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Earnings per Share of Common Stock

6 Months Ended

Jun. 30, 2022

Earnings per Share of Common Stock

Earnings per Share of Common Stock

Note 22. Earnings per Share of Common Stock

The table below provides information on the basic and diluted earnings per share computations, including the number of shares of common stock used for purposes of these computations.


		Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except for share and per share amounts)		2022			2021			2022			2021
Basic Earnings
Net income		$	58,965		$	30,904		$	123,228		$	59,851
Less: Income attributable to non-controlling interest			2,874			444			3,649			1,103
Less: Income attributable to participating shares			2,412			3,616			4,824			4,273
Basic earnings		$	53,679		$	26,844		$	114,755		$	54,475

Diluted Earnings
Net income		$	58,965		$	30,904		$	123,228		$	59,851
Less: Income attributable to non-controlling interest			2,874			444			3,649			1,103
Less: Income attributable to participating shares			2,412			3,616			4,824			4,273
Add: Expenses attributable to dilutive instruments			2,319			—			4,638			—
Diluted earnings		$	55,998		$	26,844		$	119,393		$	54,475

Number of Shares
Basic — Average shares outstanding			114,359,026			71,221,806			101,106,777			64,059,509
Effect of dilutive securities — Unvested participating shares			10,706,466			163,797			10,696,654			150,425
Diluted — Average shares outstanding			125,065,492			71,385,603			111,803,431			64,209,934

Earnings Per Share Attributable to RC Common Stockholders:
Basic		$	0.47		$	0.38		$	1.13		$	0.85
Diluted		$	0.45		$	0.38		$	1.07		$	0.85

In the table above, participating unvested RSUs were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above.

The Company adopted ASU 2020-06 , Debt – Debt with Conversion and other Options and Derivatives and Hedging-Contracts in Entity’s Own Equity, which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method.

Certain investors own OP units in our operating partnership. An OP unit and a share of common stock of the Company have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the operating partnership. OP unit holders have the right to redeem their OP units, subject to certain restrictions. The redemption is required to be satisfied in shares of common stock or cash at the Company's option, calculated as follows: one share of the Company's common stock, or cash equal to the fair value of a share of the Company's common stock at the time of redemption, for each OP unit. When an OP unit holder redeems an OP unit, non-controlling interests in the

operating partnership is reduced and the Company's equity is increased. As of June 30, 2022 and December 31, 2021, the non-controlling interest OP unit holders owned 1,749,746 and 293,003 OP units, respectively.