All shares of the REIT's Series B preferred stock will convert on Dec. 4 into common shares of the company, based on a formula of one share of common stock for each outstanding share of Series B preferred. There are 21.3 million shares of Series B Preferred outstanding.

The San Diego-based company's financial reports have been including these shares in the diluted earnings per share calculations. Excel Legacy is a real estate investment trust that buys, sells, manages and develops a variety of commercial property types.

Over the last several months, the company has been going through a process of selling off assets and using the proceeds to pay off debtwhile at the same time investing in its larger developments and repurchasing its common stock.