NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 12. EARNINGS PER SHARE A reconciliation of the numerators and denominators in computing earnings per share in accordance with Statement of Financial Accounting Standards No. 128, “Earnings per Share”, for the years ended December 31, 2003, 2002 and 2001 is set forth as follows (in thousands, except per share amounts): 2003 2002 2001 NUMERATOR Income from continuing operations $ 12,865 $ 8,379 $ 5,278 Less applicable preferred share dividends (806) (1,771) (1,771) Income from continuing operations available  to common shareholders – basic and diluted 12,059 6,608 3,507 Discontinued operations (16) 2,628 1,834 Net income available to common shareholders- basic and diluted $ 12,043 $ 9,236 $ 5,341 DENOMINATOR Basic weighted average common shares 10,051 8,322 7,926 Effect of outstanding share and unit options 232 192 22 Diluted weighted average common shares 10,283 8,514 7,948 Basic earnings per common share Income from continuing operations $ 1.20 $ .79 $ .44 Discontinued operations — .32 .23 Net income $ 1.20 $ 1.11 $ .67 Diluted earnings per common share Income from continuing operations $ 1.17 $ .77 $ .44 Discontinued operations — .31 .23 Net income $ 1.17 $ 1.08 $ .67 Options to purchase common shares excluded from the computation of diluted earnings per share dur- ing 2002 and 2001 because the exercise price was greater than the average market price of the com- mon shares totaled 235,000 and 1,244,000 shares, respectively. The assumed conversion of the pre- ferred shares as of the beginning of each year would have been anti-dilutive. The assumed conversion of the Units held by TFLP as of the beginning of the year, which would result in the elimination of earnings allocated to the minority interest in the Operating Partnership, would have no impact on earnings per share since the allocation of earnings to an Operating Partnership Unit is equivalent to earnings allocated to a common share. We have a non-qualified and incentive share option plan (“The Share Option Plan”) and the Operating Partnership has a non-qualified Unit option plan (“The Unit Option Plan”). Units received upon exercise of Unit options are exchangeable for common shares. Effective January 1, 2003, we adopted the fair value recognition provisions of FAS 123. Under the modified prospective method of adoption selected by us under the provisions of FAS 148, compensation cost recognized in 2003 is the same as that which would have been recognized had the recognition provisions of FAS 123 been applied from its original effective date. In accordance with FAS 148, results for prior periods have not been restated.  13. EMPLOYEE BENEFIT PLANS 56 | 2003 ANNUAL REPORT