Whitestone REIT Earnings Per Share Disclosure
10. EARNINGS PER SHARE
Basic earnings per share for our common shareholders is calculated by dividing income from continuing operations excluding amounts attributable to unvested restricted shares and the net income attributable to non-controlling interests by our weighted-average common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income attributable to common shareholders excluding amounts attributable to unvested restricted shares and the net income attributable to non-controlling interests by the weighted-average number of common shares including any dilutive unvested restricted shares.
Certain of our performance-based restricted common shares are considered participating securities, which require the use of the two-class method for the computation of basic and diluted earnings per share. During the years ended December 31, 2025, 2024 and 2023, 642,777, 652,786, and 693,803 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive.
| Year Ended | ||||||||||||
| December 31, | ||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2023 | |||||||||
| Numerator: | ||||||||||||
| Net Income | $ | 50,556 | $ | 37,373 | $ | 19,450 | ||||||
| Less: Net income attributable to noncontrolling interests | (630 | ) | (480 | ) | (270 | ) | ||||||
| Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 49,926 | $ | 36,893 | $ | 19,180 | ||||||
| Denominator: | ||||||||||||
| Weighted average number of common shares - basic | 50,959 | 50,214 | 49,501 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Unvested restricted shares | 1,357 | 1,133 | 1,312 | |||||||||
| Weighted average number of common shares - dilutive | 52,316 | 51,347 | 50,813 | |||||||||
| Earnings Per Share: | ||||||||||||
| Basic: | ||||||||||||
| Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.98 | $ | 0.73 | $ | 0.39 | ||||||
| Diluted: | ||||||||||||
| Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.95 | $ | 0.72 | $ | 0.38 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2017 | Mar 6, 2018 | |
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.