EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. We have issued restricted stock units (“RSUs”) and incentive stock options (“ISOs”) under our 2015 Incentive Plan, Series D Convertible Preferred Units (“Series D preferred units”), and Series E Convertible Preferred Units (“Series E preferred units”), which could have a dilutive effect on our earnings per share upon exercise of the RSUs, ISOs, or upon conversion of the Series D or Series E preferred units (refer to Note 4 for further discussion of the preferred units). Other than the issuance of RSUs, ISOs, Series D preferred units, and Series E preferred units, we have no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of earnings. Under the terms of the Operating Partnership’s Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”). Upon the exercise of Exchange Rights, and in our sole discretion, we may issue common shares in exchange for Units on a one-for-one-basis.

For the years ended December 31, 2021, 2020, and 2019, performance-based restricted stock awards of 31,821, 26,994, and 37,822 were excluded from the calculation of diluted earnings per share because the assumed proceeds per share plus the average unearned compensation were greater than the average market price of the common shares for the periods presented and, therefore, were anti-dilutive. Refer to Note 16 - Share-Based Compensation for discussion of the terms for these awards.

For the year ended December 31, 2020, Series D preferred units of 228,000, stock options of 86,000, and time-based RSUs of 13,000 were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Including these items would have improved earnings per share.

The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the consolidated financial statements for the years ended December 31, 2021, 2020, and 2019:


	(in thousands, except per share data)
	Year Ended December 31,
	2021		2020		2019
NUMERATOR


Net income (loss) attributable to controlling interests	(29)		4,441		78,669
Dividends to preferred shareholders	(6,428)		(6,528)		(6,821)
Redemption of preferred shares	—		297		—
Numerator for basic earnings per share – net income (loss) available to common shareholders	(6,457)		(1,790)		71,848
Noncontrolling interests – Operating Partnership and Series E preferred units	(2,806)		(212)		6,752
Dividends to preferred unitholders	640		640		537
Numerator for diluted earnings (loss) per share	$	(8,623)	$	(1,362)	$	79,137
DENOMINATOR
Denominator for basic earnings per share weighted average shares	13,803		12,564		11,744
Effect of redeemable operating partnership units	899		1,030		1,237
Effect of Series D preferred units	228		—		193
Effect of Series E preferred units	729		—		—
Effect of diluted restricted stock awards and restricted stock units	45		—		8
Denominator for diluted earnings per share	15,704		13,594		13,182



NET EARNINGS (LOSS) PER COMMON SHARE – BASIC	$	(0.47)	$	(0.15)	$	6.06



NET EARNINGS (LOSS) PER COMMON SHARE – DILUTED	$	(0.47)	$	(0.15)	$	6.00