Earnings per Share / Unit

3 Months Ended

Mar. 31, 2020

American Homes 4 Rent

The following table reflects the Company’s computation of net income per common share on a basic and diluted basis for the three months ended March 31, 2020 and 2019 (in thousands, except share and per share data):


	For the Three Months Ended
	March 31, 2020		March 31, 2019
Numerator:
Net income	$	37,527	$	33,091
Less:
Noncontrolling interest	3,501		3,026
Dividends on preferred shares	13,782		13,782

Allocation to participating securities ⁽¹⁾	54		31
Numerator for income per common share–basic and diluted	$	20,190	$	16,252





Denominator:
Weighted-average common shares outstanding–basic	300,813,069		296,833,755
Effect of dilutive securities:

Share-based compensation plan ⁽²⁾	491,999		611,186
Weighted-average common shares outstanding–diluted ⁽³⁾	301,305,068		297,444,941

Net income per common share:
Basic	$	0.07	$	0.05
Diluted	$	0.07	$	0.05

(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 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 per common unit on a basic and diluted basis for the three months ended March 31, 2020 and 2019 (in thousands, except unit and per unit data):


	For the Three Months Ended
	March 31, 2020		March 31, 2019
Numerator:
Net income	$	37,527	$	33,091
Less:

Preferred distributions	13,782		13,782

Allocation to participating securities ⁽¹⁾	54		31
Numerator for income per common unit–basic and diluted	$	23,691	$	19,278





Denominator:
Weighted-average common units outstanding–basic	352,840,049		352,000,581
Effect of dilutive securities:

Share-based compensation plan ⁽²⁾	491,999		611,186
Weighted-average common units outstanding–diluted	353,332,048		352,611,767

Net income per common unit:
Basic	$	0.07	$	0.05
Diluted	$	0.07	$	0.05

(2)Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options.