EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. We have issued restricted stock units (“RSUs”) and incentive stock options (“ISOs”) under our 2015 Incentive Plan and Series D Convertible Preferred Units (“Series D preferred units”), which could have a dilutive effect on our earnings per share upon exercise of the RSUs, ISOs, or upon conversion of the Series D preferred units (refer to Note 4 for further discussion of the preferred units). Other than the issuance of RSUs, ISOs, and Series D preferred units, we have no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of earnings. Under the terms of the Operating Partnership’s Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”). Upon the exercise of Exchange Rights, and in our sole discretion, we may issue common shares in exchange for Units on a one-for-one-basis.

For the years ended December 31, 2020 and 2019, and the transition period ended December 31, 2018, performance-based restricted stock awards of 26,994, 37,822, and 25,300 were excluded from the calculation of diluted earnings per share because the assumed proceeds per share plus the average unearned compensation were greater than the average market price of the common shares for the periods presented and, therefore, were anti-dilutive. Refer to Note 16 - Share-Based Compensation for discussion of the terms for these awards.

For the year ended December 31, 2020, Series D preferred units of 228,000 and time-based RSUs of 13,000 were excluded from the calculation of diluted earnings per shares because they were anti-dilutive because including these items would have improved earnings per share.

For the year ended December 31, 2020, weighted average stock options of 86,000 were excluded from the calculation of diluted earnings per share because the assumed proceeds per share plus the average unearned compensation were greater than the average market price of common shares for the period and were, therefore, anti-dilutive.

The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the consolidated financial statements for the years ended December 31, 2020 and 2019, the transition period ended December 31, 2018, and the fiscal year ended April 30, 2018:


	(in thousands, except per share data)
	Year Ended December 31,				Period Ended		Fiscal Year Ended
	2020		2019		December 31, 2018		April 30, 2018
NUMERATOR
Income (loss) from continuing operations – controlling interests	$	4,441	$	78,669	$	(4,908)	$	(30,266)
Income (loss) from discontinued operations – controlling interests	—		—		510		147,054
Net income (loss) attributable to controlling interests	4,441		78,669		(4,398)		116,788
Dividends to preferred shareholders	(6,528)		(6,821)		(4,547)		(8,569)
Redemption of preferred shares	297		—		—		(3,657)
Numerator for basic earnings per share – net income (loss) available to common shareholders	(1,790)		71,848		(8,945)		104,562
Noncontrolling interests – Operating Partnership	(212)		6,752		(1,032)		12,702
Dividends to preferred unitholders	640		537		—		—
Numerator for diluted earnings (loss) per share	$	(1,362)	$	79,137	$	(9,977)	$	117,264
DENOMINATOR
Denominator for basic earnings per share weighted average shares	12,564		11,744		11,937		11,998
Effect of redeemable operating partnership units	1,030		1,237		1,387		1,462
Effect of Series D preferred units	—		193		—		—
Effect of diluted restricted stock awards and restricted stock units	—		8		—		—
Denominator for diluted earnings per share	13,594		13,182		13,324		13,460

Earnings (loss) per common share from continuing operations – basic	$	(0.15)	$	6.06	$	(0.79)	$	(3.54)
Earnings (loss) per common share from discontinued operations – basic	—		—		0.04		12.25
NET EARNINGS (LOSS) PER COMMON SHARE – BASIC	$	(0.15)	$	6.06	$	(0.75)	$	8.71

Earnings (loss) per common share from continuing operations – diluted	$	(0.15)	$	6.00	$	(0.79)	$	(3.54)
Earnings (loss) per common share from discontinued operations – diluted	—		—		0.04		12.25
NET EARNINGS (LOSS) PER COMMON SHARE – DILUTED	$	(0.15)	$	6.00	$	(0.75)	$	8.71