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,
	2026		2025
Basic Earnings
Income attributable to STWD common stockholders	$	51,878	$	112,255
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,574)		(2,265)
Basic earnings	$	49,304	$	109,990

Diluted Earnings
Income attributable to STWD common stockholders	$	51,878	$	112,255
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,574)		(2,265)



Diluted earnings	$	49,304	$	109,990

Number of Shares:
Basic — Average shares outstanding	366,460		335,059

Effect of dilutive securities — Contingently issuable shares	161		252
Effect of dilutive securities — Unvested non-participating shares	326		145
Diluted — Average shares outstanding	366,947		335,456

Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.13	$	0.33
Diluted	$	0.13	$	0.33

As of March 31, 2026 and 2025, participating shares of 15.0 million and 14.4 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, 2026 and 2025 included 9.6 million and 9.7 million potential shares, respectively, of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 17. Our Convertible Notes were not dilutive for the three months ended March 31, 2026 and 2025.