Earnings Per Share

3 Months Ended

Mar. 31, 2021

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, 2021 and 2020 (amounts in thousands, except per share amounts):

	For the three months ended March 31,
	2021			2020
Numerator
Net income	$	7,880		$	1,918
Less: Non-controlling interest in Operating Partnership		(889	)		(221	)
Net income available to Easterly Government Properties, Inc.		6,991			1,697
Less: Dividends on participating securities		(114	)		(57	)
Net income available to common stockholders	$	6,877		$	1,640
Denominator for basic EPS		82,120,353			74,892,711
Dilutive effect of share-based compensation awards		55,822			58,048
Dilutive effect of LTIP units ⁽¹⁾		411,434			471,346
Dilutive effect of shares issuable under forward sales agreements ⁽²⁾		8,988			194,128
Denominator for diluted EPS		82,596,597			75,616,233
Basic EPS	$	0.08		$	0.02
Diluted EPS	$	0.08		$	0.02

(1)

During the three months ended March 31, 2021 and 2020, there were approximately 122,397 and 43,424 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 three months ended March 31, 2021 and 2020, there were approximately 2,549,697 and 523,397 shares, respectively, 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.