Sila Realty Trust, Inc.SILA

Sila Realty Trust, Inc. Earnings Per Share Disclosure

10-KFiled Feb 25, 20262 min read
Earnings Per Share
The Company calculates basic and diluted earnings per share using the two-class method. Basic earnings per share is computed based on the weighted average shares of the Company’s Common Stock outstanding for the period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities, which include shares of restricted Common Stock and Performance DSUs. The shares of restricted Common Stock contain non-forfeitable dividend distribution rights and are considered participating securities. The Performance DSUs are entitled to dividend equivalents which are paid to the grantee only in the event that the applicable performance criteria are achieved and the Performance DSUs vest.
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method (amounts in thousands, except share data and per share amounts):
Year Ended
December 31,
202520242023
Earnings:
Net income attributable to common stockholders
$33,120 $42,657 $24,042 
Less: Income allocated to participating securities
(173)(244)(118)
Net income used in basic earnings per share
32,947 42,413 23,924 
Add back: Income allocated to participating securities
173 244 118 
Net income used in diluted earnings per share
$33,120 $42,657 $24,042 
Weighted Average Shares:
Basic weighted average number of common shares outstanding(1)
55,005,993 56,228,545 56,799,886 
Dilutive effect of weighted average shares of non-vested restricted common stock(1)
288,496 324,032 280,408 
Dilutive effect of weighted average shares of Performance DSUs(1)
220,495 132,919 181,343 
Diluted weighted average number of common shares outstanding(1)
55,514,984 56,685,496 57,261,637 
Net income per share attributable to common stockholders:
Basic(1)
$0.60 $0.75 0.42 
Diluted(1)
$0.60 $0.75 0.42 
(1)2023 amounts have been retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Mar 3, 2025
2023Mar 6, 2024
2022Mar 16, 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.

Other Available Disclosures

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