Earnings per Share / Unit

6 Months Ended

Jun. 30, 2022

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 and six months ended June 30, 2022 and 2021 (amounts in thousands, except share and per share data):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income	$	74,555	$	51,814	$	144,569	$	100,735
Less:
Noncontrolling interest	8,343		3,218		16,655		8,143
Dividends on preferred shares	4,346		12,615		10,109		26,397
Redemption of perpetual preferred shares	5,276		15,879		5,276		15,879
Allocation to participating securities (1)	198		101		395		194
Numerator for income per common share–basic and diluted	$	56,392	$	20,001	$	112,134	$	50,122





Denominator:
Weighted-average common shares outstanding–basic	348,484,158		319,752,730		347,123,576		318,380,175
Effect of dilutive securities:
Share-based compensation plan and forward sale equity contracts (2)	518,466		1,056,266		628,382		1,027,978
Weighted-average common shares outstanding–diluted (3)	349,002,624		320,808,996		347,751,958		319,408,153

Net income per common share:
Basic	$	0.16	$	0.06	$	0.32	$	0.16
Diluted	$	0.16	$	0.06	$	0.32	$	0.16

(1)Unvested RSUs 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 and the dilutive effect of forward sale equity contracts under the treasury stock method (see Note 10. Shareholders’ Equity / Partners’ Capital).

(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 and six months ended June 30, 2022 and 2021 (amounts in thousands, except unit and per unit data):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income	$	74,555	$	51,814	$	144,569	$	100,735
Less:

Preferred distributions	4,346		12,615		10,109		26,397
Redemption of perpetual preferred units	5,276		15,879		5,276		15,879
Allocation to participating securities (1)	198		101		395		194
Numerator for income per common unit–basic and diluted	$	64,735	$	23,219	$	128,789	$	58,265





Denominator:
Weighted-average common units outstanding–basic	399,861,138		371,129,710		398,500,556		369,900,249
Effect of dilutive securities:
Share-based compensation plan and forward sale equity contracts (2)	518,466		1,056,266		628,382		1,027,978
Weighted-average common units outstanding–diluted	400,379,604		372,185,976		399,128,938		370,928,227

Net income per common unit:
Basic	$	0.16	$	0.06	$	0.32	$	0.16
Diluted	$	0.16	$	0.06	$	0.32	$	0.16