Earnings Per Share

6 Months Ended

Jun. 30, 2024

14. Earnings / (Loss) Per Share

Earnings / (loss) per share ("EPS") is computed by dividing net earnings / (loss) by the weighted average number of common shares outstanding during the period on a basic and diluted basis. We calculate diluted EPS using the more dilutive of the treasury stock method and the two-class method for stock option and restricted common shares, the treasury stock method for forward equity sales and the if converted method for convertible units.

From time to time, we enter into forward equity sales agreements, which are discussed in Note 10, "Equity and Temporary Equity." We considered the potential dilution resulting from the forward equity sales agreements on the EPS calculations. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are delivered unless there is a physical settlement. Common shares issued upon the physical settlement of the forward equity sales agreements, weighted for the period these common shares are outstanding, are included in the denominator of basic EPS. To determine the dilution resulting from the forward equity sales agreements during the period of time prior to settlement, we calculate the number of weighted-average shares outstanding - diluted in accordance with the treasury stock method.

Our potentially dilutive securities include our potential common shares related to our forward equity offerings, our unvested restricted common shares, and our Operating Partnership outstanding common OP units, Series A-1 preferred OP units, Series A-3 preferred OP units, Series C preferred OP units, Series D preferred OP units, Series E preferred OP units, Series F preferred OP units, Series G preferred OP units, Series H preferred OP units, Series J preferred OP units, Series K preferred OP units, and Series L preferred OP units, which, if converted or exercised, may impact dilution.

Diluted EPS considers the impact of potentially dilutive securities except when the potential common shares have an anti-dilutive effect. Our unvested restricted stock common shares contain rights to receive non-forfeitable distributions and participate equally with common stock with respect to distributions issued or declared, and thus, are participating securities, requiring the two-class method of computing EPS. In calculating the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average number of shares outstanding during the period. The two-class method determines EPS by (1) dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares of common stock outstanding for the period; and (2) dividing the sum of distributed earnings allocated to participating securities and undistributed earnings allocated to participating securities by the weighted average number of shares of participating securities for the period. The remaining potential dilutive common shares do not contain rights to distributions and are included in the computation of diluted EPS.

Computations of basic and diluted EPS were as follows (in millions, except for per share data):


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Numerator			As Restated				As Restated
Net income / (loss) attributable to SUI common shareholders	$	52.1	$	(207.6)	$	24.7	$	(252.5)
Less: allocation to restricted stock awards	0.3		(1.7)		0.1		(1.9)
Basic earnings - net income / (loss) attributable to common shareholders after allocation to restricted stock awards	51.8		(205.9)		24.6		(250.6)
Add: allocation to common and preferred OP units dilutive effect	—		(4.1)		0.4		(5.0)
Add: allocation to restricted stock awards	—		(1.7)		—		(1.9)
Diluted earnings - net income / (loss) attributable to common shareholders after allocation to common and preferred OP units(1)	$	51.8	$	(211.7)	$	25.0	$	(257.5)


Denominator
Weighted average common shares outstanding	123.7		123.4		123.7		123.4


Add: dilutive restricted stock	—		0.2		—		0.4
Add: common and preferred OP units dilutive effect	—		2.5		2.7		2.4
Diluted weighted average common shares and securities(1)	123.7		126.1		126.4		126.2
EPS Available to Common Shareholders After Allocation
Basic earnings / (loss) per share	$	0.42	$	(1.67)	$	0.20	$	(2.03)
Diluted earnings / (loss) per share(1)	$	0.42	$	(1.68)	$	0.20	$	(2.04)

(1) For the three and six months ended June 30, 2024, diluted earnings per share was calculated using the two-class method for restricted common shares as the application of this method resulted in a more diluted earnings per share during those periods. For the three and six months ended June 30, 2023, diluted loss per share was calculated using the treasury stock method for restricted common shares as the application of this method resulted in a more diluted loss per share during those periods.

We have excluded certain convertible securities from the computation of diluted EPS because the inclusion of those securities would have been anti-dilutive for the periods presented. The following table presents the outstanding securities that were excluded from the computations of diluted EPS as of June 30, 2024 and 2023 (in thousands):


	As of
	June 30, 2024		June 30, 2023
Common OP units	2,690	(1)	—
A-1 preferred OP units	192		208
A-3 preferred OP units	40		40
Aspen preferred OP units(2)	N/A		989
Series C preferred OP units	297		306
Series D preferred OP units	489		489
Series E preferred OP units	80		80
Series F preferred OP units	90		90
Series G preferred OP units	206		222
Series H preferred OP units	581		581

Series J preferred OP units	238		238
Series K preferred OP units	1,000		1,000
Series L preferred OP units	20		N/A
Total Securities	5,923		4,243

N/A = Not applicable.

(1) For the three months ended June 30, 2024, Common OP units were excluded from the computation of diluted earnings per share because the inclusion of those securities would have been anti-dilutive for the period. For the six months ended June 30, 2024, Common OP units were included in the computation of diluted earnings per share because they were dilutive for the period.

(2) All of our outstanding Aspen preferred OP units converted during the year ended December 31, 2023.