Seven Hills Realty Trust Earnings Per Share Disclosure
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Numerators: | ||||||||||||||
| Net income | $ | 15,434 | $ | 17,820 | ||||||||||
Income attributable to unvested share awards | (193) | (184) | ||||||||||||
Net income used in calculating net income per common share - basic and diluted | $ | 15,241 | $ | 17,636 | ||||||||||
| Denominators: | ||||||||||||||
| Weighted average common shares outstanding - basic and diluted | 15,240 | 14,712 | ||||||||||||
| Net income per common share - basic and diluted | $ | 1.00 | $ | 1.20 | ||||||||||
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.