Earnings Per Share

12 Months Ended

Dec. 31, 2024

11. Earnings Per Share

Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income or loss attributable to common stockholders by the weighted average shares of common stock outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented. Unvested restricted shares of common stock and unvested LTIP units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. The following table sets forth the computation of our basic and diluted earnings per share of common stock for the years ended December 31, 2024, 2023 and 2022 (dollars in thousands, except per share amounts):


	For the years ended December 31,
	2024			2023			2022
Numerator
Net income	$	20,578		$	21,060		$	35,562
Less: Non-controlling interest in Operating Partnership		(1,025	)		(2,256	)		(4,088	)
Net income available to Easterly Government Properties, Inc.		19,553			18,804			31,474
Less: Dividends on participating securities		(554	)		(599	)		(546	)
Net income available to common stockholders	$	18,999		$	18,205		$	30,928
Denominator for basic EPS		103,443,951			94,264,166			90,613,966
Dilutive effect of share-based compensation awards		19,548			18,128			19,336
Dilutive effect of LTIP units (1)		295,047			269,685			315,399
Dilutive effect of shares issuable under forward sales agreements (2)		—			4,076			—
Denominator for diluted EPS		103,758,546			94,556,055			90,948,701
Basic EPS	$	0.18		$	0.19		$	0.34
Diluted EPS	$	0.18		$	0.19		$	0.34

(1)

During the years ended December 31, 2024, 2023 and 2022, there were approximately 415,291, 387,010 and 314,529 unvested performance-based LTIP units, respectively, that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

(2)

During the years ended December 31, 2024 and 2023, there were no shares of underlying unsettled forward sales transactions that were included in the computation of diluted earnings per share because to do so would have been antidilutive for the period. During the year ended December 31, 2022, 4,259,000 shares of underlying unsettled forward sales transactions that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.