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

Annual report pursuant to Section 13 and 15(d)

(Loss) Earnings per Share of Common Stock

(Loss) Earnings per Share of Common Stock

12 Months Ended

Dec. 31, 2022

(Loss) Earnings per Share of Common Stock

The following tables set forth the computation of basic and diluted (loss) earnings per share of common stock for the years ended December 31, 2022, 2021 and 2020, 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 (loss) earnings per share for the years ended December 31, 2022, 2021 and 2020, respectively, using the weighted average number of shares outstanding during the periods. Diluted (loss) earnings per share for the years ended December 31, 2022, 2021 and 2020, 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 (loss) income (attributable) available 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,
	2022		2021		2020
Calculation of basic (loss) earnings per share of common stock:
Net (loss) income (attributable) available to common stockholders	$	(3,039)	$	(4,554)	$	3,149
Denominator for basic weighted average shares of common stock (1)	38,950,734		36,537,306		34,040,085
Basic (loss) earnings per share of common stock	$	(0.08)	$	(0.12)	$	0.09
Calculation of diluted (loss) earnings per share of common stock:
Net (loss) income (attributable) available to common stockholders	$	(3,039)	$	(4,554)	$	3,149
Net (loss) income (attributable) available to common stockholders plus assumed conversions (2)	$	(3,039)	$	(4,554)	$	3,149
Denominator for basic weighted average shares of common stock (1)	38,950,734		36,537,306		34,040,085
Effect of convertible Senior Common Stock (2)	—		—		—
Denominator for diluted weighted average shares of common stock (2)	38,950,734		36,537,306		34,040,085
Diluted (loss) earnings per share of common stock	$	(0.08)	$	(0.12)	$	0.09

(1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 294,941, 316,987, and 502,586 for the years ended December 31, 2022, 2021, and 2020, respectively.

(2)We excluded convertible shares of Senior Common Stock of 363,246, 503,962 and 628,263 from the calculation of diluted earnings per share for the years ended December 31, 2022, 2021 and 2020, respectively, because it was anti-dilutive.