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

3 Months Ended

Mar. 31, 2024

The following tables set forth the computation of basic and diluted earnings per share of common stock for the three months ended March 31, 2024 and 2023. The operating partnership units in the Operating Partnership (“OP Units”) held by holders who do not control the Operating Partnership (“Non-controlling OP Unitholders”) (which may be redeemed for shares of common stock) have been excluded from the diluted earnings per share calculations, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of earnings 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 per share for the three months ended March 31, 2024 and 2023 using the weighted average number of shares outstanding during the respective periods. Diluted earnings per share for the three months ended March 31, 2024 and 2023 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect of conversion would be dilutive, that would have been outstanding if such dilutive potential shares of common stock had been issued, as well as an adjustment to net earnings 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 three months ended March 31,
	2024		2023
Calculation of basic earnings per share of common stock:
Net income available to common stockholders	$	304	$	41
Denominator for basic weighted average shares of common stock (1)	40,003,481		39,922,359
Basic earnings per share of common stock	$	0.01	$	—
Calculation of diluted earnings per share of common stock:
Net income available to common stockholders	$	304	$	41

Net earnings available to common stockholders plus assumed conversions (2)	$	304	$	41
Denominator for basic weighted average shares of common stock (1)	40,003,481		39,922,359
Effect of convertible Senior Common Stock (2)	—		—
Denominator for diluted weighted average shares of common stock (2)	40,003,481		39,922,359
Diluted earnings per share of common stock	$	0.01	$	—

(1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 310,643 for the three months ended March 31, 2024 and 391,468 for the three months ended March 31, 2023.

(2)We excluded convertible shares of Senior Common Stock of 342,247 and 345,687 from the calculation of diluted earnings per share for the three months ended March 31, 2024 and 2023, respectively, because they were anti-dilutive.