Earnings per Share

3 Months Ended

Mar. 31, 2023

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,
	2023		2022
Basic Earnings
Income attributable to STWD common stockholders	$	51,974	$	324,599
Less: Income attributable to participating shares not already deducted as non-controlling interests	(1,811)		(8,869)
Basic earnings	$	50,163	$	315,730

Diluted Earnings
Income attributable to STWD common stockholders	$	51,974	$	324,599
Less: Income attributable to participating shares not already deducted as non-controlling interests	(1,811)		(8,869)
Add: Interest expense on Convertible Notes	—		2,904
Add: Undistributed earnings to participating shares	—		7,342
Less: Undistributed earnings reallocated to participating shares	—		(7,109)
Diluted earnings	$	50,163	$	318,867

Number of Shares:
Basic — Average shares outstanding	308,408		302,944
Effect of dilutive securities — Convertible Notes	—		9,649
Effect of dilutive securities — Contingently issuable shares	357		605
Effect of dilutive securities — Unvested non-participating shares	231		131
Diluted — Average shares outstanding	308,996		313,329

Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.16	$	1.04
Diluted	$	0.16	$	1.02

As of March 31, 2023 and 2022, participating shares of 13.5 million and 13.0 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, 2023 and 2022 included 9.8 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 17.