Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings per Share

Reconciliation of net income from continuing operations and the number of shares of common stock used in the computation of basic EPS and diluted EPS

The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Basic Earnings
Income attributable to STWD common stockholders	$	139,656	$	127,016	$	72,887	$	197,399
Less: Income attributable to participating shares not already deducted as non-controlling interests		(1,143)		(751)		(2,365)		(1,575)
Basic earnings	$	138,513	$	126,265	$	70,522	$	195,824
Diluted Earnings
Income attributable to STWD common stockholders	$	139,656	$	127,016	$	72,887	$	197,399
Less: Income attributable to participating shares not already deducted as non-controlling interests		(1,143)		(751)		(2,365)		(1,575)
Add: Interest expense on Convertible Notes (1)		3,051		3,049		*		6,235
Add: Undistributed earnings to participating shares		120		—		—		—
Less: Undistributed earnings reallocated to participating shares		(116)		—		—		—
Diluted earnings	$	141,568	$	129,314	$	70,522	$	202,059
Number of Shares:
Basic — Average shares outstanding		281,461		279,239		281,225		278,396
Effect of dilutive securities — Convertible Notes (1)		9,649		9,649		*		9,963
Effect of dilutive securities — Unvested non-participating shares		183		184		215		170
Diluted — Average shares outstanding		291,293		289,072		281,440		288,529
Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.49	$	0.45	$	0.25	$	0.70
Diluted	$	0.49	$	0.45	$	0.25	$	0.70

(1) The Company does not intend to fully settle the principal amount of the Convertible Notes in cash upon conversion. Accordingly, under GAAP, the dilutive effect to EPS for the periods presented above is determined using the “if-converted” method whereby interest expense or any loss on extinguishment of our Convertible Notes is added back to the diluted EPS numerator and the full number of potential shares contingently issuable upon their conversion is included in the diluted EPS denominator, if dilutive. Refer to Note 10 for further discussion.

* Our Convertible Notes were not dilutive for the six months ended June 30, 2020.