CareTrust REIT, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income attributable to CareTrust REIT, Inc. | $ | 320,538 | $ | 125,080 | $ | 53,735 | |||||||||||
| Less: Net income allocated to participating securities | (739) | (445) | (400) | ||||||||||||||
| Numerator for basic and diluted earnings available to common stockholders | $ | 319,799 | $ | 124,635 | $ | 53,335 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted-average basic common shares outstanding | 203,642 | 154,795 | 105,956 | ||||||||||||||
| Dilutive potential common shares - TSR Units | 442 | 372 | 164 | ||||||||||||||
| Dilutive potential common shares - forward equity agreements | 7 | — | 32 | ||||||||||||||
| Weighted-average diluted common shares outstanding | 204,091 | 155,167 | 106,152 | ||||||||||||||
| Earnings per common share attributable to CareTrust REIT, Inc., basic | $ | 1.57 | $ | 0.81 | $ | 0.50 | |||||||||||
| Earnings per common share attributable to CareTrust REIT, Inc., diluted | $ | 1.57 | $ | 0.80 | $ | 0.50 | |||||||||||
| Antidilutive unvested restricted stock awards, total shareholder units, performance awards, and forward equity shares excluded from the computation | 554 | 553 | 475 | ||||||||||||||
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.