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, 2024

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, 2024, 2023 and 2022. All per share amounts, common shares outstanding and common equity-based awards for the year ended December 31, 2022 have been adjusted on a retroactive basis to reflect the reverse stock split.


	Year Ended
	December 31,
(in thousands, except share data)		2024		2023		2022
Basic Earnings (Loss) Per Share:


Net income (loss)		$	298,168	$	(106,371)	$	220,239


Dividends on preferred stock		(47,136)		(48,607)		(53,607)
Gain on repurchase and retirement of preferred stock		644		2,973		20,149
Dividends and undistributed earnings allocated to participating restricted stock units		(1,693)		(1,220)		(1,203)
Net income (loss) attributable to common stockholders, basic		$	249,983	$	(153,225)	$	185,578
Basic weighted average common shares		103,562,824		95,672,143		86,179,418
Basic earnings (loss) per weighted average common share		$	2.41	$	(1.60)	$	2.15
Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to common stockholders, basic		$	249,983	$	(153,225)	$	185,578
Reallocation impact of undistributed earnings to participating restricted stock units		(77)		—		—

Interest expense attributable to convertible notes		18,199		—		19,382
Net income (loss) attributable to common stockholders, diluted		$	268,105	$	(153,225)	$	204,960
Basic weighted average common shares		103,562,824		95,672,143		86,179,418
Effect of dilutive shares issued in an assumed vesting of performance share units		477,465		—		157,591
Effect of dilutive shares issued in an assumed conversion		9,049,219		—		9,739,166
Diluted weighted average common shares		113,089,508		95,672,143		96,076,175
Diluted earnings (loss) per weighted average common share		$	2.37	$	(1.60)	$	2.13

For the year ended December 31, 2024, participating RSUs were included in the calculations of basic and diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method. For the years ended December 31, 2023 and 2022, excluded from the calculation of diluted earnings per share was the effect of adding undistributed earnings reallocated to 644,908 and 428,408 weighted average participating RSUs as their inclusion would have been antidilutive.

For the year ended December 31, 2024, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method. For the year ended December 31, 2023, excluded from the calculation of diluted earnings per share was the effect of adding 331,051 weighted average common share equivalents related to the assumed vesting of outstanding PSUs, as their inclusion would have been antidilutive. For the year ended December 31, 2022, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the year ended December 31, 2024, the assumed conversion of the Company’s convertible senior notes was included in the calculation of diluted earnings per share under the if-converted method. For the years ended December 31, 2023 and 2022, excluded from the calculation of diluted earnings per share was the effect of adding back $18.8 million and $0.2 million of interest expense and 9,406,519 and 87,137 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. For the year ended December 31, 2022, only the Company’s convertible senior notes due 2022, which matured in January 2022, were excluded from the calculation of diluted earnings per share, and the assumed conversion of the Company’s 2026 notes was included in the calculation of diluted earnings per share under the if-converted method.