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 and nine months ended September 30, 2026 and 2025, respectively (in thousands, except share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
Basic Numerator	2026		2025		2026		2025
Net income/(loss)	$	(27,042)	$	17,616	$	1,525	$	65,705
Net (income)/loss from non-controlling interest	358		(302)		(660)		(1,132)
Less: Preferred stock dividends	(5,915)		(6,749)		(17,747)		(20,245)
Net income/(loss) applicable to common stock	$	(32,599)	$	10,565	$	(16,882)	$	44,328
Less: Participating securities' share in earnings	(288)		(510)		(940)		(1,556)
Basic net income/(loss) applicable to common stockholders	$	(32,887)	$	10,055	$	(17,822)	$	42,772

Diluted Numerator
Basic net income/(loss) applicable to common stockholders	$	(32,887)	$	10,055	$	(17,822)	$	42,772
Add: Net income/(loss) from non-controlling interest - OP Units	(192)		747		—		747
Diluted net income/(loss) applicable to common stockholders	$	(33,079)	$	10,802	$	(17,822)	$	43,519


Denominator
Weighted-average common shares outstanding for basic earnings per share	80,287,854		82,214,630		78,861,945		82,150,496
Weighted-average common shares outstanding for diluted earnings per share(1)(2)	80,756,562		90,600,581		78,861,945		84,976,530
Basic earnings per share	$	(0.41)	$	0.12	$	(0.23)	$	0.52
Diluted earnings per share	$	(0.41)	$	0.12	$	(0.23)	$	0.51

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(1) The effect of the weighted average dilutive shares excluded restricted shares and stock units for the three months ended September 30, 2026 and 2025 of 69,131 and 160,572, respectively, as the effect was anti-dilutive. Weighted average dilutive shares excluded restricted shares and stock units as of the nine months ended September 30, 2026 and 2025 of 61,496 and 142,604 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 and nine months ended September 30, 2026 and 2025, respectively, as the effect was anti-dilutive.

(2) The weighted average dilutive shares for the three months ended September 30, 2026 included 468,708 OP Units as the effect was dilutive. The effect of the weighted average dilutive shares excluded OP Units for the nine months ended September 30, 2026 of 5,717,869 as the effect was anti-dilutive.