the weighted average number of common shares outstanding for the period including participating securities (restricted shares that have non-forfeitable rights to receive dividends issued pursuant to the Company’s share-based compensation program are considered participating securities). Unvested restricted shares that are participating securities are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the common shareholders. For the three and nine months ended September 30, 2023, the Company had 0.0 million of weighted average unvested restricted shares outstanding that were participating securities. For the three and nine months ended September 30, 2022, the Company had 0.1 million and 0.3 million, respectively, of weighted average unvested restricted shares outstanding that were participating securities. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2023 and 2022:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Numerator
Net income (loss) from continuing operations	$	2,930,000	$	(36,219,000)	$	1,877,000	$	(77,374,000)
Preferred stock dividends	(2,688,000)		(2,688,000)		(8,064,000)		(8,064,000)
Net loss attributable to noncontrolling interests	—		147,000		—		299,000
Net earnings allocated to unvested shares	—		17,000		—		58,000
Income (loss) from continuing operations, net of noncontrolling interest, attributable to vested common shares	242,000		(38,743,000)		(6,187,000)		(85,081,000)
Income from discontinued operations, net of noncontrolling interests, attributable to vested common shares	—		125,381,000		—		122,742,000
Net income (loss) attributable to vested common shares	$	242,000	$	86,638,000	$	(6,187,000)	$	37,661,000
Denominator
Weighted average number of vested common shares outstanding, basic and diluted	13,718,000		13,494,000		13,718,000		13,357,000
Net income (loss) per common share attributable to common shareholders (basic and diluted):
Continuing operations	$	0.02	$	(2.87)	$	(0.45)	$	(6.37)
Discontinued operations	—		9.29		—		9.19
	$	0.02	$	6.42	$	(0.45)	$	2.82

Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. For the three and nine months ended September 30, 2022, no restricted stock units would have been issuable under the Company’s then-President and CEO's market performance-based equity award had the measurement period ended on September 30, 2022, and therefore this market performance-based equity award had no impact in calculating diluted EPS for this period. For the three and nine months ended September 30, 2023, there were no market performance-based equity awards issued or outstanding. Net loss attributable to noncontrolling interests of the Operating Partnership has been excluded from the numerator and the related OP Units have been excluded from the denominator for the purpose of calculating diluted EPS as there would have been no dilutive effect had such amounts been included. The weighted average number of OP Units outstanding was 0 for the three and nine months ended September 30, 2023 and 30,000 and 59,000 for the three and nine months ended September 30, 2022, respectively.