NEXPOINT DIVERSIFIED REAL ESTATE TRUST Earnings Per Share Disclosure
12. Earnings (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of the Company’s common shares outstanding and excludes any unvested restricted share units issued pursuant to the 2023 LTIP.
Diluted earnings (loss) per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted share units and assumed conversion of Series B Preferred Shares. During periods of net loss, the assumed vesting of restricted share units and the assumed conversion of Series B Preferred Shares 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 (loss) per share (in thousands, except per share amounts):
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Year Ended December 31, |
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Year Ended December 31, |
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2025 |
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2024 |
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Numerator for loss per share: |
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Net income (loss) attributable to common shareholders |
|
$ |
(130,192 |
) |
|
$ |
(51,349 |
) |
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|
|
|
|
|
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||
Denominator for earnings (loss) per share: |
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|
|
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Weighted average common shares outstanding |
|
|
46,252 |
|
|
|
40,229 |
|
Denominator for basic loss per share |
|
|
46,252 |
|
|
|
40,229 |
|
Weighted average unvested restricted stock units |
|
|
162 |
|
|
|
1,269 |
|
Weighted average number of common shares from assumed conversion of Series B Preferred Shares |
|
|
397 |
|
|
|
— |
|
Denominator for diluted earnings per share |
(1) |
|
46,252 |
|
|
|
40,229 |
|
|
|
|
|
|
|
|
||
Loss per weighted average common share: |
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|
|
|
|
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||
Basic |
|
$ |
(2.81 |
) |
|
$ |
(1.28 |
) |
Diluted |
|
$ |
(2.81 |
) |
|
$ |
(1.28 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 14, 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.