Gladstone Commercial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share of Common Stock

Earnings per Share of Common Stock

9 Months Ended

Sep. 30, 2011

Earnings per Share of Common Stock [Abstract]

3.	Earnings per Share of Common Stock

The following tables set forth the computation of basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2011 and 2010. The Company computed basic earnings per share for the three and nine months ended September 30, 2011 and 2010 using the weighted average number of shares outstanding during the periods. Diluted earnings per share for the three and nine months ended September 30, 2011 and 2010, reflects additional shares of common stock, related to our convertible senior common stock, that would have been outstanding if dilutive potential shares of common stock had been issued, as well as an adjustment to net income available to common stockholders as applicable to common stockholders that would result from their assumed issuance.


	For the three months ended September 30,				For the nine months ended September 30,
	2011		2010		2011		2010

Calculation of basic earnings per share of common stock:

Net income available to common stockholders	$	709	$	1,001	$	1,482	$	1,046

Denominator for basic weighted average shares of common stock		10,936		8,563		9,998		8,556

Basic earnings per share of common stock	$	0.07	$	0.12	$	0.15	$	0.12


Calculation of diluted earnings per share of common stock:

Net income available to common stockholders	$	709	$	1,001	$	1,482	$	1,046
Add: Income impact of assumed conversion of senior common stock		16		4		46		5

Net income available to common stockholders plus assumed conversions	$	725	$	1,005	$	1,528	$	1,051

Denominator for basic weighted average shares of common stock		10,936		8,563		9,998		8,556
Effect of convertible senior common stock		52		14		52		5

Denominator for diluted weighted average shares of common stock		10,988		8,577		10,050		8,561


Diluted earnings per share of common stock	$	0.07	$	0.12	$	0.15	$	0.12