Earnings Per Share

3 Months Ended

Mar. 31, 2020

8. Earnings Per Share

Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income 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 the Company’s basic and diluted earnings per share of common stock for the three months ended March 31, 2020 and 2019 (amounts in thousands, except per share amounts):

	For the three months ended March 31,
	2020			2019
Numerator
Net income (loss)	$	1,918		$	(481	)
Less: Non-controlling interest in Operating Partnership		(221	)		65
Net income (loss) available to Easterly Government Properties, Inc.		1,697			(416	)
Less: Dividends on participating securities		(57	)		(28	)
Net income (loss) available to common stockholders	$	1,640		$	(444	)
Denominator for basic EPS		74,892,711			61,225,926
Dilutive effect of share-based compensation awards ⁽¹⁾		58,048			—
Dilutive effect of LTIP units ⁽²⁾		471,346			—
Dilutive effect of shares issuable under forward sales agreements ⁽³⁾		194,128			—
Denominator for diluted EPS		75,616,233			61,225,926
Basic EPS	$	0.02		$	(0.01	)
Diluted EPS	$	0.02		$	(0.01	)

(1)

During the three months ended March 31, 2019, there were approximately 78,449 unvested shares of restricted common stock 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 three months ended March 31, 2020 and 2019, there were approximately 43,424 and 284,471 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.

(3)

During the three months ended March 31, 2020 and 2019, there were approximately 523,397 and 300,000 shares of underlying unsettled forward sales transactions, respectively, that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.