Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2024

Note 20 – Net Income (Loss) per Share

ASC Topic 260, "Earnings Per Share" requires the use of the two-class method of computing both basic and diluted earnings (loss) per share for all periods presented for each class of common stock and participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to common shares and participating securities according to their respective rights to receive dividends. The unvested RSUs granted under our Equity Incentive Plans to certain employees of the Manager qualify as participating securities as RSUs have non-forfeitable rights to participate in dividends. Therefore, unvested RSUs are included in the calculation of basic earnings per share.

Dilutive earnings per share is calculated under the more dilutive computation of the treasury stock method and the if-converted method. Under the treasury stock method, the denominator includes the weighted-average outstanding common shares plus the incremental shares related to participating securities. The incremental shares are determined by subtracting the average unrecognized compensation cost for the period divided by the average stock price from the unvested RSUs.

The table below presents the computation of basic and diluted net income (loss) per share of common stock for the three and six months ended June 30, 2024 and 2023 ($ in thousands except per share data):


	Three Months Ended June 30,						Six Months Ended June 30,
Basic Earnings	2024			2023			2024			2023
Net income (loss)	$	35,785		$	(83,400	)	$	(68,739	)	$	(34,484	)
Less: Preferred dividends		(3,068	)		(3,068	)		(6,136	)		(6,136	)
Less: Earnings attributable to participating securities		—			—			—			—
Less: Dividends on participating securities		(880	)		(997	)		(1,766	)		(2,000	)
Basic Earnings (Loss)	$	31,837		$	(87,465	)	$	(76,641	)	$	(42,620	)

Dilutive Earnings
Basic Earnings (Loss)	$	31,837		$	(87,465	)	$	(76,641	)	$	(42,620	)
Add: Dividends on participating securities		—			—			—			—
Diluted Earnings (Loss)	$	31,837		$	(87,465	)	$	(76,641	)	$	(42,620	)

Number of Shares:
Basic weighted-average shares of common stock outstanding		140,438,676			141,341,238			141,154,140			141,207,597
Diluted weighted-average shares of common stock outstanding		140,611,532			141,341,238			141,154,140			141,207,597

Earnings (Loss) Per Share Attributable to Common Stockholders
Basic	$	0.23		$	(0.62	)	$	(0.54	)	$	(0.30	)
Diluted	$	0.23		$	(0.62	)	$	(0.54	)	$	(0.30	)

For the three months ended June 30, 2024, 172,857 incremental shares were included in the calculation of diluted net income per share because the effect was dilutive. For the six months ended June 30, 2024, 283,433 incremental shares were excluded in the calculation of diluted net income per share because the effect was anti-dilutive.

For the three and six months ended June 30, 2023, 10,485,087 and 10,835,571, respectively, weighted-average potentially issuable shares with respect to the Convertible Notes were excluded in the dilutive earnings per share denominator because the effect was anti-dilutive.

For the three and six months ended June 30, 2023, 2,849,286 and 3,034,394 weighted-average unvested RSUs were excluded in the calculation of diluted net income per share because the effect was anti-dilutive.