TWO Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 31, 2021

The following table presents a reconciliation of the earnings (loss) and shares used in calculating basic and diluted earnings (loss) per share for the years ended December 31, 2021, 2020 and 2019:


	Year Ended
	December 31,
(in thousands, except share data)		2021		2020		2019
Basic Earnings (Loss) Per Share:


Net (loss) income		$	187,227	$	(1,630,135)	$	323,962


Dividends on preferred stock		58,458		75,802		75,801
Dividends and undistributed earnings allocated to participating restricted stock units		731		—		—
Net (loss) income attributable to common stockholders, basic		$	128,038	$	(1,705,937)	$	248,161
Basic weighted average common shares		297,772,001		273,600,947		267,826,739
Basic (loss) earnings per weighted average common share		$	0.43	$	(6.24)	$	0.93
Diluted Earnings (Loss) Per Share:
Net (loss) income attributable to common stockholders, basic		$	128,038	$	(1,705,937)	$	248,161
Reallocation impact of undistributed earnings to participating restricted stock units		—		—		—

Interest expense attributable to convertible notes (1)		—		—		—
Net income (loss) attributable to common stockholders, diluted		$	128,038	$	(1,705,937)	$	248,161
Basic weighted average common shares		297,772,001		273,600,947		267,826,739
Effect of dilutive shares issued in an assumed vesting of performance share units		271,537		—		—
Effect of dilutive shares issued in an assumed conversion		—		—		—
Diluted weighted average common shares		298,043,538		273,600,947		267,826,739
Diluted (loss) earnings per weighted average common share		$	0.43	$	(6.24)	$	0.93

___________________

(1)If applicable, includes a nondiscretionary adjustment for the assumed change in the management fee calculation.

For the year ended December 31, 2021, participating RSUs were included in the calculations of basic and diluted earnings per share under the two-class method since it was more dilutive than the alternative treasury stock method. For the year ended December 31, 2021, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method since it was more dilutive than the alternative treasury stock method. The Company did not have any RSUs or PSUs outstanding during the years ended December 31, 2020 and 2019.

For the years ended December 31, 2021, 2020 and 2019, excluded from the calculation of diluted earnings per share was the effect of adding back $28.0 million, $19.2 million and $19.0 million of interest expense and 50,222,268, 18,171,150 and 18,128,792 weighted average common share equivalents, respectively, related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would have been antidilutive.