Note 11. Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) attributable to the Company’s common shareholders by the weighted average number of common shares outstanding for the period including participating securities (restricted shares issued pursuant to the Company’s share-based compensation program are considered participating securities, as such shares have non-forfeitable rights to receive dividends). Unvested restricted shares are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the common shareholders. For the three months ended September 30, 2014 and 2013, the Company had 3.7 million and 3.9 million, respectively, of weighted average unvested restricted shares outstanding. For the nine months ended September 30, 2014 and 2013, the Company had 3.7 million and 3.8 million, respectively, of weighted average unvested restricted shares outstanding. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2014 and 2013, respectively:


	Three months ended September 30,		Nine months ended September 30,
	2014	2013	2014	2013
Numerator
Income (loss) from continuing operations	$ 5,938,000	$ (884,000)	$ 13,341,000	$ 5,332,000
Preferred stock dividends	(3,602,000)	(3,602,000)	(10,806,000)	(10,811,000)
Preferred stock redemption costs	-	-	-	(1,166,000)
Net loss attributable to noncontrolling interests	75,000	63,000	287,000	170,000
Net earnings allocated to unvested shares	(183,000)	(196,000)	(641,000)	(567,000)
Income (loss) from continuing operations attributable to vested
common shares	2,228,000	(4,619,000)	2,181,000	(7,042,000)
(Loss) income from discontinued operations, net of noncontrolling
interests, attributable to vested common shares	(228,000)	944,000	11,004,000	3,061,000
Net income (loss) attributable to vested common shares outstanding	$ 2,000,000	$ (3,675,000)	$ 13,185,000	$ (3,981,000)

Denominator
Weighted average number of vested common shares outstanding	75,547,000	68,365,000	75,233,000	68,350,000

Earnings (loss) per vested common share, basic and diluted
Continuing operations	$ 0.03	$ (0.07)	$ 0.03	$ (0.10)
Discontinued operations	$ (0.00)	$ 0.02	$ 0.15	$ 0.04
	$ 0.03	$ (0.05)	$ 0.18	$ (0.06)

Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. The net loss attributable to noncontrolling interests of the Operating Partnership has been excluded from the numerator and the related OP Units have been excluded from the denominator for the purpose of calculating diluted EPS as there would have been no effect had such amounts been included. The weighted average number of OP Units outstanding was 395,000 and 252,000 for the three months ended September 30, 2014 and 2013, respectively, and 447,000 and 271,000 for the nine months ended September 30, 2014 and 2013, respectively.