Earnings Per Share

12 Months Ended

Dec. 31, 2020

Note 15. 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 2020, 2019 and 2018, the Company had 0.4 million, 0.4 million and 0.5 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 2020, 2019 and 2018, respectively:

	Years ended December 31,
	2020			2019			2018
Numerator
Net (loss) income	$	(520,000	)	$	1,566,000		$	4,358,000
Preferred stock dividends		(10,752,000	)		(10,752,000	)		(10,863,000	)
Preferred stock redemption costs		-			-			(3,507,000	)
Net (income) attributable to noncontrolling interests		(552,000	)		(490,000	)		(469,000	)
Net earnings allocated to unvested shares		(238,000	)		(558,000	)		(628,000	)
Net (loss) attributable to vested common shares	$	(12,062,000	)	$	(10,234,000	)	$	(11,109,000	)
Denominator
Weighted average number of vested common shares outstanding, basic and diluted		13,104,000			13,082,000			13,397,000

Net (loss) per common share attributable to common shareholders, basic and diluted	$	(0.92	)	$	(0.78	)	$	(0.83	)

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 2020, 2019 and 2018, no restricted stock units would have been issuable under the Company’s President and CEO market performance-based equity award (see Note 14 – “Share-Based Compensation”) had the measurement periods ended on December 31, 2020, 2019 and 2018, respectively. Therefore, this market performance-based equity award had no impact in calculating diluted EPS for 2020, 2019 and 2018. 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 81,000, 83,000 and 65,000 for 2020, 2019 and 2018, respectively.