Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2021

14. Earnings (Loss) Per Common Share

Basic earnings per Common Share is computed by dividing net income (loss) attributable to Common Shareholders by the weighted-average Common Shares outstanding (Note 10). During the periods presented, the Company had unvested LTIP Units which provide for non-forfeitable rights to dividend equivalent payments. Accordingly, these unvested LTIP Units are considered participating securities and are included in the computation of basic earnings per Common Share pursuant to the two-class method.

Diluted earnings per Common Share reflects the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of Restricted Share Units issued under the Company’s Share Incentive Plans (Note 13). The effect of such shares is excluded from the calculation of earnings per share when anti-dilutive as indicated in the table below.

The effect of the conversion of Common OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.

	Three Months Ended March 31,
(dollars in thousands)	2021			2020
Numerator:
Net income (loss) attributable to Acadia	$	5,162		$	(8,414	)
Less: net income attributable to participating securities		(156	)		—
Income (loss) from continuing operations net of income attributable to participating securities	$	5,006		$	(8,414	)

Denominator:
Weighted average shares for basic earnings per share		86,323,267			86,971,552
Effect of dilutive securities:
Employee unvested restricted shares		23,093			—
Denominator for diluted earnings per share		86,346,360			86,971,552

Basic and diluted earnings and basic loss per Common Share from continuing operations attributable to Acadia	$	0.06		$	(0.10	)

Anti-Dilutive Shares Excluded from Denominator:
Series A Preferred OP Units		188			188
Series A Preferred OP Units - Common share equivalent		25,067			25,067

Series C Preferred OP Units		126,593			126,593
Series C Preferred OP Units - Common share equivalent		439,556			439,556
Restricted shares		—			49,182