EARNINGS PER SHARE AND PER UNIT
Basic earnings per common share (“EPS”) is calculated by dividing net income attributable to Rayonier Inc. by the weighted average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests (“NCI”) in the Operating Partnership by the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares, restricted stock units, noncontrolling interests in Operating Partnership units and contingently issuable shares and units.
The following table provides details of the calculation of basic earnings per common share of the Company for the three years ended December 31:
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Basic earnings per common share | | | | | |
| Numerator: | | | | | |
| Net income from continuing operations | $74,067 | | | $340,860 | | | $159,314 | |
| Less: Net income from continuing operations attributable to NCI in the Operating Partnership | (850) | | | (4,510) | | | (2,630) | |
| Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates | — | | | (510) | | | 47 | |
| Net income from continuing operations attributable to Rayonier Inc. | $73,217 | | | $335,840 | | | $156,731 | |
| | | | | |
| Net income from discontinued operations | $406,346 | | | $28,123 | | | $19,181 | |
| Less: Net income from discontinued operations attributable to NCI in the Operating Partnership | (5,375) | | | (324) | | | (275) | |
| Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates | 192 | | | (4,492) | | | (2,144) | |
| Net income from discontinued operations attributable to Rayonier Inc. | $401,163 | | | $23,307 | | | $16,762 | |
| | | | | |
| Net income | $480,413 | | | $368,983 | | | $178,495 | |
| Less: Net income attributable to NCI in the Operating Partnership | (6,225) | | | (4,834) | | | (2,905) | |
| Less: Net loss (income) attributable to NCI in consolidated affiliates | 192 | | | (5,002) | | | (2,097) | |
| Net income attributable to Rayonier Inc. | $474,380 | | | $359,147 | | | $173,493 | |
| | | | | |
| Denominator: | | | | | |
| Denominator for basic earnings per common share - weighted average shares | 154,760,442 | | | 148,839,858 | | | 148,046,673 | |
| | | | | |
| Basic earnings per common share attributable to Rayonier Inc.: | | | | | |
| Continuing operations | $0.47 | | | $2.26 | | | $1.06 | |
| Discontinued operations | $2.59 | | | $0.16 | | | $0.11 | |
| Basic earnings per common share | $3.07 | | | $2.41 | | | $1.17 | |
The following table provides details of the calculation of diluted earnings per common share of the Company for the three years ended December 31:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Diluted earnings per common share | | | | | |
| Numerator: | | | | | |
| Net income from continuing operations | $74,067 | | | $340,860 | | | $159,314 | |
| Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates | — | | | (510) | | | 47 | |
| Net income from continuing operations attributable to Rayonier Inc. before net income attributable to NCI in the Operating Partnership | $74,067 | | | $340,350 | | | $159,361 | |
| | | | | |
| Net income from discontinued operations | $406,346 | | | $28,123 | | | $19,181 | |
| Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates | 192 | | | (4,492) | | | (2,144) | |
| Net income from discontinued operations attributable to Rayonier Inc. before net income attributable to NCI in the Operating Partnership | $406,538 | | | $23,631 | | | $17,037 | |
| | | | | |
| Net income | $480,413 | | | $368,983 | | | $178,495 | |
| Less: Net loss (income) attributable to NCI in consolidated affiliates | 192 | | | (5,002) | | | (2,097) | |
| Net income attributable to Rayonier Inc. before net income attributable to NCI in the Operating Partnership | $480,605 | | | $363,981 | | | $176,398 | |
| | | | | |
| Denominator: | | | | | |
| Denominator for basic earnings per common share - weighted average shares | 154,760,442 | | | 148,839,858 | | | 148,046,673 | |
| Add: Dilutive effect of: | | | | | |
| Stock options | — | | | 41 | | | 472 | |
| Performance shares, restricted shares and restricted stock units | 183,081 | | | 362,352 | | | 401,351 | |
| Noncontrolling interests in Operating Partnership units | 1,909,803 | | | 2,066,102 | | | 2,618,699 | |
| Contingently issuable shares and units from special dividends | 1,856,440 | | | 827,150 | | | — | |
| Denominator for diluted earnings per common share - adjusted weighted average shares | 158,709,766 | | | 152,095,503 | | | 151,067,195 | |
| | | | | |
| Diluted earnings per common share attributable to Rayonier Inc.: | | | | | |
| Continuing operations | $0.47 | | | $2.24 | | | $1.05 | |
| Discontinued operations | $2.56 | | | $0.16 | | | $0.11 | |
| Diluted earnings per common share | $3.03 | | | $2.39 | | | $1.17 | |
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Anti-dilutive shares excluded from computations of diluted earnings per common share: | | | | | |
| Stock options, performance shares, restricted shares and restricted stock units | 241,487 | | | 147,514 | | | 164,865 | |
Basic earnings per unit (“EPU”) is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding during the year. Diluted EPU is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding adjusted to include the potentially dilutive effect of outstanding unit equivalents, including stock options, performance shares, restricted shares, restricted stock units and contingently issuable shares and units.
