EARNINGS PER COMMON UNIT

6 Months Ended

Jun. 30, 2017

Basic earnings per common unit are computed by dividing income available to common unitholders by the weighted‑average number of common units outstanding during the period. Diluted earnings per common unit are computed using the more dilutive method of either the two-class method or the treasury stock method.

For the three months ended June 30, 2017 and the three and six months ended June 30, 2016, the treasury stock method was the more dilutive method for the unvested restricted units. For the six months ended June 30, 2017, the two-class method was the more dilutive method for the unvested restricted units. No participating securities had rights to undistributed earnings during any period presented.

The computation of diluted earnings per common unit for the three and six months ended June 30, 2017 and 2016 excludes the following options, restricted units and AOG Units, as their effect would have been anti-dilutive:



	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2017	2016	2017	2016
Options	21,155,026	23,363,784	21,244,858	23,429,835
Restricted units	39,082	64,516	14,463,590	94,363
AOG units	130,249,329	132,350,586	130,325,826	132,366,701

The following table presents the computation of basic and diluted earnings per common unit:



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Net income (loss) attributable to Ares Management, L.P. common unitholders	$	44,453		$	37,574		$	(2,106	)	$	34,484
Earnings distributed to participating securities (restricted units)	(419		)	(180		)	(1,246		)	(408		)
Preferred stock dividends(1)	—			(4		)	—			(8		)
Net income (loss) available to common unitholders	$	44,034		$	37,390		$	(3,352	)	$	34,068
Basic weighted-average common units	81,829,086			80,715,723			81,469,967			80,699,387
Basic earnings per common unit	$	0.54		$	0.46		$	(0.04	)	$	0.42
Net income (loss) attributable to Ares Management, L.P. common unitholders	$	44,453		$	37,574		$	(2,106	)	$	34,484
Earnings distributed to participating securities (restricted units)	—			—			(1,246		)	—
Preferred stock dividends(1)	—			(4		)	—			(8		)
Net income (loss) available to common unitholders	$	44,453		$	37,570		$	(3,352	)	$	34,476
Effect of dilutive units:
Restricted units	2,490,796			1,616,470			—			1,053,081
Diluted weighted-average common units	84,319,882			82,332,193			81,469,967			81,752,468
Diluted earnings per common unit	$	0.53		$	0.46		$	(0.04	)	$	0.42


(1)	Dividends relate to the preferred shares that were issued by Ares Real Estate Holdings LLC and were redeemed on July 1, 2016.