The Company uses the two-class method in calculating basic and diluted earnings per share. Net income/(loss) is allocated between our common stock and other participating securities based on their participation rights. Diluted net income per share has been computed using the weighted average number of shares of common stock outstanding and other dilutive securities. The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations and the calculation of basic and diluted earnings per share for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data):


	Three Months Ended March 31,
Basic Numerator	2026		2025
Net income/(loss)	$	12,292	$	23,705
Net (income)/loss from non-controlling interest	(312)		353
Less: Preferred stock dividends	(5,916)		(6,748)

Net income/(loss) applicable to common stock	$	6,064	$	17,310
Less: Participating securities' share in earnings	(326)		(524)
Basic net income/(loss) applicable to common stockholders	$	5,738	$	16,786

Diluted Numerator
Basic net income/(loss) applicable to common stockholders	$	5,738	$	16,786

Diluted net income/(loss) applicable to common stockholders	$	5,738	$	16,786


Denominator
Weighted-average common shares outstanding for basic earnings per share	79,926,118		82,053,686
Weighted-average common shares outstanding for diluted earnings per share(1)(2)	79,926,118		82,053,686
Basic earnings per share	$	0.07	$	0.20
Diluted earnings per share	$	0.07	$	0.20

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(1) The effect of the weighted average dilutive shares excluded restricted shares and stock units for the three months ended March 31, 2026 and 2025 of 76,977 and 221,663, respectively, as the effect was anti-dilutive. Additionally, the effect of dilutive shares excluded 5,370,498 weighted average common share equivalents of convertible preferred stock for the three months ended March 31, 2026 and 2025, respectively, as the effect was anti-dilutive.

(2) The effect of the weighted average dilutive shares excluded Class A units of FBRT OP LLC for the three months ended March 31, 2026 of 8,385,951 as the effect was anti-dilutive.