Earnings Per Common Share

Basic earnings per Common Share is computed by dividing net income attributable to Common Shareholders by the weighted average Common Shares outstanding. During the periods presented, the Company had unvested LTIP Units which provide for non-forfeitable rights to dividend equivalent payments. Accordingly, these unvested LTIP Units are considered participating securities and are included in the computation of basic earnings per Common Share pursuant to the two-class method.

Diluted earnings per Common Share reflects the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of restricted share units (“Restricted Share Units”) and share option awards issued under the Company’s Share Incentive Plans (Note 13). The effect of such shares is excluded from the calculation of earnings per share when anti-dilutive as indicated in the table below.

The effect of the conversion of Common OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.



	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2017			2016			2017			2016
Numerator:
Net income attributable to Acadia	$	12,060		$	17,918		$	27,691		$	46,843
Less: net income attributable to participating securities	(126		)	(223		)	(372		)	(589		)
Income from continuing operations net of income attributable to participating securities	$	11,934		$	17,695		$	27,319		$	46,254

Denominator:
Weighted average shares for basic earnings per share	83,661,953			72,895,868			83,648,415			71,825,784
Effect of dilutive securities:
Employee unvested restricted shares	—			—			5,365			7,861
Convertible Preferred OP Units	—			—			—			25,067
Denominator for diluted earnings per share	83,661,953			72,895,868			83,653,780			71,858,712

Basic and diluted earnings per Common Share from continuing operations attributable to Acadia	$	0.14		$	0.24		$	0.33		$	0.64

Anti-Dilutive Shares Excluded from Denominator:
Series A Preferred OP Units	188			188			188			—
Series A Preferred OP Units - Common share equivalent	25,067			25,067			25,067			—

Series C Preferred OP Units	140,343			141,593			140,343			141,593
Series C Preferred OP Units - Common share equivalent	487,299			402,252			479,167			402,653

Restricted shares	43,318			50,156			—			—