Earnings Per Common Share of MAA

9 Months Ended

Sep. 30, 2020

Earnings Per Common Share Of M A A [Abstract]

2.Earnings per Common Share of MAA

Basic earnings per share is computed 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 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, 2020 and 2019, 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,
	2020			2019			2020			2019
Calculation of Earnings per common share - basic
Net income	$	62,036		$	81,459		$	177,716		$	211,558
Net income attributable to noncontrolling interests		(2,126	)		(2,814	)		(6,096	)		(7,336	)
Unvested restricted stock (allocation of earnings)		(78	)		(118	)		(229	)		(302	)
Preferred dividends		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders, adjusted	$	58,910		$	77,605		$	168,625		$	201,154

Weighted average common shares - basic		114,216			113,877			114,177			113,814
Earnings per common share - basic	$	0.52		$	0.68		$	1.48		$	1.77

Calculation of Earnings per common share - diluted
Net income	$	62,036		$	81,459		$	177,716		$	211,558
Net income attributable to noncontrolling interests ⁽¹⁾		(2,126	)		(2,814	)		(6,096	)		(7,336	)
Preferred dividends		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders, adjusted	$	58,988		$	77,723		$	168,854		$	201,456

Weighted average common shares - basic		114,216			113,877			114,177			113,814
Effect of dilutive securities		252			260			310			238
Weighted average common shares - diluted		114,468			114,137			114,487			114,052
Earnings per common share - diluted	$	0.52		$	0.68		$	1.47		$	1.77

⁽¹⁾	^{For the three and nine months ended September 30, 2020 and 2019, 4.1 million OP Units and their related income are not included in the diluted earnings per share calculations as they are not dilutive.}