Earnings (Loss) per Unit

6 Months Ended

Jun. 30, 2011

NOTE 6 — Earnings (Loss) per Unit

We calculate earnings (loss) per unit based on the weighted average number of common OP Units, participating securities, common OP Unit equivalents and dilutive convertible securities outstanding during the period. We consider both common OP Units and High Performance Units, which have identical rights to distributions and undistributed earnings, to be common units for purposes of the earnings per unit data presented below. The following table illustrates the calculation of basic and diluted earnings (loss) per unit for the three and six months ended June 30, 2011 and 2010 (in thousands, except per unit data):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Numerator:
Loss from continuing operations	$	(43,216	)	$	(38,052	)	$	(73,415	)	$	(73,532	)
Loss from continuing operations attributable to noncontrolling interests		9,967			9,099			16,019			6,823
Income attributable to the Partnership’s preferred unitholders		(11,343	)		(11,811	)		(25,470	)		(26,426	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—

Loss from continuing operations attributable to the Partnership’s common unitholders	$	(44,646	)	$	(40,806	)	$	(82,977	)	$	(93,135	)


Income from discontinued operations	$	16,469		$	28,096		$	19,603		$	47,028
Income from discontinued operations attributable to noncontrolling interests		(7,196	)		(6,383	)		(5,943	)		(16,241	)

Income from discontinued operations attributable to the Partnership’s common unitholders	$	9,273		$	21,713		$	13,660		$	30,787


Net loss	$	(26,747	)	$	(9,956	)	$	(53,812	)	$	(26,504	)
Loss (income) attributable to noncontrolling interests		2,771			2,716			10,076			(9,418	)
Income attributable to the Partnership’s preferred unitholders		(11,343	)		(11,811	)		(25,470	)		(26,426	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—

Net loss attributable to the Partnership’s common unitholders	$	(35,373	)	$	(19,093	)	$	(69,317	)	$	(62,348	)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Denominator:
Denominator for basic earnings per unit — weighted average number of common units outstanding
Common OP Units		125,237			122,323			124,335			122,181
High Performance Units		2,340			2,340			2,340			2,340

Total common units		127,577			124,663			126,675			124,521
Effect of dilutive securities:
Dilutive potential common units		—			—			—			—

Denominator for diluted earnings per unit		127,577			124,663			126,675			124,521


Earnings (loss) per common unit — basic and diluted:
Loss from continuing operations attributable to the Partnership’s common unitholders	$	(0.35	)	$	(0.33	)	$	(0.66	)	$	(0.75	)
Income from discontinued operations attributable to the Partnership’s common unitholders		0.07			0.18			0.11			0.25

Net loss attributable to the Partnership’s common unitholders	$	(0.28	)	$	(0.15	)	$	(0.55	)	$	(0.50	)

As of June 30, 2011 and 2010, the common unit equivalents that could potentially dilute basic earnings per unit in future periods totaled 6.9 million and 7.2 million, respectively. These securities represent options to purchase shares of Aimco Class A Common Stock, which, if exercised, would result in our issuance to Aimco of common OP Units corresponding to the number of shares purchased under the options. They have been excluded from the earnings (loss) per unit 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 shares of Aimco Class A Common Stock and shares of Aimco Class A Common Stock purchased pursuant to officer loans, receive dividends similar to shares of Aimco Class A Common Stock and common OP Units 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 unit computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings.

Various classes of redeemable preferred OP Units 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 our option, shares of Aimco Class A Common Stock, and are paid distributions varying from 1.8% to 8.8% per annum per unit, or equal to the dividends paid on Aimco Class A 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 Aimco Class A Common Stock (based on the period end market price), or cash at our option. We have 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 our cash redemption policy, they may also be excluded from future earnings (loss) per unit computations in periods during which their effect is dilutive.