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 years ended December 31, 2018, 2017 and 2016 (in thousands, except share and per share data):



	For the Years Ended December 31,
	2018		2017			2016
Numerator:
Net income	$	112,438	$	76,492		$	10,446
Less:
Noncontrolling interest	4,165		(4,507		)	3,751
Dividends on preferred shares	52,586		60,718			40,237
Redemption of participating preferred shares	32,215		42,416			—
Allocation to participating securities (1)	85		—			—
Numerator for income (loss) per common share–basic and diluted	$	23,387	$	(22,135	)	$	(33,542	)

Denominator:
Weighted-average common shares outstanding–basic	293,640,500		264,254,718			234,010,168
Effect of dilutive securities:
Share-based compensation plan (2)	627,830		—			—
Weighted-average common shares outstanding–diluted (3)	294,268,330		264,254,718			234,010,168

Net income (loss) per common share:
Basic	$	0.08	$	(0.08	)	$	(0.14	)
Diluted	$	0.08	$	(0.08	)	$	(0.14	)


(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 years ended December 31, 2018, 2017 and 2016, excludes an aggregate of zero, 17,084,135 and 32,914,593 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 years ended December 31, 2018, 2017 and 2016 (in thousands, except unit and per unit data):



	For the Years Ended December 31,
	2018			2017			2016
Numerator:
Net income	$	112,438		$	76,492		$	10,446
Less:
Noncontrolling interest	(259		)	141			(562		)
Dividends on preferred units	52,586			60,718			40,237
Redemption of participating preferred units	32,215			42,416			—
Allocation to participating securities (1)	85			—			—
Income allocated to Series C and D limited partners	—			—			10,730
Numerator for income (loss) per common unit–basic and diluted	$	27,811		$	(26,783	)	$	(39,959	)

Denominator:
Weighted-average common units outstanding–basic	348,990,561			319,753,206			277,912,532
Effect of dilutive securities:
Share-based compensation plan (2)	627,830			—			—
Weighted-average common units outstanding–diluted (3)	349,618,391			319,753,206			277,912,532

Net income (loss) per common unit:
Basic	$	0.08		$	(0.08	)	$	(0.14	)
Diluted	$	0.08		$	(0.08	)	$	(0.14	)


(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 years ended December 31, 2018, 2017 and 2016, excludes an aggregate of zero, 17,084,135 and 32,914,593 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.