Earnings per Share / Unit

American Homes 4 Rent

The following table reflects the Company's computation of net income (loss) per share on a basic and diluted basis for the three and nine months ended September 30, 2017 and 2016 (in thousands, except share and per share data):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Numerator:
Net income (loss)	$	19,097		$	(167	)	$	45,959		$	1,108
Less:
Noncontrolling interest	309			7,316			(22		)	10,391
Dividends on preferred shares	17,253			13,669			46,122			26,650
Allocation to participating securities (1)	12			—			—			—
Numerator for basic income (loss) per common share	$	1,523		$	(21,152	)	$	(141	)	$	(35,933	)
Add back:
Dividends on participating preferred shares (2)	5,569			—			—			—
Remeasurement of participating preferred shares (2)	(8,391		)	—			—			—
Numerator for diluted loss per common share	$	(1,299	)	$	(21,152	)	$	(141	)	$	(35,933	)

Denominator:
Weighted-average common shares outstanding–basic	266,767,313			238,401,343			256,768,343			232,036,802
Effect of dilutive securities:
Participating preferred shares (2)	22,385,747			—			—			—
Weighted-average common shares outstanding–diluted	289,153,060			238,401,343			256,768,343			232,036,802

Net income (loss) per common share:
Basic	$	0.01		$	(0.09	)	$	—		$	(0.15	)
Diluted	$	—		$	(0.09	)	$	—		$	(0.15	)


(1)	Participating securities include unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock.


(2)	Reflects the dilutive effect of the assumed conversion of the participating preferred shares into Class A common shares.

The computation of diluted earnings per share for the three months ended September 30, 2017 and 2016, excludes an aggregate of 7,078,066 and 26,342,332 potentially dilutive securities, respectively, and for the nine months ended September 30, 2017 and 2016, excludes an aggregate of 29,474,000 and 26,342,332 potentially dilutive securities, respectively, which include a combination of Series A, B and C participating preferred shares, exchangeable senior notes, common shares issuable upon exercise of stock options and unvested restricted stock units, because their effect would have been antidilutive to the respective periods.

American Homes 4 Rent, L.P.

The following table reflects the Operating Partnership's computation of net income (loss) per unit on a basic and diluted basis for the three and nine months ended September 30, 2017 and 2016 (in thousands, except unit and per unit data):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Numerator:
Net income (loss)	$	19,097		$	(167	)	$	45,959		$	1,108
Less:
Noncontrolling interest	(31		)	(226		)	8			(446		)
Preferred distributions	17,253			13,669			46,122			26,650
Income allocated to Series C and D limited partners	—			10,915			—			16,478
Allocation to participating securities (1)	12			—			—			—
Numerator for basic income (loss) per common unit	$	1,863		$	(24,525	)	$	(171	)	$	(41,574	)
Add back:
Distributions to participating preferred units (2)	5,569			—			—			—
Remeasurement of participating preferred units (2)	(8,391		)	—			—			—
Numerator for diluted loss per common unit	$	(959	)	$	(24,525	)	$	(171	)	$	(41,574	)

Denominator:
Weighted-average common units outstanding–basic	322,303,138			285,208,489			312,315,728			271,994,345
Effect of dilutive securities:
Participating preferred units (2)	22,385,747			—			—			—
Weighted-average common units outstanding–diluted	344,688,885			285,208,489			312,315,728			271,994,345

Net income (loss) per common unit:
Basic	$	0.01		$	(0.09	)	$	—		$	(0.15	)
Diluted	$	—		$	(0.09	)	$	—		$	(0.15	)


(1)	Participating securities include unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock.


(2)	Reflects the dilutive effect of the assumed conversion of the participating preferred units into Class A common units.

The computation of diluted earnings per unit for the three months ended September 30, 2017 and 2016, excludes an aggregate of 7,078,066 and 26,342,332 potentially dilutive securities, respectively, and for the nine months ended September 30, 2017 and 2016, excludes an aggregate of 29,474,000 and 26,342,332 potentially dilutive securities, respectively, which include a combination of Series A, B and C participating preferred units, exchangeable senior notes, common units issuable upon exercise of stock options and unvested restricted stock units, because their effect would have been antidilutive to the respective periods.

There was no income or loss allocated to Series C convertible units during the three months ended September 30, 2017 and 2016, and zero and $0.87 of net income per basic and diluted unit were allocated to Series D convertible units during the three months ended September 30, 2017 and 2016, respectively. Zero and $0.46 of net income per basic and diluted unit were allocated to Series C convertible units during the nine months ended September 30, 2017 and 2016, respectively, and zero and $0.99 of net income per basic and diluted unit were allocated to Series D convertible units during the nine months ended September 30, 2017 and 2016, respectively. There was no income or loss allocated to Series E convertible units during the three and nine months ended September 30, 2017 and 2016.