The Company’s Class X OP Units (see Note 11) contain non-forfeitable rights to distributions and are considered to be participating securities and therefore are included in the computation of earnings per share pursuant to the two-class method. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to distributions declared (or accumulated) and participation rights in undistributed earnings. Losses are not allocated to the Class X OP Units because they have not vested and do not have a contractual obligation to share in the Company’s losses. Class C OP Unit distributions are not deducted in the table below since they share in the Company’s losses.

On repurchase of preferred stock, any excess or deficit of the net carrying amount of the preferred stock in the Company’s consolidated balance sheet over or under the fair value of the consideration transferred to the holders of the preferred stock is included in the determination of net income (loss) attributable to common stockholders in the calculation of earnings per share.

The following table presents the computation of the Company’s basic earnings (loss) per share attributable to common stockholders and its diluted earnings (loss) per share attributable to common stockholders and noncontrolling interests, which are Class C OP Units for the years ended December 31, 2025 and 2024 (in thousands, except shares/units and per share data):


	Year Ended December 31,
		2025		2024
Net income		$	554	$	6,493
Net loss (income) attributable to noncontrolling interest in Operating Partnership (1)		484		(475)
Preferred stock dividends		(3,202)		(3,688)
Loss on repurchases of preferred stock		(6)		—
Class X OP Unit distributions		(949)		—
Net (loss) income available to common stockholders used in basic net (loss) income per share		(3,119)		2,330
Net (loss) income attributable to noncontrolling interest in Operating Partnership		(484)		475
Net (loss) income available to common stockholders and noncontrolling interests used in diluted net (loss) income per share/unit		$	(3,603)	$	2,805

Weighted average shares of Common Stock outstanding - basic		10,144,791		9,293,103
Class C OP Units (2)		1,532,047		1,895,871

Weighted average shares and units outstanding - diluted (2)		11,676,838		11,188,974

Earnings (loss) per share attributable to common stockholders:
Basic		$	(0.31)	$	0.25
Earnings (loss) per share attributable to common stockholders and Class C OP Units:
Diluted		$	(0.31)	$	0.25