Earnings Per Share

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and 2014, the Company had 3.5 million and 3.7 million, respectively, of weighted average unvested restricted shares outstanding. For the six months ended June 30, 2015 and 2014, the Company had 3.6 million and 3.7 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 six months ended June 30, 2015 and 2014, respectively:


	Three months ended June 30,		Six months ended June 30,
	2015	2014	2015	2014
Numerator
Income from continuing operations	$ 5,416,000	$ 6,788,000	$ 8,650,000	$ 7,692,000
Preferred stock dividends	(3,602,000)	(3,602,000)	(7,204,000)	(7,204,000)
Net loss attributable to noncontrolling interests	101,000	128,000	182,000	212,000
Net earnings allocated to unvested shares	(181,000)	(619,000)	(358,000)	(524,000)
Income from continuing operations attributable to vested
common shares	1,734,000	2,695,000	1,270,000	176,000
Income from discontinued operations, net of noncontrolling
interests, attributable to vested common shares	-	10,144,000	164,000	10,943,000
Net income attributable to vested common shares outstanding	$ 1,734,000	$ 12,839,000	$ 1,434,000	$ 11,119,000

Denominator
Weighted average number of vested common shares outstanding	81,488,000	75,531,000	81,103,000	75,076,000

Earnings per vested common share, basic and diluted
Continuing operations	$ 0.02	$ 0.04	$ 0.02	$ 0.00
Discontinued operations	$ 0.00	$ 0.13	$ 0.00	$ 0.15
	$ 0.02	$ 0.17	$ 0.02	$ 0.15

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 were 393,000 and 465,000 for the three months ended June 30, 2015 and 2014, respectively, and 393,000 and 472,000 for the six months ended June 30, 2015 and 2014, respectively.