Earnings per Share

3 Months Ended

Mar. 31, 2022

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 March 31,
	2022		2021
Basic Earnings
Income attributable to STWD common stockholders	$	324,599	$	111,378
Less: Income attributable to participating shares not already deducted as non-controlling interests	(8,869)		(1,925)
Basic earnings	$	315,730	$	109,453

Diluted Earnings
Income attributable to STWD common stockholders	$	324,599	$	111,378
Less: Income attributable to participating shares not already deducted as non-controlling interests	(8,869)		(1,925)
Add: Interest expense on Convertible Notes	2,904		2,916
Add: Undistributed earnings to participating shares	7,342		—
Less: Undistributed earnings reallocated to participating shares	(7,109)		—
Diluted earnings	$	318,867	$	112,369

Number of Shares:
Basic — Average shares outstanding	302,944		283,319
Effect of dilutive securities — Convertible Notes	9,649		9,649
Effect of dilutive securities — Contingently issuable shares	605		263
Effect of dilutive securities — Unvested non-participating shares	131		—
Diluted — Average shares outstanding	313,329		293,231

Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	1.04	$	0.39
Diluted	$	1.02	$	0.38

As of March 31, 2022 and 2021, participating shares of 13.0 million and 14.6 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 March 31, 2022 and 2021 included 9.8 million and 10.6 million potential shares, respectively, of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 17.