Earnings per Share / Unit (Tables)

9 Months Ended

Sep. 30, 2019

Computation of Net Income (Loss) per Share on Basic and Diluted Basis

American Homes 4 Rent

The following table reflects the Company’s computation of net income per common share on a basic and diluted basis for the three and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share data):



	For the Three Months Ended				For the Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Numerator:
Net income	$	41,401	$	30,281	$	114,796	$	77,704
Less:
Noncontrolling interest	4,099		2,881		11,129		845
Dividends on preferred shares	13,782		12,223		41,346		38,804
Redemption of participating preferred shares	—		—		—		32,215
Allocation to participating securities ⁽¹⁾	48		20		122		66
Numerator for income per common share–basic and diluted	$	23,472	$	15,157	$	62,199	$	5,774

Denominator:
Weighted-average common shares outstanding–basic	300,580,978		296,214,509		298,974,146		292,656,914
Effect of dilutive securities:
Share-based compensation plan ⁽²⁾	451,877		753,140		505,088		662,331
Weighted-average common shares outstanding–diluted ⁽³⁾	301,032,855		296,967,649		299,479,234		293,319,245

Net income per common share:
Basic	$	0.08	$	0.05	$	0.21	$	0.02
Diluted	$	0.08	$	0.05	$	0.21	$	0.02


(1)	Unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per share using the two-class method.


(2)	Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options.

(3)

The computation of diluted earnings per share for the three months ended September 30, 2019 and 2018 excludes an aggregate of 159,599 and zero potentially dilutive securities, respectively, and for the nine months ended September 30, 2019 and 2018 excludes an aggregate of 155,179 and zero potentially dilutive securities, respectively, which include common shares issuable for unvested restricted stock units, because their effect would have been anti-dilutive 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 condensed 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 per common unit on a basic and diluted basis for the three and nine months ended September 30, 2019 and 2018 (in thousands, except unit and per unit data):



	For the Three Months Ended				For the Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Numerator:
Net income	$	41,401	$	30,281	$	114,796	$	77,704
Less:
Noncontrolling interest	—		—		—		(259		)
Preferred distributions	13,782		12,223		41,346		38,804
Redemption of participating preferred units	—		—		—		32,215
Allocation to participating securities ⁽¹⁾	48		21		122		66
Numerator for income per common unit–basic and diluted	$	27,571	$	18,037	$	73,328	$	6,878

Denominator:
Weighted-average common units outstanding–basic	352,714,480		351,564,662		352,362,220		348,007,067
Effect of dilutive securities:
Share-based compensation plan ⁽²⁾	451,877		753,140		505,088		662,331
Weighted-average common units outstanding–diluted ⁽³⁾	353,166,357		352,317,802		352,867,308		348,669,398

Net income per common unit:
Basic	$	0.08	$	0.05	$	0.21	$	0.02
Diluted	$	0.08	$	0.05	$	0.21	$	0.02


(1)	Unvested restricted stock units that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per share using the two-class method.


(2)	Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options.

(3)

The computation of diluted earnings per unit for the three months ended September 30, 2019 and 2018 excludes an aggregate of 159,599 and zero potentially dilutive securities, respectively, and for the nine months ended September 30, 2019 and 2018 excludes an aggregate of 155,179 and zero potentially dilutive securities, respectively, which include common units issuable for unvested restricted stock units, because their effect would have been anti-dilutive to the respective periods.