Net Income (Loss) per Share

ASC 260, Earnings per share, requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity.

The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock.

The table below presents basic and diluted net (loss) income per share of common stock using the two-class method for the years ended December 31, 2017, 2016 and 2015:



	For the year ended December 31,
	2017			2016			2015
Numerator:
Net income	$	193,031		$	157,876		$	103,256
Preferred dividends	(36,761		)	(30,295		)	(11,884		)
Net income available to common stockholders	156,270			127,581			91,372
Dividends declared on common stock	(188,431		)	(141,236		)	(111,864		)
Dividends on participating securities	(2,913		)	(2,087		)	(1,350		)
Net loss attributable to common stockholders	$	(35,074	)	$	(15,742	)	$	(21,842	)
Denominator:
Basic weighted average shares of common stock outstanding	99,859,153			72,371,374			58,674,046
Diluted weighted average shares of common stock outstanding	101,232,610			73,305,101			59,273,280
Basic and diluted net income per weighted average share of common stock
Distributable Earnings	$	1.89		$	1.96		$	1.91
Undistributed income (loss)	(0.35		)	$	(0.22	)	$	(0.37	)
Basic and diluted net income per share of common stock	$	1.54		$	1.74		$	1.54

For the years ended December 31, 2017, 2016 and 2015, 1,373,457, 933,727 and 599,234 unvested RSUs, respectively, were excluded from the calculation of diluted net income per share because the effect was anti-dilutive.