Earnings per Share / Unit (Tables)

6 Months Ended

Jun. 30, 2020

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 six months ended June 30, 2020 and 2019 (in thousands, except share and per share data):


	For the Three Months Ended						For the Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Numerator:
Net income	$	31,807	$	40,304	$	69,334	$	73,395
Less:
Noncontrolling interest	2,656		4,004		6,157		7,030
Dividends on preferred shares	13,782		13,782		27,564		27,564

Allocation to participating securities ⁽¹⁾	42		45		96		75
Numerator for income per common share–basic and diluted	$	15,327	$	22,473	$	35,517	$	38,726





Denominator:
Weighted-average common shares outstanding–basic	301,011,545		299,466,526		300,912,307		298,157,413
Effect of dilutive securities:

Share-based compensation plan ⁽²⁾	400,698		524,558		446,462		519,375
Weighted-average common shares outstanding–diluted ⁽³⁾	301,412,243		299,991,084		301,358,769		298,676,788

Net income per common share:
Basic	$	0.05	$	0.08	$	0.12	$	0.13
Diluted	$	0.05	$	0.08	$	0.12	$	0.13

(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 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 six months ended June 30, 2020 and 2019 (in thousands, except unit and per unit data):


	For the Three Months Ended						For the Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Numerator:
Net income	$	31,807	$	40,304	$	69,334	$	73,395
Less:

Preferred distributions	13,782		13,782		27,564		27,564

Allocation to participating securities ⁽¹⁾	42		45		96		75
Numerator for income per common unit–basic and diluted	$	17,983	$	26,477	$	41,674	$	45,756





Denominator:
Weighted-average common units outstanding–basic	353,038,525		352,363,754		352,939,287		352,183,171
Effect of dilutive securities:

Share-based compensation plan ⁽²⁾	400,698		524,558		446,462		519,375
Weighted-average common units outstanding–diluted	353,439,223		352,888,312		353,385,749		352,702,546

Net income per common unit:
Basic	$	0.05	$	0.08	$	0.12	$	0.13
Diluted	$	0.05	$	0.08	$	0.12	$	0.13

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