NOTE 3—EARNINGS PER COMMON SHARE

Basic earnings per share was determined by dividing net income allocable to common stockholders for each year by the weighted average number of shares of common stock outstanding during the applicable year. Net income is also allocated to the unvested restricted stock outstanding during each year, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. Unvested restricted stock is not allocated net losses and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock. The restricted stock units awarded under the Pay-for-Performance program are excluded from the basic earnings per share calculation, as these units are not participating securities (see Note 12).

Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company. For 2016, 2015 and 2014, the diluted weighted average number of shares of common stock includes 114,000, 108,000 and 100,000 shares, respectively (of an aggregate of 200,000 shares) of common stock underlying the restricted stock units awarded pursuant to the Pay-for-Performance Program. These amounts include 100,000 shares that would be issued pursuant to a metric based on the market price and dividends paid at the end of each quarterly period, assuming the end of that quarterly period was the end of the vesting period. Of the remaining 100,000 shares of common stock underlying the restricted stock units awarded under the Pay-for-Performance Program (the "ROC Shares"), 14,000 and 8,000 shares are included in the diluted weighted average in 2016 and 2015, respectively, and as the return on capital performance metric was not satisfied during 2014, none of the ROC Shares were included in such year.

There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock in 2016, 2015 and 2014.

The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts):

	Year Ended December 31,
	2016			2015			2014
Numerator for basic and diluted earnings per share:
Income from continuing operations	$	24,481		$	21,907		$	22,197
Less net income attributable to non-controlling interests		(59	)		(1,390	)		(94	)
Less earnings allocated to unvested restricted stock(a)		(999	)		(852	)		(722	)

Income from continuing operations available for common stockholders		23,423			19,665			21,381
Discontinued operations		—			—			13

Net income available for common stockholders:
basic and diluted	$	23,423		$	19,665		$	21,394


Denominator for basic earnings per share:
Weighted average common shares		16,768			15,971			15,563
Effect of diluted securities:
Restricted stock units awarded under Pay-for- Performance program		114			108			100

Denominator for diluted earnings per share:
Weighted average shares		16,882			16,079			15,663


Earnings per common share, basic	$	1.40		$	1.23		$	1.37


Earnings per common share, diluted	$	1.39		$	1.22		$	1.37


Amounts attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests:
Income from continuing operations	$	24,422		$	20,517		$	22,103
Income from discontinued operations		—			—			13

Net income attributable to One Liberty Properties, Inc.	$	24,422		$	20,517		$	22,116


(a)	Represents an allocation of distributed earnings to unvested restricted stock which, as participating securities, are entitled to receive dividends.