Earnings Per Common Share of MAA

9 Months Ended

Sep. 30, 2024

Earnings Per Common Share Of M A A [Abstract]

2. Earnings per Common Share of MAA

Basic earnings per share is computed using the two-class method by dividing net income available to MAA common shareholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis with diluted earnings per share being the more dilutive of the treasury stock or two-class methods. OP Units are included in dilutive earnings per share calculations when the units are dilutive to earnings per share.

For the three and nine months ended September 30, 2024, MAA’s diluted earnings per share was computed using the two-class method, and for the three and nine months ended September 30, 2023, MAA’s diluted earnings per share was computed using the treasury stock method, as presented below (dollars and shares in thousands, except per share amounts):


	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Calculation of Earnings per common share - basic
Net income	$	118,230		$	113,732		$	370,502		$	402,963
Net income attributable to noncontrolling interests		(3,035	)		(3,000	)		(9,605	)		(10,633	)
Unvested restricted shares (allocation of earnings)		(53	)		(44	)		(163	)		(161	)
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders, adjusted	$	114,220		$	109,766		$	357,968		$	389,403

Weighted average common shares - basic		116,820			116,633			116,758			116,479
Earnings per common share - basic	$	0.98		$	0.94		$	3.07		$	3.34

Calculation of Earnings per common share - diluted
Net income	$	118,230		$	113,732		$	370,502		$	402,963
Net income attributable to noncontrolling interests (1)		(3,035	)		(3,000	)		(9,605	)		(10,633	)
Unvested restricted shares (allocation of earnings)		(53	)		—			(163	)		—
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders, adjusted	$	114,220		$	109,810		$	357,968		$	389,564

Weighted average common shares - basic		116,820			116,633			116,758			116,479
Effect of dilutive securities		—			78			—			134
Weighted average common shares - diluted		116,820			116,711			116,758			116,613
Earnings per common share - diluted	$	0.98		$	0.94		$	3.07		$	3.34

(1)

For the three and nine months ended September 30, 2024 and 2023, 3.1 million OP Units and 3.2 million OP Units, respectively, and their related income are not included in the diluted earnings per share calculations as they are not dilutive.