Earnings Per Share

12 Months Ended

Dec. 31, 2016

Note 16. 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 issued pursuant to the Company’s share-based compensation program are considered participating securities, as such shares have non-forfeitable rights to receive dividends). Unvested restricted shares 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 2016, 2015 and 2014, the Company had 3.6 million, 3.5 million and 3.7 million, respectively, of weighted average unvested restricted shares outstanding. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the 2016, 2015 and 2014, respectively:

	Years ended December 31,
	2016			2015			2014
Numerator
Income from continuing operations	$	8,764,000		$	21,616,000		$	17,611,000
Preferred stock dividends		(14,408,000	)		(14,408,000	)		(14,408,000	)
Net loss attributable to noncontrolling interests		179,000			366,000			358,000
Net earnings allocated to unvested shares		(715,000	)		(701,000	)		(734,000	)
(Loss) income from continuing operations attributable to vested common shares		(6,180,000	)		6,873,000			2,827,000
Income from discontinued operations, net of noncontrolling interests, attributable to vested common shares		-			164,000			11,012,000
Net (loss) income attributable to vested common shares outstanding	$	(6,180,000	)	$	7,037,000		$	13,839,000
Denominator
Weighted average number of vested common shares outstanding		81,672,000			81,356,000			75,311,000
Earnings per vested common share, basic and diluted
Continuing operations	$	(0.08	)	$	0.09		$	0.04
Discontinued operations		0.00			0.00			0.14
	$	(0.08	)	$	0.09		$	0.18

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. The 5,750,000 common shares subject to the forward sale agreements (see Note 12 - “Shareholders’ Equity”) have been excluded from the denominator as they were anti-dilutive using the treasury stock method. 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 effect had such amounts been included. The weighted average number of OP Units outstanding was 352,000, 378,000 and 433,000 for 2016, 2015 and 2014, respectively.