Earnings per Share

12 Months Ended

Dec. 31, 2021

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 Year Ended December 31,
		2021		2020		2019
Basic Earnings
Income attributable to STWD common stockholders		$	447,739	$	331,689	$	509,664
Less: Income attributable to participating shares not already deducted as non-controlling interests		(6,808)		(5,216)		(3,873)
Basic earnings		$	440,931	$	326,473	$	505,791

Diluted Earnings
Income attributable to STWD common stockholders		$	447,739	$	331,689	$	509,664
Less: Income attributable to participating shares not already deducted as non-controlling interests		(6,808)		(5,216)		(3,873)
Add: Interest expense on Convertible Notes		11,619		*		12,354


Diluted earnings		$	452,550	$	326,473	$	518,145

Number of Shares:
Basic — Average shares outstanding		285,942		281,978		279,337
Effect of dilutive securities — Convertible Notes		9,649		*		9,805
Effect of dilutive securities — Contingently issuable shares		1,037		383		360
Effect of dilutive securities — Unvested non-participating shares		198		122		210
Diluted — Average shares outstanding		296,826		282,483		289,712

Earnings Per Share Attributable to STWD Common Stockholders:
Basic		$	1.54	$	1.16	$	1.81
Diluted		$	1.52	$	1.16	$	1.79

______________________________________________________________________________________________________________________

*Our Convertible Notes were not dilutive for the year ended December 31, 2020.

As of December 31, 2021, 2020 and 2019, participating shares of 13.0 million, 14.4 million and 13.3 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 December 31, 2021, 2020 and 2019 included 9.8 million, 10.6 million and 11.0 million potential shares, respectively, of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 18.