Earnings per Share / Unit

12 Months Ended

Dec. 31, 2019

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 years ended December 31, 2019, 2018 and 2017 (in thousands, except share and per share data):



	For the Years Ended December 31,
	2019		2018		2017
Numerator:
Net income	$	156,260	$	112,438	$	76,492
Less:
Noncontrolling interest	15,221		4,165		(4,507		)
Dividends on preferred shares	55,128		52,586		60,718
Redemption of participating preferred shares	—		32,215		42,416
Allocation to participating securities ⁽¹⁾	166		85		—
Numerator for income (loss) per common share–basic and diluted	$	85,745	$	23,387	$	(22,135	)

Denominator:
Weighted-average common shares outstanding–basic	299,415,397		293,640,500		264,254,718
Effect of dilutive securities:
Share-based compensation plan ⁽²⁾	503,569		627,830		—
Weighted-average common shares outstanding–diluted ⁽³⁾	299,918,966		294,268,330		264,254,718

Net income (loss) per common share:
Basic	$	0.29	$	0.08	$	(0.08	)
Diluted	$	0.29	$	0.08	$	(0.08	)


(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 years ended December 31, 2019, 2018 and 2017 excludes an aggregate of 182,481, zero and 17,084,135 potentially dilutive securities, respectively, which include a combination of participating preferred shares, exchangeable senior notes and common shares issuable for unvested restricted stock units, because their effect would have been antidilutive 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 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 years ended December 31, 2019, 2018 and 2017 (in thousands, except unit and per unit data):



	For the Years Ended December 31,
	2019		2018			2017
Numerator:
Net income	$	156,260	$	112,438		$	76,492
Less:
Noncontrolling interest	—		(259		)	141
Preferred distributions	55,128		52,586			60,718
Redemption of participating preferred units	—		32,215			42,416
Allocation to participating securities ⁽¹⁾	166		85			—
Numerator for income (loss) per common unit–basic and diluted	$	100,966	$	27,811		$	(26,783	)

Denominator:
Weighted-average common units outstanding–basic	352,460,401		348,990,561			319,753,206
Effect of dilutive securities:
Share-based compensation plan ⁽²⁾	503,569		627,830			—
Weighted-average common units outstanding–diluted⁽³⁾	352,963,970		349,618,391			319,753,206

Net income (loss) per common unit:
Basic	$	0.29	$	0.08		$	(0.08	)
Diluted	$	0.29	$	0.08		$	(0.08	)


(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 years ended December 31, 2019, 2018 and 2017 excludes an aggregate of 182,481, zero and 17,084,135 potentially dilutive securities, respectively, which include a combination of participating preferred units, exchangeable senior notes and common units issuable for unvested restricted stock units, because their effect would have been antidilutive to the respective periods.