American Homes 4 Rent

The following table reflects the Company's computation of net income or loss per common share on a basic and diluted basis for the three months ended March 31, 2018 and 2017 (in thousands, except share and per share data):



	For the Three Months Ended March 31,
	2018		2017
Numerator:
Net income	$	21,525	$	11,796
Less:
Noncontrolling interest	1,114		(301		)
Dividends on preferred shares	14,597		13,587
Allocation to participating securities (1)	23		—
Numerator for income (loss) per common share—basic and diluted	$	5,791	$	(1,490	)

Denominator:
Weighted-average common shares outstanding—basic	286,183,429		244,391,368
Effect of dilutive securities:
Share-based compensation plan (2)	544,434		—
Weighted-average common shares outstanding—diluted (3)	286,727,863		244,391,368

Net income (loss) per common share:
Basic	$	0.02	$	(0.01	)
Diluted	$	0.02	$	(0.01	)


(1)	Participating securities include unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock.


(2)	Reflects the effect of potentially dilutive securities issuable upon the assumed vesting / exercise of restricted stock units and stock options.

(3)

The computation of diluted earnings per share for the three months ended March 31, 2018 and 2017, excludes an aggregate of 17,221,189 and 27,790,165 potentially dilutive securities, respectively, which include a combination of participating preferred shares, exchangeable senior notes, common shares issuable upon exercise of stock options and unvested restricted stock units, because their effect would have been antidilutive to the respective periods. The effect of the potential conversion of OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Class A common shares on a one-for-one basis. The income allocable to the OP units is allocated on this same basis and reflected as noncontrolling interest in the accompanying consolidated financial statements. As such, the assumed conversion of the OP units would have no net impact on the determination of diluted earnings per share.

American Homes 4 Rent, L.P.

The following table reflects the Operating Partnership's computation of net income or loss per common unit on a basic and diluted basis for the three months ended March 31, 2018 and 2017 (in thousands, except unit and per unit data):



	For the Three Months Ended March 31,
	2018			2017
Numerator:
Net income	$	21,525		$	11,796
Less:
Noncontrolling interest	(11		)	38
Preferred distributions	14,597			13,587
Allocation to participating securities (1)	23			—
Numerator for income (loss) per common unit—basic and diluted	$	6,916		$	(1,829	)

Denominator:
Weighted-average common units outstanding—basic	341,533,582			299,947,328
Effect of dilutive securities:
Share-based compensation plan (2)	544,434			—
Weighted-average common units outstanding—diluted (3)	342,078,016			299,947,328

Net income (loss) per common unit:
Basic	$	0.02		$	(0.01	)
Diluted	$	0.02		$	(0.01	)


(1)	Participating securities include unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock.


(2)	Reflects the effect of potentially dilutive securities issuable upon the assumed vesting / exercise of restricted stock units and stock options.

(3)

The computation of diluted earnings per unit for the three months ended March 31, 2018 and 2017, excludes an aggregate of 17,221,189 and 27,790,165 potentially dilutive securities, respectively, which include a combination of participating preferred units, exchangeable senior notes, common units issuable upon exercise of stock options and unvested restricted stock units, because their effect would have been antidilutive to the respective periods.