Net Income (Loss) per Share

12 Months Ended

Dec. 31, 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 years ended December 31, 2024, 2023 and 2022 ($ in thousands except per share data):


	Year Ended December 31,
Basic Earnings	2024			2023			2022
Net income (loss)	$	(119,636	)	$	58,127		$	265,232
Less: Preferred dividends		(12,272	)		(12,272	)		(12,272	)
Less: Earnings attributable to participating securities		—			—			—
Less: Dividends on participating securities		(3,252	)		(4,353	)		(4,132	)
Basic Earnings (Loss)	$	(135,160	)	$	41,502		$	248,828

Dilutive Earnings
Basic Earnings (Loss)	$	(135,160	)	$	41,502		$	248,828
Add: Dividends on participating securities		—			—			4,132
Add: Interest expense on Convertible Notes		—			—			25,385
Diluted Earnings (Loss)	$	(135,160	)	$	41,502		$	278,345

Number of Shares:
Basic weighted-average shares of common stock outstanding		139,674,140			141,281,286			140,534,635
Diluted weighted-average shares of common stock outstanding		139,674,140			141,281,286			165,504,660

Earnings (Loss) Per Share Attributable to Common Stockholders
Basic	$	(0.97	)	$	0.29		$	1.77
Diluted	$	(0.97	)	$	0.29		$	1.68

For the year ended December 31, 2024, there were no incremental shares related to RSUs included in the calculation of diluted net income per share. For year ended December 31, 2023, 2,932,284 weighted-average unvested RSUs were excluded in the calculation of diluted net income per share because the effect was anti-dilutive. For the year ended December 31, 2022, 2,655,833 weighted average unvested RSUs, were included in the calculation of diluted net income per share because the effect was dilutive.

The Convertible Notes were repaid during the fourth quarter of 2023 and were therefore excluded from the calculation of dilutive earnings per share for the years ended December 31, 2024 and 2023. For year ended December 31, 2022, 22,314,191 weighted-average potentially issuable shares with respect to the Convertible Notes were included in the dilutive earnings per share denominator because the effect was dilutive.