Earnings Per Share

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



	For the Three Months Ended March 31,
	2018			2017
Income (loss) from continuing operations	$	17,980		$	(28,248	)
Income from sales of real estate	17,048			8,110
Net (income) loss attributable to noncontrolling interests	(95		)	1,100
Preferred dividends	(8,124		)	(12,830		)
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders for basic earnings per common share⁽¹⁾	$	26,809		$	(31,868	)
Add: Effect of Series J convertible perpetual preferred stock	2,250			—
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders for diluted earnings per common share⁽¹⁾	$	29,059		$	(31,868	)



	For the Three Months Ended March 31,
	2018		2017
Earnings allocable to common shares:
Numerator for basic earnings per share:
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders	$	26,809	$	(31,868	)
Income from discontinued operations	—		4,766
Net income (loss) attributable to iStar Inc. and allocable to common shareholders	$	26,809	$	(27,102	)

Numerator for diluted earnings per share:
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders	$	29,059	$	(31,868	)
Income from discontinued operations	—		4,766
Net income (loss) attributable to iStar Inc. and allocable to common shareholders	$	29,059	$	(27,102	)

Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic earnings per common share	67,913		72,065
Add: Effect of assumed shares issued under treasury stock method for restricted stock units	122		—
Add: Effect of series J convertible perpetual preferred stock	15,635		—
Weighted average common shares outstanding for diluted earnings per common share	83,670		72,065

Basic earnings per common share:
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders	$	0.39	$	(0.44	)
Income from discontinued operations	—		0.06
Net income (loss) attributable to iStar Inc. and allocable to common shareholders	$	0.39	$	(0.38	)

Diluted earnings per common share:
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders	$	0.35	$	(0.44	)
Income from discontinued operations	—		0.06
Net income (loss) attributable to iStar Inc. and allocable to common shareholders	$	0.35	$	(0.38	)

The following shares were not included in the diluted EPS calculation because they were anti-dilutive (in thousands)⁽¹⁾:



	For the Three Months Ended March 31,
	2018	2017
Series J convertible perpetual preferred stock	—	15,635
Joint venture shares	—	298

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(1)

For the three months ended March 31, 2017, the effect of the Company's Series J convertible preferred stock, unvested Units, performance-based Units, CSEs and restricted stock awards were anti-dilutive due to the Company having a net loss for the period. The Company will settle conversions of the 3.125% Convertible Notes by paying the conversion value in cash up to the original principal amount of the notes being converted and shares of common stock to the extent of any conversion premium. The amount of cash and shares of common stock, if any, due upon conversion will be based on a daily conversion value calculated for each trading day in a 40 consecutive day observation period. Based upon the conversion price of the 3.125% Convertible Notes, no shares of common stock would have been issuable upon conversion of the 3.125% Convertible Notes for the three months ended March 31, 2018 and therefore the 3.125% Convertible Notes had no effect on diluted EPS for such periods.