CTO Realty Growth, Inc. Earnings Per Share Disclosure
NOTE 14. COMMON STOCK AND EARNINGS PER SHARE
Basic earnings per common share is computed by dividing net income (loss) attributable to common stockholders during the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods. Effective as of January 1, 2022, diluted earnings per common share also reflects the 2025 Notes on an if-converted basis.
The following is a reconciliation of basic and diluted earnings per common share for each of the periods presented (in thousands, except share and per share data):
Year Ended | |||||||||
December 31, | | December 31, | | December 31, | |||||
Basic and Diluted Earnings: | |||||||||
Net Income (Loss) Attributable to Common Stockholders, Used in Basic EPS | $ | 2,580 | $ | (8,779) | $ | 758 | |||
Add Back: Effect of Dilutive Interest Related to 2025 Notes (1) | — | — | — | ||||||
Net Income (Loss) Attributable to Common Stockholders, Used in Diluted EPS | $ | 2,580 | $ | (8,779) | $ | 758 | |||
Basic and Diluted Shares: | |||||||||
Weighted Average Shares Outstanding, Basic | 32,267,365 | 25,361,379 | 22,529,703 | ||||||
Common Shares Applicable to Unvested Restricted Stock Using the Treasury Stock Method | 25,447 | 39,797 | — | ||||||
Common Shares Applicable to Dilutive Effect of 2025 Notes (2) | — | — | — | ||||||
Weighted Average Shares Outstanding, Diluted | 32,292,812 | 25,401,176 | 22,529,703 | ||||||
Per Share Information: | |||||||||
Net Income (Loss) Attributable to Common Stockholders | |||||||||
Basic and Diluted | $ | 0.08 | $ | (0.35) | $ | 0.03 | |||
| (1) | The 2025 Notes were settled during the year ended December 31, 2025. As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in net income or loss that would result from the assumed conversion of the 2025 Notes to derive FFO effective January 1, 2022 due to the implementation of ASU 2020-06 which requires presentation on an if-converted basis. For the years ended December 31, 2025, 2024 and 2023 a total of $0.6 million, $2.1 million and $2.1 million of interest, respectively, was not included as the impact of the 2025 Notes, if-converted, would be antidilutive to the net income (loss) attributable to common stockholders in each respective period. |
| (2) | During the year ended December 31, 2025, the Company issued 1,089,555 shares of the Company’s common stock in connection with the settlement of the 2025 Notes and such shares were included in the basic and diluted weighted average share count for the period. Due to the implementation of ASU 2020-06, a total of 0.9 million shares, 3.6 million shares, and 3.3 million shares, representing the dilutive impact of the 2025 Notes, were not included in the computation of diluted net income (loss) attributable to common stockholders for the years ended December 31, 2025, 2024 or 2023, respectively, because they were antidilutive to the net income (loss) attributable to common stockholders in each respective period. |
There were 25,447 and 39,797 potentially dilutive shares related to the Company’s restricted stock for the years ended December 31, 2025 and 2024, respectively. There were no potentially dilutive securities for year ended December 31, 2023 related to the Company’s restricted stock.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Mar 1, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.