Franklin BSP Realty Trust, Inc.FBRT

Franklin BSP Realty Trust, Inc. Earnings Per Share Disclosure

10-KFiled Feb 25, 20262 min read
Note 14 - Earnings Per Share
The Company uses the two-class method in calculating basic and diluted earnings per share. Net income/(loss) is allocated between our common stock and other participating securities based on their participation rights. Diluted net income per share has been computed using the weighted average number of shares of common stock outstanding and other dilutive securities. The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations and the calculation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands, except share and per share data):
Year Ended December 31,
Basic Numerator202520242023
Net income/(loss)$84,085 $92,403 $144,509 
Net (income)/loss from non-controlling interest(1,814)3,475 706 
Less: Preferred stock dividends26,993 26,993 26,993 
Net income/(loss) attributable to common stock55,278 68,885 118,222 
Less: Participating securities' share in earnings2,066 1,806 1,162 
Net income/(loss) attributable to common shareholders$53,212 $67,079 $117,060 
Diluted Numerator
Basic Earnings (Loss)$53,212 $67,079 $117,060 
Add: Net income/(loss) from non-controlling interest - OP Units1,877 — — 
Diluted net income/(loss) applicable to common stockholders$55,089 $67,079 $117,060 
Denominator
Weighted-average common shares outstanding for basic earnings per share81,965,156 81,846,170 82,307,970 
Weighted-average common shares outstanding for diluted earnings per share(1)(2)
86,192,595 81,846,170 82,307,970 
Basic earnings per share$0.65 $0.82 $1.42 
Diluted earnings per share$0.64 $0.82 $1.42 
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(1) The effect of the weighted average dilutive shares excluded restricted shares and restricted stock units for the years ended December 31, 2025, 2024 and 2023 of 188,571, 253,436, and 191,324, respectively, as the effect was anti-dilutive. Additionally, the effect of the weighted average dilutive shares excluded the common equivalent of convertible preferred shares for the years ended December 31, 2025, 2024 and 2023 of 5,370,498, 5,370,498, and 5,385,254, shares respectively, as the effect was anti-dilutive.
(2) The effect of the weighted average dilutive shares included OP Units for the year ended December 31, 2025 of 4,227,438 as the effect was dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 26, 2024
2022Mar 16, 2023
2021Feb 25, 2022
2020Mar 11, 2021
2019Mar 17, 2020

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.

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