NexPoint Real Estate Finance, Inc. Earnings Per Share Disclosure
12. Earnings Per Share
Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding and excludes any unvested restricted stock units issued pursuant to the LTIP.
Diluted earnings per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted stock units. Additionally, the Company includes the dilutive effect of the potential redemption of OP Units for common shares in accordance with the third amended and restated limited partnership agreement of the OP (as amended, the "OP LPA"). The Company also includes the assumed conversion of the Series B Preferred Stock and Series C Preferred Stock using the if-converted method. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.
The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts):
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For the Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Net income (loss) attributable to common stockholders |
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$ |
75,676 |
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$ |
17,693 |
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$ |
10,399 |
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Earnings for basic computations |
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Net income attributable to redeemable noncontrolling interests |
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18,046 |
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6,770 |
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4,765 |
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Net income attributable to Series B preferred stockholders |
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25,912 |
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|
8,003 |
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|
80 |
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Net income attributable to Series C preferred stockholders |
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13 |
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— |
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— |
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Net income (loss) for diluted computations |
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$ |
119,647 |
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$ |
32,466 |
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$ |
15,244 |
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Weighted-average common shares outstanding |
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Average number of common shares outstanding - basic |
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17,673 |
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|
17,402 |
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17,199 |
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Average number of common shares from assumed vesting of unvested restricted stock units |
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278 |
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|
908 |
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|
740 |
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Average number of common shares from assumed conversion of OP Units |
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5,034 |
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|
5,038 |
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|
5,038 |
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Average number of common shares from assumed conversion of Series B Preferred Stock |
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18,991 |
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|
5,798 |
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|
24 |
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Average number of common shares from assumed conversion of Series C Preferred Stock |
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35 |
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— |
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— |
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Average number of common shares outstanding - diluted |
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42,011 |
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29,146 |
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23,001 |
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Earnings per weighted average common share: |
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Basic |
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$ |
4.28 |
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$ |
1.02 |
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$ |
0.60 |
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Diluted (1) |
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$ |
2.85 |
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$ |
1.02 |
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$ |
0.60 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 22, 2024 | |
| 2022 | Mar 31, 2023 | |
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.