Earnings per Share

3 Months Ended

Mar. 31, 2021

17. Earnings per Share

The following table provides a reconciliation of net income (loss) 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
	March 31,
	2021		2020
Basic Earnings (Loss)
Income (loss) attributable to STWD common stockholders	$	111,378	$	(66,769)
Less: Income attributable to participating shares not already deducted as non-controlling interests		(1,925)		(1,222)
Basic earnings (loss)	$	109,453	$	(67,991)

Diluted Earnings (Loss)
Income (loss) attributable to STWD common stockholders	$	111,378	$	(66,769)
Less: Income attributable to participating shares not already deducted as non-controlling interests		(1,925)		(1,222)
Add: Interest expense on Convertible Notes		2,916		*
Diluted earnings (loss)	$	112,369	$	(67,991)

Number of Shares:
Basic — Average shares outstanding		283,319		280,990
Effect of dilutive securities — Convertible Notes		9,649		*
Effect of dilutive securities — Contingently issuable shares		263		—
Diluted — Average shares outstanding		293,231		280,990

Earnings (Loss) Per Share Attributable to STWD Common Stockholders:
Basic	$	0.39	$	(0.24)
Diluted	$	0.38	$	(0.24)

*Our Convertible Notes were not dilutive for the three months ended March 31, 2020.

As of March 31, 2021 and 2020, participating shares of 14.6 million and 13.2 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at both March 31, 2021 and 2020 included 10.6 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 16.