Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted-average number of unvested restricted shares and unvested performance units outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. The potential shares consist of the unvested restricted share grants and unvested performance units, calculated using the treasury stock method, and convertible Series A Preferred Shares, calculated using the if-converted method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating shares and are considered in the computation of earnings per share pursuant to the two-class method. If there were any undistributed earnings allocable to the participating shares, they would be deducted from net income attributable to common shareholders used in the basic and diluted earnings per share calculations.

The limited partners’ outstanding OP units (which may be redeemed for common shares under certain circumstances) have been excluded from the diluted earnings per share calculation as there was no effect on the amounts for the three and six months ended June 30, 2026 and 2025, since the limited partners’ share of income would also be added back to net income attributable to common shareholders.


	For the three months ended June 30,				For the six months ended June 30,
	2026		2025		2026		2025
Numerator:
Net income attributable to RLJ	$	31,036	$	28,453	$	30,895	$	31,815
Less: Preferred dividends	(6,279)		(6,279)		(12,557)		(12,557)
Less: Dividends paid on unvested restricted shares	(369)		(300)		(696)		(586)
Less: Undistributed earnings attributable to unvested restricted shares	(31)		—		—		—
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares	$	24,357	$	21,874	$	17,642	$	18,672

Denominator:
Weighted-average number of common shares - basic	149,883,674		149,532,971		149,605,007		150,217,440
Unvested restricted shares	422,357		55,741		387,083		133,859
Unvested performance units	622,652		10,241		390,189		3,784
Weighted-average number of common shares - diluted	150,928,683		149,598,953		150,382,279		150,355,083

Net income per share attributable to common shareholders - basic	$	0.16	$	0.15	$	0.12	$	0.12

Net income per share attributable to common shareholders - diluted	$	0.16	$	0.15	$	0.12	$	0.12