Earnings Per Share

3 Months Ended

Mar. 31, 2017

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 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 the three months ended March 31, 2017 and 2016, the Company had 3.7 million and 3.6 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 three months ended March 31, 2017 and 2016, respectively:

	Three months ended March 31,
	2017			2016
Numerator
Income from continuing operations	$	11,945,000		$	1,576,000
Preferred stock dividends		(3,602,000	)		(3,602,000	)
Net (income) loss attributable to noncontrolling interests		(169,000	)		87,000
Net earnings allocated to unvested shares		(356,000	)		(167,000	)
Net income (loss) attributable to vested common shares outstanding	$	7,818,000		$	(2,106,000	)
Denominator
Weighted average number of vested common shares outstanding		81,734,000			81,656,000

Net income (loss) per commons share attributable to common shareholders, basic and diluted	$	0.10		$	(0.03	)

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 7 - “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 were 351,000 and 352,000 for the three months ended March 31, 2017 and 2016, respectively.