Earnings Per Share

EPS is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit (HPU) Program (see Note 11). These HPU units are treated as a separate class of common stock.

The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share calculations ($ in thousands, except for per share data):



	For the Years Ended December 31,
	2013			2012			2011
Income (loss) from continuing operations	$	(220,768	)	$	(314,678	)	$	(51,010	)
Net (income) loss attributable to noncontrolling interests	(718		)	1,500			3,629
Income from sales of residential property	86,658			63,472			5,721
Preferred dividends	(49,020		)	(42,320		)	(42,320		)
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders	$	(183,848	)	$	(292,026	)	$	(83,980	)



	For the Years Ended December 31,
	2013			2012			2011
Earnings allocable to common shares:
Numerator for basic and diluted earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(177,907	)	$	(282,452	)	$	(81,375	)
Income (loss) from discontinued operations	623			(16,908		)	(5,343		)
Gain from discontinued operations	21,515			26,363			24,331
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(155,769	)	$	(272,997	)	$	(62,387	)
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic and diluted earnings per common share	84,990			83,742			88,688
Basic and diluted earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(2.09	)	$	(3.37	)	$	(0.91	)
Income (loss) from discontinued operations	0.01			(0.20		)	(0.06		)
Gain from discontinued operations	0.25			0.31			0.27
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(1.83	)	$	(3.26	)	$	(0.70	)



	For the Years Ended December 31,
	2013			2012			2011
Earnings allocable to High Performance Units:
Numerator for basic and diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(5,941	)	$	(9,574	)	$	(2,605	)
Income (loss) from discontinued operations	21			(573		)	(171		)
Gain from discontinued operations	718			894			779
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(5,202	)	$	(9,253	)	$	(1,997	)
Denominator for basic and diluted earnings per HPU share:
Weighted average High Performance Units outstanding for basic and diluted earnings per share	15			15			15
Basic and diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(396.07	)	$	(638.27	)	$	(173.66	)
Income (loss) from discontinued operations	1.40			(38.20		)	(11.40		)
Gain from discontinued operations	47.87			59.60			51.93
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(346.80	)	$	(616.87	)	$	(133.13	)

For the years ended December 31, 2013, 2012 and 2011 the following shares were anti-dilutive ($ in thousands):



	For the Years Ended December 31,
	2013	2012	2011
Joint venture shares	298	298	298
Stock options	—	—	44
3.00% convertible senior unsecured notes	16,992	—	—
Series J convertible perpetual preferred stock	15,635	—	—
1.50% convertible senior unsecured notes	11,567	—	—