Earnings Per Share and Equity Transactions

6 Months Ended

Jun. 30, 2021

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 time-based restricted share awards issued pursuant to the Incentive Award Plan are deemed to be participating securities. Diluted EPS is generally computed using the treasury-stock method by dividing net income or loss by the common shares plus potential common shares resulting from time-based restricted share awards.

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


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Numerator:
Net income (loss)	$	1,499	$	(9,611)	$	1,399	$	(13,097)
Earnings allocated to unvested restricted shares (a)	—		—		—		—
Net income (loss) attributed to common shareholders	$	1,499	$	(9,611)	$	1,399	$	(13,097)

Denominator:
Weighted average number of common shares outstanding - basic	71,943,522		72,137,317		71,970,925		72,136,129
Effect of unvested restricted shares (b)	92,804		—		53,528		—
Weighted average number of common shares outstanding - diluted	72,036,326		72,137,317		72,024,453		72,136,129

Basic and diluted earnings per common share:
Net income (loss) per common share	$	0.02	$	(0.13)	$	0.02	$	(0.18)

(a)For the three and six months ended June 30, 2021 and 2020, there were no undistributed earnings to be allocated.

(b)For the three and six months ended June 30, 2020, the Company has excluded the anti-dilutive effect of unvested restricted shares.

On August 5, 2021 the Company effected a 1-for-10 reverse stock split of its common stock. See "Note 1. Organization" for more information concerning the reverse stock split. As a result of the reverse stock split, as of June 30, 2021, the number of shares of common stock outstanding was reduced from 712,090,283 shares to 71,261,383 shares on that date. Fractional shares resulted in the issuance of an additional 52,355 shares, which have been included in the total issued and outstanding shares for all periods presented.

On November 1, 2019, the Company adopted a Second Amended and Restated Share Repurchase Program (the "Original SRP"). During the six months ended June 30, 2020, 213,612 shares were repurchased in connection with the Original SRP. Effective July 11, 2020, the Company suspended the Original SRP.

On April 6, 2021, the Company adopted the Third Amended and Restated Share Repurchase Program, (as amended, the "SRP"). On April 12, 2021, the Company announced the reinstatement of the SRP, effective May 14, 2021, for qualifying shareholders. The repurchase price per share of $21.70 for eligible 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, which was $28.90 per share as of December 1, 2020. During the six months ended June 30, 2021, 755,643 shares were repurchased in connection with the SRP. On August 5, 2021, the Board suspended the SRP effective September 5, 2021.

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"). During the three and six months ended June 30, 2020, 5,779 and 7,904 shares, respectively, were issued pursuant to the DRP. Effective July 11, 2020, the Company suspended the DRP.