NOTE 6 — Earnings (Loss) per Share

We calculate earnings (loss) per share based on the weighted average number of shares of Common Stock, participating securities, common stock equivalents and dilutive convertible securities outstanding during the period. The following table illustrates the calculation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2011 and 2010 (in thousands, except per share data):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Numerator:
Loss from continuing operations	$	(43,440	)	$	(38,266	)	$	(73,851	)	$	(73,958	)
Loss from continuing operations attributable to noncontrolling interests		11,369			10,183			18,425			9,892
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—

Loss from continuing operations attributable to Aimco common stockholders	$	(41,797	)	$	(38,253	)	$	(77,665	)	$	(87,116	)


Income from discontinued operations	$	16,469		$	28,096		$	19,603		$	47,028
Income from discontinued operations attributable to noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)

Income from discontinued operations attributable to Aimco common stockholders	$	8,620		$	20,258		$	12,715		$	28,723


Net loss	$	(26,971	)	$	(10,170	)	$	(54,248	)	$	(26,930	)
Loss (income) attributable to noncontrolling interests		3,520			2,345			11,537			(8,413	)
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—

Net loss attributable to Aimco common stockholders	$	(33,177	)	$	(17,995	)	$	(64,950	)	$	(58,393	)


Denominator:
Denominator for basic earnings per share — weighted average number of shares of Common Stock outstanding		119,156			116,323			118,238			116,179
Effect of dilutive securities:
Dilutive potential common shares		—			—			—			—

Denominator for diluted earnings per share		119,156			116,323			118,238			116,179


Earnings (loss) per common share:
Basic and diluted earnings (loss) per common share:
Loss from continuing operations attributable to Aimco common stockholders	$	(0.35	)	$	(0.33	)	$	(0.66	)	$	(0.75	)
Income from discontinued operations attributable to Aimco common stockholders		0.07			0.18			0.11			0.25

Net loss attributable to Aimco common stockholders	$	(0.28	)	$	(0.15	)	$	(0.55	)	$	(0.50	)

As of June 30, 2011 and 2010, the common share equivalents that could potentially dilute basic earnings per share in future periods totaled 6.9 million and 7.2 million, respectively. These securities, representing stock options, have been excluded from the earnings (loss) per share computations for the three and six months ended June 30, 2011 and 2010, because their effect would have been anti-dilutive. Participating securities, consisting of unvested restricted stock and shares purchased pursuant to officer loans, receive dividends similar to shares of Common Stock and totaled 0.5 million and 0.6 million at June 30, 2011 and 2010, respectively. The effect of participating securities is included in basic and diluted earnings (loss) per share computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings.

Various classes of preferred OP Units of the Aimco Operating Partnership are outstanding. Depending on the terms of each class, these preferred OP Units are convertible into common OP Units or redeemable for cash or, at the Aimco Operating Partnership’s option, Common Stock, and are paid distributions varying from 1.8% to 8.8% per annum per unit, or equal to the dividends paid on Common Stock based on the conversion terms. As of June 30, 2011, a total of 3.1 million preferred OP Units were outstanding with redemption values of $82.5 million and were potentially redeemable for approximately 3.2 million shares of Common Stock (based on the period end market price), or cash at the Aimco Operating Partnership’s option. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. The potential dilutive effect of these securities would have been antidilutive in the periods presented. Additionally, based on the Aimco Operating Partnership’s cash redemption policy, they may also be excluded from future earnings (loss) per share computations in periods during which their effect is dilutive.