The following table provides details of the calculation of basic earnings per unit of the Operating Partnership for the three years ended December 31:
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Basic earnings per unit | | | | | |
| Numerator: | | | | | |
| Net income from continuing operations | $74,067 | | | $340,860 | | | $159,314 | |
| Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates | — | | | (510) | | | 47 | |
| Net income from continuing operations available to unitholders | $74,067 | | | $340,350 | | | $159,361 | |
| | | | | |
| Net income from discontinued operations | $406,346 | | | $28,123 | | | $19,181 | |
| Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates | 192 | | | (4,492) | | | (2,144) | |
| Net income from discontinued operations available to unitholders | $406,538 | | | $23,631 | | | $17,037 | |
| | | | | |
| Net income | $480,413 | | | $368,983 | | | $178,495 | |
| Less: Net loss (income) attributable to NCI in consolidated affiliates | 192 | | | (5,002) | | | (2,097) | |
| Net income available to unitholders | $480,605 | | | $363,981 | | | $176,398 | |
| | | | | |
| Denominator: | | | | | |
| Denominator for basic earnings per unit - weighted average units | 156,670,245 | | | 150,905,960 | | | 150,665,372 | |
| | | | | |
| Basic earnings per unit attributable to Rayonier, L.P.: | | | | | |
| Continuing operations | $0.47 | | | $2.26 | | | $1.06 | |
| Discontinued operations | $2.59 | | | $0.16 | | | $0.11 | |
| Basic earnings per unit | $3.07 | | | $2.41 | | | $1.17 | |
The following table provides details of the calculation of diluted earnings per unit of the Operating Partnership for the three years ended December 31:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Diluted earnings per unit | | | | | |
| Numerator: | | | | | |
| Net income from continuing operations | $74,067 | | | $340,860 | | | $159,314 | |
| Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates | — | | | (510) | | | 47 | |
| Net income from continuing operations available to unitholders | $74,067 | | | $340,350 | | | $159,361 | |
| | | | | |
| Net income from discontinued operations | $406,346 | | | $28,123 | | | $19,181 | |
| Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates | 192 | | | (4,492) | | | (2,144) | |
| Net income from discontinued operations available to unitholders | $406,538 | | | $23,631 | | | $17,037 | |
| | | | | |
| Net income | $480,413 | | | $368,983 | | | $178,495 | |
| Less: Net loss (income) attributable to NCI in consolidated affiliates | 192 | | | (5,002) | | | (2,097) | |
| | | | | |
| Net income available to unitholders | $480,605 | | | $363,981 | | | $176,398 | |
| | | | | |
| Denominator: | | | | | |
| Denominator for basic earnings per unit - weighted average units | 156,670,245 | | | 150,905,960 | | | 150,665,372 | |
| Add: Dilutive effect of unit equivalents: | | | | | |
| Stock options | — | | | 41 | | | 472 | |
| Performance shares, restricted shares and restricted stock units | 183,081 | | | 362,352 | | | 401,351 | |
| Contingently issuable shares and units from special dividends | 1,856,440 | | | 827,150 | | | — | |
| Denominator for diluted earnings per unit - adjusted weighted average units | 158,709,766 | | | 152,095,503 | | | 151,067,195 | |
| | | | | |
| Diluted earnings per unit attributable to Rayonier, L.P.: | | | | | |
| Continuing operations | $0.47 | | | $2.24 | | | $1.05 | |
| Discontinued operations | $2.56 | | | $0.16 | | | $0.11 | |
| Diluted earnings per unit | $3.03 | | | $2.39 | | | $1.17 | |
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Anti-dilutive unit equivalents excluded from computations of diluted earnings per unit: | | | | | |
| Stock options, performance shares, restricted shares and restricted stock units | 241,487 | | | 147,514 | | | 164,865 | |
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.