Earnings Per Share and Equity Transactions

12 Months Ended

Dec. 31, 2020

Earnings Per Share and Equity Transactions

Basic earnings per share ("EPS") is computed using the two-class method by dividing net income by the weighted average number of common shares outstanding for the period (the "common shares") and participating securities. The restricted share awards issued pursuant to the InvenTrust Properties Corp. 2015 Incentive Award Plan (as amended, the "Incentive Award Plan") are deemed to be participating securities. Diluted EPS is generally computed using the treasury-stock method by dividing net income by the common shares plus potential common shares resulting from restricted share awards.

The following table reconciles the amounts used in calculating basic and diluted earnings per share:


	Year ended December 31,
	2020		2019		2018
Numerator:
Net (loss) income from continuing operations	$	(10,174)	$	63,899	$	83,849
Earnings allocated to unvested restricted shares	—		(29)		(95)
Net (loss) income from continuing operations attributable to common shareholders	$	(10,174)	$	63,870	$	83,754
Net (loss) income from discontinued operations attributable to common shareholders	$	—	$	(25,500)	$	—

Denominator:
Weighted average number of common shares outstanding - basic	719,882,476		728,620,309		761,139,011
Effect of unvested restricted shares (a)	—		763,840		926,463
Weighted average number of common shares outstanding - diluted	719,882,476		729,384,149		762,065,474

Basic and diluted earnings per common share:
Net (loss) income from continuing operations per share	$	(0.01)	$	0.09	$	0.11
Net loss from discontinued operations per share	—		(0.04)		—
Net (loss) income per share	$	(0.01)	$	0.05	$	0.11

(a)For the year ended December 31, 2020, the Company has excluded the anti-dilutive effect of unvested restricted shares.

On November 1, 2019, the Company adopted a Second Amended and Restated Share Repurchase Program ("SRP"), authorizing redemption of the Company's shares of common stock, subject to certain conditions and limitations, to provide limited liquidity to stockholders. The Company's obligation to repurchase any shares under the SRP was conditioned upon having sufficient funds available to complete the repurchase. The repurchase price per share for all stockholders is equal to a 25% discount to the most recent estimated NAV per share of the Company's common stock established by the Company's board of directors, which was $3.14 per share as of May 1, 2019. During the year ended December 31, 2019, 8,517,605 shares were repurchased in connection with the SRP at a price per share of $2.355. During the year ended December 31, 2020, 2,136,119 shares were repurchased in connection with the SRP.

On November 1, 2019, the Company began offering shares of the Company's common stock to existing stockholders pursuant to the Company's amended and restated distribution reinvestment plan ("DRP"). Under the DRP, stockholders may elect to reinvest an amount equal to the distributions declared on their shares of common stock into additional shares of the Company's common stock in lieu of receiving cash distributions. In accordance with the DRP, participants may acquire shares of common stock at a 25% discount to the most recent estimated NAV per share of the Company's common stock established by the Company's board of directors, which was $3.14 per share as of May 1, 2019. During the year ended December 31, 2019, the Company did not issue shares pursuant to the DRP. During the year ended December 31, 2020 the Company sold a total of 79,040 shares in connection with the DRP at a price per share of $2.355.

Effective July 11, 2020, the Company suspended the SRP and the DRP.

On August 15, 2018, the Company announced and commenced a modified "Dutch Auction" tender offer (the "Offer") to purchase for cash up to $75,000 in value of shares of the Company's common stock, par value $0.001 per share (the "Shares"), subject to its ability to increase the number of Shares accepted for payment by up to 2% of the Company's outstanding Shares. The Company exercised that option and increased the Offer by 10,706,774 shares, or $22,500, to avoid any proration for the stockholders tendering shares. The Offer expired on September 13, 2018.

As a result of the Offer, the Company accepted for purchase 46,559,289 shares of its common stock (which represented approximately 6.0% of the shares of common stock outstanding at the time) at a purchase price of $2.10 per share, for a cost of approximately $97,775, excluding fees and expenses. Aggregate costs of $98,491 were recorded as reductions to common stock and additional paid-in capital on the consolidated statements of equity for the year ended December 31, 2018.