Earnings Per Share

3 Months Ended

Mar. 31, 2026

11. Earnings Per Share

Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares of common stock outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented. Unvested restricted shares of common stock and unvested LTIP units are considered participating securities, which require the use of the two-class method for the computation of basic and diluted earnings per share.

The following table sets forth the computation of our basic and diluted earnings per share of common stock for the three months ended March 31, 2026 and 2025 (amounts in thousands, except per share amounts):


	For the three months ended March 31,
	2026			2025
Numerator
Net income	$	1,414		$	3,283
Less: Non-controlling interest in Operating Partnership		(49	)		(156	)
Net income available to Easterly Government Properties, Inc.		1,365			3,127
Less: Dividends on participating securities		(240	)		(207	)
Net income available to common stockholders	$	1,125		$	2,920
Denominator for basic EPS		46,260,517			43,224,145
Dilutive effect of share-based compensation awards		34,197			12,978
Dilutive effect of LTIP units (1)		158,885			129,373
Dilutive effect of shares issuable under forward sale agreements (2)		—			5,711
Denominator for diluted EPS		46,453,599			43,372,207
Basic EPS	$	0.02		$	0.07
Diluted EPS	$	0.02		$	0.07

(1)

During the three months ended March 31, 2026, there were 1,226,143 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three months ended March 31, 2025, there were 163,805 unvested performance-based LTIP units, respectively, that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period.

(2)

During the three months ended March 31, 2026, there were no underlying unsettled forward sale transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three months ended March 31, 2025, all shares of underlying unsettled forward sale transactions were dilutive and included in the computation of diluted EPS.