Three Months Ended June 30,

 

2022

 

2021

 

$

 

Per

Share

 

$

 

Per

Share

 

(dollars in thousands, except per share amounts)

Net income attributable to controlling stockholders (1)

$ (18,449)

 

$   (0.21)

 

$ 15,974

 

$   0.20

Distributable earnings adjustments:

 

 

 

 

 

 

 

Reverse GAAP (income) loss from equity method investments

19,585

 

 

 

(22,252)

 

 

Add equity method investments earnings

  36,048

 

 

 

  26,834

 

 

Equity-based compensation charges 

    12,393

 

 

 

   4,289

 

 

Provision for loss on receivables (2)

      8,064

 

 

 

     906

 

 

Gain (loss) on debt modification or extinguishment

        —

 

 

 

    14,584

 

 

Amortization of intangibles (3)

    761

 

 

 

     823

 

 

Non-cash provision (benefit) for income taxes

(4,789)

5,981

Net income attributable to non-controlling interest

(89)

434

Distributable earnings (4)

$ 53,524

 

$   0.60

 

$ 47,573

 

$   0.57

(1) The per share amounts represent GAAP diluted earnings per share and is the most comparable GAAP measure to our distributable earnings per share.

(2) In addition to these provisions, in the second quarter of 2022 we wrote-off two commercial receivables with a combined total carrying value of approximately $8 million which represented assignments of land lease payments from two wind projects that we had originated in 2014. In 2017, the operator of the projects terminated the lease, at which time we filed a legal claim and placed these assets on non-accrual status. In 2019, we received a court decision indicating that the owners of the projects were within their rights under the contract terms to terminate the lease which impacts the land lease assignments to us, at which time we reserved the receivables for their full carrying amount. In the second quarter of 2022, we received a court decision indicating that our appeal was not successful, and accordingly wrote off the full amount of the receivable. We have excluded the write off from Distributable earnings due to the infrequent occurrence of credit losses as well as the unique nature of the receivables, as the assignment of land lease payments from wind projects represent a small portion of our total portfolio.

(3) Adds back non-cash amortization of lease and pre-IPO intangibles.

(4) Distributable earnings per share for the six months ended June 30, 2022 and 2021, are based on 88,100,480 shares and 82,723,380 shares outstanding, respectively, which represents the weighted average number of fully-diluted shares outstanding including our restricted stock awards, restricted stock units, long-term incentive plan units, and the non-controlling interest in our Operating Partnership. We include any potential common stock issuances related to share based compensation units in the amount we believe is reasonably certain to vest. As it relates to convertible notes, we will assess the market characteristics around the instrument to determine if it is more akin to debt or equity based on the value of the underlying shares upon conversion. If the instrument is more debt-like then we will include any related interest expense and exclude the underlying shares issuable upon conversion of the instrument. If the instrument is more equity-like and is more dilutive when treated as equity then we will exclude any related interest expense and include the weighted average shares underlying the instrument.