Earnings Per Share

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE

The Company uses the two-class method in its computation of earnings per share. The Company’s Class A common shares and Class B common shares are entitled to receive distributions at different rates, with each Class B common share receiving 0.03% of the distributions paid on each Class A common share. Under the two-class method, the Company’s net income available to common shareholders is allocated between the two classes of common shares on a fully-distributed basis and reflects residual net income after amounts attributed to noncontrolling interests. In the event of a net loss, the Company determined that both classes share in the Company’s losses, and they share in the losses using the same mechanism as the distributions. The Company also has restricted share awards and performance restricted share awards (see Note 14) that have a right to non-forfeitable dividends while unvested and are contemplated as participating when the Company is in a net income position. These awards participate in distributions on a basis equivalent to other Class A common shares but do not participate in losses.

No distributions on common shares were declared for the three and six months ended June 30, 2022 or 2021.

Diluted income (loss) per share calculations for both Class A common shares and Class B common shares contemplate adjustments to the numerator and the denominator under the if-converted method for the convertible Class B common shares, the exchangeable Class A units of the San Francisco Venture and the exchangeable Class A Common Units of the Operating Company. The Company uses the treasury stock method or the two-class method when evaluating dilution for RSUs, restricted shares, and performance restricted shares. The more dilutive of the two methods is included in the calculation for diluted income (loss) per share.

The following table summarizes the basic and diluted loss per share calculations for the three and six months ended June 30, 2022 and 2021 (in thousands, except shares and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net loss attributable to the Company	$	(5,111)	$	(2,289)	$	(22,241)	$	(12,068)
Adjustments to net loss attributable to the Company	23		24		129		133
Net loss attributable to common shareholders	$	(5,088)	$	(2,265)	$	(22,112)	$	(11,935)
Numerator—basic common shares:



Numerator for basic net loss available to Class A common shareholders	$	(5,086)	$	(2,264)	$	(22,104)	$	(11,931)
Numerator for basic net loss available to Class B common shareholders	$	(2)	$	(1)	$	(8)	$	(4)
Numerator—diluted common shares:
Net loss attributable to common shareholders	$	(5,088)	$	(2,265)	$	(22,112)	$	(11,935)
Reallocation of loss upon assumed exchange of dilutive potential securities	(133)		—		(536)		—

Allocation of diluted net loss among common shareholders	$	(5,221)	$	(2,265)	$	(22,648)	$	(11,935)
Numerator for diluted net loss available to Class A common shareholders	$	(5,219)	$	(2,264)	$	(22,640)	$	(11,931)
Numerator for diluted net loss available to Class B common shareholders	$	(2)	$	(1)	$	(8)	$	(4)
Denominator:
Basic weighted average Class A common shares outstanding	68,495,523		67,410,440		68,332,460		67,349,986
Diluted weighted average Class A common shares outstanding	69,635,563		67,410,440		69,472,500		67,349,986
Basic and diluted weighted average Class B common shares outstanding	79,233,544		79,233,544		79,233,544		79,233,544

Basic loss per share:
Class A common shares	$	(0.07)	$	(0.03)	$	(0.32)	$	(0.18)
Class B common shares	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)
Diluted loss per share:
Class A common shares	$	(0.07)	$	(0.03)	$	(0.33)	$	(0.18)
Class B common shares	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)


Anti-dilutive potential Performance RSUs	—		322,366		—		322,366
Anti-dilutive potential Restricted Shares (weighted average)	572,831		702,965		803,665		774,340
Anti-dilutive potential Performance Restricted Shares (weighted average)	—		644,734		49,869		651,277
Anti-dilutive potential Class A common shares from exchanges (weighted average)	76,120,180		79,257,314		76,120,180		79,257,314