Note 14 - Earnings per Share

6 Months Ended

Jun. 30, 2025

Note 14 – Earnings per Share

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined based on the weighted average number of shares outstanding during the period combined with the incremental average shares that would have been outstanding assuming the conversion of all potentially dilutive common shares into common shares as of the earliest date possible. Potentially dilutive securities include stock options, convertible preferred stock, restricted stock, warrants, RSUs and OP units, which, subject to certain terms and conditions, may be tendered for redemption by the holder thereof for cash based on the market price of the Company’s common stock or, at the Company’s option and sole discretion, for shares of the Company’s common stock on a one-for-one basis. The weighted average number of dilutive convertible preferred stock, restricted stock, RSUs and OP units outstanding for the three and six months ended June 30, 2025 was approximately 7.5 million and 7.7 million, respectively. Stock options, convertible preferred stock, restricted stock, warrants, RSUs and OP units have been omitted from the Company’s denominator for the purpose of computing diluted earnings per share for the three and six months ended June 30, 2024 since the effect of including these amounts in the denominator would have no dilutive impact due to the net loss position. The weighted average number of anti-dilutive convertible preferred stock, restricted stock, RSUs and OP units outstanding for the three and six months ended June 30, 2024 was approximately 7.9 million and 7.5 million, respectively.

The following table sets forth the computation of earnings per common share for the three and six months ended June 30, 2025 and 2024:


(in thousands, except per share data)	Three Months Ended June 30,						Six Months Ended June 30,
Numerator:	2025			2024			2025			2024
Net income (loss)	$	44,710		$	(4,501	)	$	39,081		$	(6,439	)
Less: Preferred equity return on Fortress preferred equity		—			(3,084	)		(3,497	)		(6,106	)
Less: Preferred equity accretion to redemption value		—			(973	)		(997	)		(2,352	)
Less: Preferred OP units return		(177	)		(144	)		(347	)		(283	)
Plus: Net loss attributable to noncontrolling interest		(6,292	)		1,127			(4,940	)		1,966
Net income (loss) attributable to common stockholders	$	38,241		$	(7,575	)	$	29,300		$	(13,214	)

Denominator
Basic weighted-average common shares		36,913			35,905			36,798			35,890
Dilutive potential common shares		7,536			—			7,668			—
Diluted weighted-average common shares		44,449			35,905			44,466			35,890

Net income (loss) per common share- basic	$	1.04		$	(0.21	)	$	0.80		$	(0.37	)
Net income (loss) per common share- diluted	$	0.86		$	(0.21	)	$	0.66		$	(0.37	)

In determining the weighted average shares outstanding for the three and six months ended June 30, 2025 and 2024 for both basic and diluted earnings per share, the Company included the warrants issued to the Fortress Member and Lamont Street Partners, LLC on November 22, 2022, as the shares of common stock that would be issued upon the exercise of the warrants are issuable for nominal consideration of one cent per share of common stock. These warrants were exercisable immediately upon issuance, but no warrants had been exercised as of June 30, 2025.