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Earnings per Share of Common Stock

9 Months Ended

Sep. 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 EPS computations, including the number of shares of common stock used for purposes of these computations.


		Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except for share and per share amounts)		2022			2021			2022			2021
Basic Earnings
Net income		$	66,253		$	46,535		$	189,481		$	106,386
Less: Income attributable to non-controlling interest			3,023			756			6,672			1,859
Less: Income attributable to participating shares			2,407			2,444			7,231			6,717
Basic earnings		$	60,823		$	43,335		$	175,578		$	97,810

Diluted Earnings
Net income		$	66,253		$	46,535		$	189,481		$	106,386
Less: Income attributable to non-controlling interest			3,023			756			6,672			1,859
Less: Income attributable to participating shares			2,407			2,444			7,231			6,717
Add: Expenses attributable to dilutive instruments			2,319			—			6,957			—
Diluted earnings		$	63,142		$	43,335		$	182,535		$	97,810

Number of Shares
Basic — Average shares outstanding			114,371,160			71,618,168			105,576,826			66,606,749
Effect of dilutive securities — Unvested participating shares			11,295,449			169,060			11,288,944			162,169
Diluted — Average shares outstanding			125,666,609			71,787,228			116,865,770			66,768,918

EPS Attributable to RC Common Stockholders:
Basic		$	0.53		$	0.61		$	1.66		$	1.47
Diluted		$	0.50		$	0.60		$	1.56		$	1.46

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 EPS for convertible instruments and requires the use of the if-converted method.

Certain investors own OP units in the 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 September 30, 2022 and December 31, 2021, the non-controlling interest OP unit holders owned 1,632,924 and 293,003 OP units, respectively.