INDEPENDENCE REALTY TRUST, INC. Earnings Per Share Disclosure
NOTE 9: Earnings (Loss) Per Share
The following table presents a reconciliation of basic and diluted earnings (loss) per share for the years ended December 31, 2025, 2024 and 2023:
| For the Years Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net income (loss) | $ | 57,707 | $ | 40,033 | $ | (17,807 | ) | |||||
| (Income) loss allocated to noncontrolling interest | (1,149 | ) | (742 | ) | 580 | |||||||
| Net income (loss) allocable to common shares | 56,558 | 39,291 | (17,227 | ) | ||||||||
| Weighted-average shares outstanding—Basic | 233,923,616 | 224,798,958 | 224,414,443 | |||||||||
| Dilutive securities | 826,815 | 785,348 | — | |||||||||
| Weighted-average shares outstanding—Diluted | 234,750,431 | 225,584,306 | 224,414,443 | |||||||||
| Earnings (loss) per share—Basic | $ | 0.24 | $ | 0.17 | $ | (0.08 | ) | |||||
| Earnings (loss) per share—Diluted | $ | 0.24 | $ | 0.17 | $ | (0.08 | ) | |||||
Certain IROP units totaling 5,941,643 for the year ended December 31, 2025, were excluded from the earnings per share computation because their effect would have been anti-dilutive. Certain IROP units and shares of common stock deliverable under the forward sale agreement totaling 14,192,127 for the year ended December 31, 2024, were excluded from the earnings per share computation because their effect would have been anti-dilutive. Certain IROP units, PSUs, RSUs, restricted stock awards and shares of common stock deliverable under the forward sale agreement totaling 6,669,403 for the year ended December 31, 2023, were excluded from the earnings per share computation because their effect would have been anti-dilutive.
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.