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; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock. As of December 31, 2017, the shares of common stock underlying the restricted stock units awarded under the 2016 Incentive Plan are excluded from the basic earnings per share calculation, as these units are not participating securities. The restricted stock units issued pursuant to the 2009 and 2016 Incentive Plans are referred to as "RSUs".

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.

See Note 13 for information regarding the Company's equity incentive plans.

The diluted weighted average number of shares of common stock includes common stock underlying the RSUs awarded under the plans identified in the table below:

			Year Ended December 31,
	Number of underlying shares		Year Ended December 31,
	Number of underlying shares		2017			2016		2015
2009 Incentive Plan		200,000		—	(a)		114,000		108,000
2016 Incentive Plan		76,250		71,478	(b)		—		—


(a)	RSUs with respect to 113,584 shares vested on June 30, 2017 and such shares were issued in August 2017.
(b)	Includes 33,353 shares that would be issued pursuant to a return on capital performance metric and 38,125 shares that would be issued pursuant to a stockholder return metric, assuming the end of the quarterly period was the June 30, 2020 vesting date. The remaining 4,772 shares awarded pursuant to the capital performance metric (of a total of 38,125 that were awarded on September 26, 2017) are not included.

There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock in 2017, 2016 and 2015.

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,
	2017			2016			2015
Numerator for basic and diluted earnings per share:
Net income	$	24,249		$	24,481		$	21,907
Less net income attributable to non-controlling interests		(102	)		(59	)		(1,390	)
Less earnings allocated to unvested restricted stock(a)		(1,072	)		(999	)		(852	)

Net income available for common stockholders: basic and diluted	$	23,075		$	23,423		$	19,665


Denominator for basic earnings per share:
Weighted average number of common shares		17,944			16,768			15,971
Effect of diluted securities:
RSUs		103			114			108

Denominator for diluted earnings per share:
Weighted average number of shares		18,047			16,882			16,079


Earnings per common share, basic	$	1.29		$	1.40		$	1.23


Earnings per common share, diluted	$	1.28		$	1.39		$	1.22


Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests	$	24,147		$	24,422		$	20,517


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