Earnings (Loss) Per Common Share

12 Months Ended

Dec. 31, 2022

15. Earnings (Loss) Per Common Share

Basic earnings (loss) per Common Share is computed by dividing net income (loss) attributable to Common Shareholders by the weighted average Common Shares outstanding (Note 10). 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 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.


	Year Ended December 31,
(dollars in thousands)	2022			2021			2020
Numerator:
Net (loss) income attributable to Acadia	$	(35,445	)	$	23,548		$	(8,976	)
Less: net income attributable to participating securities		(805	)		(624	)		(233	)
(Loss) income from continuing operations net of income attributable to participating securities for basic (loss) earnings per share		(36,250	)		22,924			(9,209	)
Impact of City Point Loan share conversion option (a)		(1,804	)		—			—
(Loss) income from continuing operations net of income attributable to participating securities for diluted (loss) earnings per share	$	(38,054	)	$	22,924		$	(9,209	)

Denominator:
Weighted average shares for basic earnings (loss) per share		94,575,251			87,653,818			86,441,922
Effect of dilutive securities:
Series A Preferred OP Units		—			—			—
Employee unvested restricted shares		—			—			—
City Point Loan common stock conversion option (Note 10) (a)		68,215			—			—
Denominator for diluted earnings per share		94,643,466			87,653,818			86,441,922

Basic (loss) earnings per Common Share from continuing operations attributable to Acadia	$	(0.38	)	$	0.26		$	(0.11	)
Diluted (loss) earnings per Common Share from continuing operations attributable to Acadia	$	(0.40	)	$	0.26		$	(0.11	)

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		126,384			126,593			126,593
Series C Preferred OP Units - Common share equivalent		438,831			439,556			439,556
Restricted shares		68,832			70,827			76,394

The adjustment represents the impact of assumed conversion of dilutive convertible securities issued in connection with the City Point Loan in August 2022 that enabled the holder to convert its interest into the Company's common shares. The instrument was subsequently modified in the third quarter of 2022 to provide for a cash-only settlement option (Note 10).