Earnings Per Share

3 Months Ended

Mar. 31, 2023

Note 10. Earnings Per Share

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 months ended March 31, 2023 and 2022, the Company had 0.0 million and 0.4 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 months ended March 31, 2023 and 2022:


	Three months ended March 31,
	2023			2022
Numerator
Net income (loss) from continuing operations	$	14,000		$	(6,815,000	)
Preferred stock dividends		(2,688,000	)		(2,688,000	)
Net loss attributable to noncontrolling interests		—			42,000
Net loss allocated to unvested shares		—			(23,000	)
Loss from continuing operations, net of noncontrolling interest, attributable to vested common shares		(2,674,000	)		(9,484,000	)
Income from discontinued operations, net of noncontrolling interests, attributable to vested common shares		—			5,716,000
Net loss attributable to vested common shares	$	(2,674,000	)	$	(3,768,000	)
Denominator
Weighted average number of vested common shares outstanding, basic and diluted		13,718,000			13,285,000
Net (loss) income per common share attributable to common shareholders (basic and diluted):
Continuing operations	$	(0.19	)	$	(0.71	)
Discontinued operations		—			0.43
	$	(0.19	)	$	(0.28	)

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 months ended March 31, 2022, no restricted stock units would have been issuable under the Company’s then-President and CEO market performance-based equity award had the measurement period ended on March 31, 2022, and therefore this market performance-based equity award had no impact in calculating diluted EPS for this period. For the three months ended March 31, 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 and 81,000 for the three months ended March 31, 2023 and 2022, respectively.