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Earnings per Share / Unit (Tables)
 6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Computation of Net Income (Loss) per Share on Basic and Diluted Basis
American Homes 4 Rent

The following table reflects the Company’s computation of net income or loss per common share on a basic and diluted basis for the three and six months ended June 30, 2019 and 2018 (in thousands, except share and per share data): 
 
For the Three Months Ended
June 30,
 
For the Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Numerator:
 

 
 

 
 

 
 

Net income
$
40,304

 
$
25,898

 
$
73,395

 
$
47,423

Less:
 
 
 
 
 
 
 
Noncontrolling interest
4,004

 
(3,150
)
 
7,030

 
(2,036
)
Dividends on preferred shares
13,782

 
11,984

 
27,564

 
26,581

Redemption of participating preferred shares
—

 
32,215

 
—

 
32,215

Allocation to participating securities (1)
45

 
—

 
75

 
—

Numerator for income (loss) per common share–basic and diluted
$
22,473

 
$
(15,151
)
 
$
38,726

 
$
(9,337
)
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average common shares outstanding–basic
299,466,526

 
295,462,572

 
298,157,413

 
290,848,633

Effect of dilutive securities:
 
 
 
 
 
 
 
Share-based compensation plan (2)
524,558

 
—

 
519,375

 
—

Weighted-average common shares outstanding–diluted (3)
299,991,084

 
295,462,572

 
298,676,788

 
290,848,633

 
 
 
 
 
 
 
 
Net income (loss) per common share:


 


 


 


Basic
$
0.08

 
$
(0.05
)
 
$
0.13

 
$
(0.03
)
Diluted
$
0.08

 
$
(0.05
)
 
$
0.13

 
$
(0.03
)

(1)
Unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per share using the two-class method.
(2)
Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options.
(3)
The computation of diluted earnings per share for the three months ended June 30, 2019 and 2018 excludes an aggregate of 94,840 and 6,974,868 potentially dilutive securities, respectively, and for the six months ended June 30, 2019 and 2018 excludes an aggregate of 128,520 and 6,971,928 potentially dilutive securities, respectively, which include 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 anti-dilutive to the respective periods. The effect of the potential conversion of OP units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Class A common shares on a one-for-one basis. The income allocable to the OP units is allocated on this same basis and reflected as noncontrolling interest in the accompanying condensed consolidated financial statements. As such, the assumed conversion of the OP units would have no net impact on the determination of diluted earnings per share.

American Homes 4 Rent, L.P.

The following table reflects the Operating Partnership’s computation of net income or loss per common unit on a basic and diluted basis for the three and six months ended June 30, 2019 and 2018 (in thousands, except unit and per unit data): 
 
For the Three Months Ended
June 30,
 
For the Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Numerator:
 

 
 

 
 

 
 

Net income
$
40,304

 
$
25,898

 
$
73,395

 
$
47,423

Less:
 
 
 
 
 
 
 
Noncontrolling interest
—

 
(248
)
 
—

 
(259
)
Preferred distributions
13,782

 
11,984

 
27,564

 
26,581

Redemption of participating preferred units
—

 
32,215

 
—

 
32,215

Allocation to participating securities (1)
45

 
—

 
75

 
—

Numerator for income (loss) per common unit–basic and diluted
$
26,477

 
$
(18,053
)
 
$
45,756

 
$
(11,114
)
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average common units outstanding–basic
352,363,754

 
350,812,725

 
352,183,171

 
346,198,786

Effect of dilutive securities:
 
 
 
 
 
 
 
Share-based compensation plan (2)
524,558

 
—

 
519,375

 
—

Weighted-average common units outstanding–diluted (3)
352,888,312

 
350,812,725

 
352,702,546

 
346,198,786

 
 
 
 
 
 
 
 
Net income (loss) per common unit:


 
 
 


 
 
Basic
$
0.08

 
$
(0.05
)
 
$
0.13

 
$
(0.03
)
Diluted
$
0.08

 
$
(0.05
)
 
$
0.13

 
$
(0.03
)

(1)
Unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per share using the two-class method.
(2)
Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options.
(3)
The computation of diluted earnings per unit for the three months ended June 30, 2019 and 2018 excludes an aggregate of 94,840 and 6,974,868 potentially dilutive securities, respectively, and for the six months ended June 30, 2019 and 2018 excludes an aggregate of 128,520 and 6,971,928 potentially dilutive securities, which include 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 anti-dilutive to the respective periods.