Earnings per Share and per Unit

3 Months Ended

Mar. 31, 2023

Note 4 — Earnings per Share and per Unit

Aimco and Aimco Operating Partnership calculate basic earnings per share and basic earnings per unit based on the weighted-average number of shares of Common Stock and OP Units outstanding. We calculate diluted earnings per share and diluted earnings per unit taking into consideration dilutive shares of Common Stock and OP Unit equivalents and dilutive convertible securities outstanding during the period.

Aimco's Common Stock and OP Unit equivalents include options to purchase shares of Common Stock, which, if exercised, would result in our issuance of additional shares of Common Stock and Aimco Operating Partnership’s issuance to us of additional OP Units equal to the number of shares of Common Stock purchased under the options. These equivalents also include unvested market-based restricted stock awards that do not meet the definition of participating securities, which would result in an increase in the number of shares of Common Stock and OP Units outstanding equal to the number of the shares that vest. OP Unit equivalents also include unvested long-term incentive partnership units. We include in the denominator securities with dilutive effect in calculating diluted earnings per share and per unit during these periods.

Aimco's time-based restricted stock awards receive non-forfeitable dividends similar to shares of Common Stock and OP Units prior to vesting, and our market-based long-term incentive partnership units receive non-forfeitable distributions based on specified percentages of the distributions paid to OP Units prior to vesting and conversion. The unvested restricted shares and units related to these awards are participating securities. We include the effect of participating securities in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method. Participating securities are not included in the computation of diluted earnings per share and unit for the three months ended March 31, 2023, because the effect of their inclusion would be antidilutive. However, participating securities were included in the computation of diluted earnings per share and unit for the three months ended March 31, 2022, because the effect of their inclusion was dilutive.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three months ended March 31, 2023 and 2022, are as follows (in thousands, except per share and per unit data):


	Three Months Ended March 31,
	2023			2022
Earnings per share
Numerator:
Net income (loss) attributable to Aimco	$	(8,817	)	$	8,209
Net income (loss) allocated to Aimco participating securities		—			(114	)
Net income (loss) attributable to Aimco common stockholders	$	(8,817	)	$	8,095

Denominator - shares:
Basic weighted-average Common Stock outstanding		145,827			149,790
Diluted share equivalents outstanding		—			558
Diluted weighted-average Common Stock outstanding		145,827			150,348

Earnings (loss) per share - basic	$	(0.06	)	$	0.05
Earnings (loss) per share - diluted	$	(0.06	)	$	0.05

Earnings per unit
Numerator:
Net income (loss) attributable to Aimco Operating Partnership	$	(9,291	)	$	8,644
Net income (loss) allocated to Aimco Operating Partnership participating securities		—			(118	)
Net income (loss) attributable to Aimco Operating Partnership's common unit holders	$	(9,291	)	$	8,526

Denominator - units
Basic weighted-average OP Units outstanding		153,631			157,718
Diluted partnership unit equivalents outstanding		—			767
Diluted weighted-average OP Units outstanding		153,631			158,485

Earnings (loss) per unit - basic	$	(0.06	)	$	0.05
Earnings (loss) per unit - diluted	$	(0.06	)	$	0.05