Earnings Per Common Share of MAA

9 Months Ended

Sep. 30, 2019

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 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, 2019 and 2018, 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,
	2019			2018			2019			2018
Calculation of Earnings per Common Share - basic
Net income	$	81,459		$	54,704		$	211,558		$	167,505
Net income attributable to noncontrolling interests		(2,814	)		(1,913	)		(7,336	)		(5,888	)
Unvested restricted stock (allocation of earnings)		(118	)		(69	)		(302	)		(211	)
Preferred dividends		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for common shareholders, adjusted	$	77,605		$	51,800		$	201,154		$	158,640

Weighted average common shares - basic		113,877			113,671			113,814			113,620
Earnings per common share - basic	$	0.68		$	0.46		$	1.77		$	1.40

Calculation of Earnings per Common Share - diluted
Net income	$	81,459		$	54,704		$	211,558		$	167,505
Net income attributable to noncontrolling interests ⁽¹⁾		(2,814	)		(1,913	)		(7,336	)		(5,888	)
Preferred dividends		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for common shareholders, adjusted	$	77,723		$	51,869		$	201,456		$	158,851

Weighted average common shares - basic		113,877			113,671			113,814			113,620
Effect of dilutive securities		260			239			238			201
Weighted average common shares - diluted		114,137			113,910			114,052			113,821
Earnings per common share - diluted	$	0.68		$	0.46		$	1.77		$	1.40

⁽¹⁾	^{For the three and nine months ended September 30, 2019 and 2018, 4.1 million OP Units and their related income are not included in the diluted earnings per share calculations as they are not dilutive.}