Gladstone Commercial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings per Share of Common Stock (Tables)

Earnings per Share of Common Stock (Tables)

12 Months Ended

Dec. 31, 2020

Basic and Diluted Loss Per Share of Common Stock

The following tables set forth the computation of basic and diluted earnings (loss) per share of common stock for the years ended December 31, 2020, 2019 and 2018, respectively. The OP Units held by Non-controlling OP Unitholders (which may be redeemed for shares of common stock) have been excluded from the diluted earnings per share calculation, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of income would also be added back to net income. Net income figures are presented net of such non-controlling interests in the earnings per share calculation.

We computed basic earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018, respectively, using the weighted average number of shares outstanding during the periods. Diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018, reflects additional shares of common stock related to our convertible Senior Common Stock, if the effect would be dilutive, that would have been outstanding if dilutive potential shares of common stock had been

issued, as well as an adjustment to net income (loss) available (attributable) to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts).


	For the year ended December 31,
	2020		2019		2018
Calculation of basic earnings (loss) per share of common stock:
Net income (loss) available (attributable) to common stockholders	$	3,149	$	(4,760)	$	973
Denominator for basic weighted average shares of common stock (1)	34,040,085		30,695,902		28,675,934
Basic earnings (loss) per share of common stock	$	0.09	$	(0.16)	$	0.03
Calculation of diluted earnings (loss) per share of common stock:
Net income (loss) available (attributable) to common stockholders	$	3,149	$	(4,760)	$	973
Net income (loss) available (attributable) to common stockholders plus assumed conversions (2)	$	3,149	$	(4,760)	$	973
Denominator for basic weighted average shares of common stock (1)	34,040,085		30,695,902		28,675,934
Effect of convertible Senior Common Stock (2)	—		—		—
Denominator for diluted weighted average shares of common stock (2)	34,040,085		30,695,902		28,675,934
Diluted earnings (loss) per share of common stock	$	0.09	$	(0.16)	$	0.03

(1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 502,586, 700,924, and 128,233 for the years ended December 31, 2020, 2019, and 2018, respectively.

(2)We excluded convertible shares of Senior Common Stock of 628,263, 674,611 and 724,336 from the calculation of diluted earnings per share for the years ended December 31, 2020, 2019 and 2018, respectively, because it was anti-dilutive.