STAG Industrial, Inc.STAG

STAG Industrial, Inc. Earnings Per Share Disclosure

10-KFiled Feb 11, 20262 min read
Earnings Per Share
Under the two-class method of computing earnings per share, restricted shares of common stock are considered participating securities as these stock-based awards contain non-forfeitable rights to dividends, unless and until a forfeiture occurs, and these awards must be included in the computation of earnings per share pursuant to the two-class method. During the years ended December 31, 2025, 2024 and 2023, there were 113,207, 122,454 and 142,875, respectively, unvested shares of restricted stock on a weighted average basis that were considered participating securities. Participating securities are included in the computation of diluted earnings per share using the treasury stock method if the impact is more dilutive than the two-class method. Other potentially dilutive shares of common stock from the Company’s performance units and forward sales agreements are considered when calculating diluted earnings per share.

The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per common share for the years ended December 31, 2025, 2024 and 2023.

Year ended December 31,
Earnings Per Share (in thousands, except per share data)202520242023
Numerator 
Net income attributable to common stockholders$273,350 $189,038 $192,633 
Denominator 
Weighted average common shares outstanding — basic186,844 182,160 180,221 
Effect of dilutive securities(1)
Share-based compensation330 244 332 
Shares issuable under forward sale agreements— — 2 
Weighted average common shares outstanding — diluted187,174 182,404 180,555 
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic$1.46 $1.04 $1.07 
Net income per share attributable to common stockholders — diluted$1.46 $1.04 $1.07 
(1)During the years ended December 31, 2025, 2024, and 2023, there were 113, 122, and 143 unvested restricted shares of common stock (on a weighted average basis), respectively, that were not included in the computation of diluted earnings per share because the allocation of income under the two-class method was more dilutive.

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

RevenuePP&ELeasesDebtCommitmentsStock CompensationNew Standards