Earnings per Share

12 Months Ended

Dec. 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 Year Ended December 31,
	2023		2022		2021
Basic Earnings
Income attributable to STWD common stockholders	$	339,213	$	871,475	$	447,739
Less: Income attributable to participating shares not already deducted as non-controlling interests	(6,412)		(17,113)		(6,808)
Basic earnings	$	332,801	$	854,362	$	440,931

Diluted Earnings
Income attributable to STWD common stockholders	$	339,213	$	871,475	$	447,739
Less: Income attributable to participating shares not already deducted as non-controlling interests	(6,412)		(17,113)		(6,808)
Add: Interest expense on Convertible Notes	*		11,632		11,619
Add: Undistributed earnings to participating shares	—		11,229		—
Less: Undistributed earnings reallocated to participating shares	—		(10,880)		—
Diluted earnings	$	332,801	$	866,343	$	452,550

Number of Shares:
Basic — Average shares outstanding	309,771		305,524		285,942
Effect of dilutive securities — Convertible Notes	*		9,649		9,649
Effect of dilutive securities — Contingently issuable shares	450		386		1,037
Effect of dilutive securities — Unvested non-participating shares	286		169		198
Diluted — Average shares outstanding	310,507		315,728		296,826

Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	1.07	$	2.80	$	1.54
Diluted	$	1.07	$	2.74	$	1.52

______________________________________________________________________________________________________________________

*Our Convertible Notes were not dilutive for the year ended December 31, 2023.

As of December 31, 2023, 2022 and 2021, participating shares of 12.7 million, 13.7 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 December 31, 2023, 2022 and 2021 included 9.7 million, 9.8 million and 9.8 million potential shares, respectively, of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 18.