Earnings per Share

3 Months Ended

Mar. 31, 2024

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,
	2024		2023
Basic Earnings
Income attributable to STWD common stockholders	$	154,332	$	51,974
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,576)		(1,811)
Basic earnings	$	151,756	$	50,163

Diluted Earnings
Income attributable to STWD common stockholders	$	154,332	$	51,974
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,576)		(1,811)
Add: Interest expense on Convertible Notes	7,005		*
Add: Undistributed earnings to participating shares	68		—
Less: Undistributed earnings reallocated to participating shares	(65)		—
Diluted earnings	$	158,764	$	50,163

Number of Shares:
Basic — Average shares outstanding	311,827		308,408
Effect of dilutive securities — Convertible Notes	18,344		*
Effect of dilutive securities — Contingently issuable shares	469		357
Effect of dilutive securities — Unvested non-participating shares	200		231
Diluted — Average shares outstanding	330,840		308,996

Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.49	$	0.16
Diluted	$	0.48	$	0.16

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* Our Convertible Notes were not dilutive for the three months ended March 31, 2023.

As of March 31, 2024 and 2023, participating shares of 13.8 million and 13.5 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, 2024 and 2023 included 9.7 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 17.