The following table provides a reconciliation of both net income and the number of common shares used in the computation of basic and diluted income per share. We use the two-class method in calculating both basic and diluted earnings per share as our unvested restricted stock units (refer to Note 17) are participating securities as defined in GAAP (amounts in thousands, except share and per share amounts):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net income attributable to Starwood Property Trust, Inc.	$	89,715		$	50,212		$	214,239		$	144,861
Net income allocated to participating securities	(310		)	(275		)	(1,133		)	(980		)
Numerator for basic and diluted net income per share	$	89,405		$	49,937		$	213,106		$	143,881
Basic weighted average shares outstanding	171,520,231			116,673,477			156,614,647			107,077,837
Diluted weighted average shares outstanding(1)	172,394,882			117,381,559			157,650,258			107,958,047
Basic income per share	$	0.52		$	0.43		$	1.36		1.34
Diluted income per share	$	0.52		$	0.43		$	1.36		1.34

(1) The weighted average number of diluted shares outstanding includes the impact of (i) unvested restricted stock units and restricted stock awards totaling 712,361 and 478,947 as of September 30, 2013 and September 30, 2012, respectively, and (ii) 99,601 and 47,736 shares that were estimated to be issued in connection with the incentive fee payable to the Manager for the quarters ended September 30, 2013 and September 30, 2012, respectively.