Earnings per Share / Unit

3 Months Ended

Mar. 31, 2023

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, 2023 and 2022 (amounts in thousands, except share and per share data):


	For the Three Months Ended March 31,
	2023		2022
Numerator:
Net income	$	137,699	$	70,014
Less:
Noncontrolling interest	16,748		8,312
Dividends on preferred shares	3,486		5,763

Allocation to participating securities (1)	328		197
Numerator for income per common share–basic and diluted	$	117,137	$	55,742





Denominator:
Weighted-average common shares outstanding–basic	360,353,124		345,742,526
Effect of dilutive securities:
Share-based compensation plan and forward sale equity contracts (2)	321,246		738,297
Weighted-average common shares outstanding–diluted (3)	360,674,370		346,480,823

Net income per common share:
Basic	$	0.33	$	0.16
Diluted	$	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 for the three months ended March 31, 2023 and 2022 and the dilutive effect of forward sale equity contracts under the treasury stock method for the three months ended March 31, 2022 (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 months ended March 31, 2023 and 2022 (amounts in thousands, except unit and per unit data):


	For the Three Months Ended March 31,
	2023		2022
Numerator:
Net income	$	137,699	$	70,014
Less:

Preferred distributions	3,486		5,763

Allocation to participating securities (1)	328		197
Numerator for income per common unit–basic and diluted	$	133,885	$	64,054





Denominator:
Weighted-average common units outstanding–basic	411,730,104		397,119,506
Effect of dilutive securities:
Share-based compensation plan and forward sale equity contracts (2)	321,246		738,297
Weighted-average common units outstanding–diluted	412,051,350		397,857,803

Net income per common unit:
Basic	$	0.33	$	0.16
Diluted	$	0.32	$	0.16