Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

14. Earnings Per Common Share

Basic earnings per Common Share is computed by dividing net income 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 Amended and Restated 2020 Plan (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 condensed 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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2023			2022			2023			2022
Numerator:
Net (loss) income attributable to Acadia shareholders	$	(1,426	)	$	(55,891	)	$	21,210		$	(39,427	)
Less: earnings attributable to unvested participating securities		(244	)		(198	)		(734	)		—
(Loss) income from continuing operations net of income attributable to participating securities for basic earnings per share	$	(1,670	)	$	(56,089	)	$	20,476		$	(39,427	)
Impact of City Point Loan share conversion option (a)		—			(1,804	)		—			(1,804	)
Income from continuing operations net of income attributable to participating securities for diluted earnings per share	$	(1,670	)	$	(57,893	)	$	20,476		$	(41,231	)

Denominator:
Weighted average shares for basic earnings per share		95,319,958			94,980,333			95,256,703			94,757,678
Effect of dilutive securities:
Series A Preferred OP Units		—			—			—			—
Employee unvested restricted shares		—			—			—			—
City Point Loan common stock conversion option (Note 10) (a)		—			270,635			—			91,203
Weighted average shares for diluted earnings per share		95,319,958			95,250,968			95,256,703			94,848,881

Basic (loss) earnings per Common Share from continuing operations attributable to Acadia	$	(0.02	)	$	(0.59	)	$	0.21		$	(0.42	)
Diluted (loss) earnings per Common Share from continuing operations attributable to Acadia	$	(0.02	)	$	(0.61	)	$	0.21		$	(0.43	)

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

Series C Preferred OP Units		126,384			126,593			126,384			126,593
Series C Preferred OP Units - Common share equivalent		438,831			439,556			438,831			439,556
Restricted shares		90,006			70,827			90,006			69,832

(a)

The impact of assumed conversion of dilutive convertible securities is related to the assumed conversion of potential common shares of the Company that could be subsequently issued in connection with the City Point Loan (Note 10) for the stub-period until the put rights were modified for a cash-only settlement option in the third quarter of 2022.