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Equity | 9 Months Ended
--- | ---
Sep. 30, 2024
Stockholders' Equity Note [Abstract] |
Equity | Equity Common Stock. In May 2024, we entered into a new equity distribution agreement with JMP Securities LLC ("JMP"). In accordance with the terms of the agreement, we may offer and sell up to 30,000,000 shares of our common stock in "At-The-Market" equity offerings through JMP by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. At September 30, 2024, no shares were sold under the agreement. During 2023, the Board of Directors authorized a share repurchase program providing for the repurchase of up to $150.0 million of our outstanding common stock. The repurchase of our common stock may be made from time to time in the open market, through privately negotiated transactions, or otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Exchange Act, based on our stock price, general market conditions, applicable legal requirements and other factors. The program may be discontinued or modified at any time. During April 2024, we repurchased 935,739 shares of our common stock under the share repurchase program at a total cost of $11.4 million and an average cost of $12.19 per share. At September 30, 2024, there was $138.6 million available for repurchase under this program. Noncontrolling Interest. Noncontrolling interest relates to the operating partnership units (“OP Units”) issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of Arbor Commercial Mortgage, LLC (“ACM”) in 2016. Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one-for-one basis. At September 30, 2024, there were 16,293,589 OP Units outstanding, which represented 8.0% of the voting power of our outstanding stock. Distributions. Dividends declared (on a per share basis) during the nine months ended September 30, 2024 are as follows:
Common Stock |  | Preferred Stock
|  |  |  |  |  | Dividend
Declaration Date |  | Dividend |  | Declaration Date |  | Series D |  | Series E |  | Series F
February 14, 2024 |  | $ | 0.43 |  |  | March 29, 2024 |  | $ | 0.3984375 |  |  | $ | 0.390625 |  |  | $ | 0.390625 |
May 1, 2024 |  | $ | 0.43 |  |  | June 28, 2024 |  | $ | 0.3984375 |  |  | $ | 0.390625 |  |  | $ | 0.390625 |
July 31, 2024 |  | $ | 0.43 |  |  | September 27, 2024 |  | $ | 0.3984375 |  |  | $ | 0.390625 |  |  | $ | 0.390625 |
Common Stock – On October 30, 2024, the Board of Directors declared a cash dividend of $0.43 per share of common stock. The dividend is payable on November 27, 2024 to common stockholders of record as of the close of business on November 15, 2024. Deferred Compensation. During 2024, we issued 826,029 shares of restricted common stock to certain employees and Board of Directors members under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $10.9 million, of which: (1) 268,188 shares with a grant date fair value of $3.5 million vested on the grant date in 2024; (2) 244,113 shares with a grant date fair value of $3.2 million will vest in 2025; (3) 247,664 shares with a grant date fair value of $3.2 million will vest in 2026; (4) 31,314 shares with a grant date fair value of $0.5 million will vest in 2027; and (5) 34,750 shares with a grant date fair value of $0.5 million will vest in 2028. During 2024, we issued our chief executive officer 309,775 shares of restricted common stock with a grant date fair value of $3.9 million that vest in full in the first quarter of 2027. We also issued 36,688 fully-vested restricted stock units (“RSUs”) with a grant date fair value of $0.5 million to certain members of our Board of Directors, who have decided to defer the receipt of the common stock, into which the RSUs are converted, to a future date pursuant to a pre-established deferral election. During 2024, 275,569 shares of performance-based RSUs and 184,729 shares of restricted common stock previously granted to our chief executive officer fully vested. In addition, during 2024, 165,746 shares of restricted common stock previously granted to our chief executive officer fully vested and was net settled for 81,132 shares of common stock. During 2024, we withheld 274,964 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested. Earnings Per Share (“EPS”). Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of RSUs, OP Units and convertible senior unsecured notes. A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data):
|  | Three Months Ended September 30,
|  | 2024 |  | 2023
|  | Basic |  | Diluted |  | Basic |  | Diluted
Net income attributable to common stockholders (1) |  | $ | 58,175 |  |  | $ | 58,175 |  |  | $ | 77,924 |  |  | $ | 77,924 |
Net income attributable to noncontrolling interest (2) |  | — |  |  | 5,028 |  |  | — |  |  | 6,789 |
Interest expense on convertible notes (3) |  | — |  |  | — |  |  | — |  |  | 6,081 |
Net income attributable to common stockholders and noncontrolling interest |  | $ | 58,175 |  |  | $ | 63,203 |  |  | $ | 77,924 |  |  | $ | 90,794 |
Weighted average shares outstanding |  | 188,513,832 |  | 188,513,832 |  | 187,023,395 |  | 187,023,395
Dilutive effect of OP Units (2) |  | — |  | 16,293,589 |  | — |  | 16,293,589
Dilutive effect of convertible notes (3) |  | — |  | — |  | — |  | 17,312,382
Dilutive effect of RSUs (4) |  | — |  | 539,888 |  | — |  | 699,452
Weighted average shares outstanding |  | 188,513,832 |  |  | 205,347,309 |  | 187,023,395 |  | 221,328,818
Net income per common share (1) |  | $ | 0.31 |  |  | $ | 0.31 |  |  | $ | 0.42 |  |  | $ | 0.41 |
|  | Nine Months Ended September 30,
|  | 2024 |  | 2023
Net income attributable to common stockholders (1) |  | $ | 163,445 |  |  | $ | 163,445 |  |  | $ | 238,407 |  |  | $ | 238,407 |
Net income attributable to noncontrolling interest (2) |  | — |  |  | 14,119 |  |  | — |  |  | 21,200 |
Interest expense on convertible notes (3) |  | — |  |  | — |  |  | — |  |  | 18,244 |
Net income attributable to common stockholders and noncontrolling interest |  | $ | 163,445 |  |  | $ | 177,564 |  |  | $ | 238,407 |  |  | $ | 277,851 |
Weighted average shares outstanding |  | 188,626,263 |  | 188,626,263 |  | 183,340,149 |  | 183,340,149
Dilutive effect of OP Units (2) |  | — |  | 16,293,589 |  | — |  | 16,293,589
Dilutive effect of convertible notes (3) |  | — |  | — |  | — |  | 17,271,419
Dilutive effect of RSUs (4) |  | — |  | 528,627 |  | — |  | 552,242
Weighted average shares outstanding |  | 188,626,263 |  | 205,448,479 |  | 183,340,149 |  | 217,457,399
Net income per common share (1) |  | $ | 0.87 |  |  | $ | 0.86 |  |  | $ | 1.30 |  |  | $ | 1.28 |
________________________ (1)Net of preferred stock dividends. (2)We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3)The three and nine months ended September 30, 2024 excludes interest expense of $6.1 million and $18.3 million, respectively, and potentially dilutive shares of 17,512,742 and 17,463,320, respectively, attributable to convertible debt since their effect would have been anti-dilutive. (4)Our chief executive officer was granted RSUs, which vest at the end of a 4-year performance period based upon our achievement of total stockholder return objectives.

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