Earnings Per Common Share

3 Months Ended

Mar. 31, 2025

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) and the shares to be issued by us upon settlement of any outstanding forward sale agreements for the period such dilutive security is outstanding (Note 10). The shares issuable upon settlement of any outstanding forward sale agreements are reflected in the diluted earnings per share calculations using the treasury stock method for the period outstanding prior to settlement. Under this method, the number of Common Shares used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of Common Shares that would be issued upon full physical settlement of the shares under any outstanding forward sale agreements for the period prior to settlement over the number of Common Shares that could be purchased by us in the market (based on the average market price during the period prior to settlement) using the proceeds receivable upon full physical settlement (based on the adjusted forward sales price immediately prior to settlement). 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 March 31,
(dollars in thousands, except per share data)	2025			2024
Numerator:
Net income attributable to Acadia shareholders	$	1,608		$	3,269
Less: net income attributable to participating securities		(339	)		(288	)
Income from continuing operations net of income attributable to participating securities for basic earnings per share	$	1,269		$	2,981

Denominator:
Weighted average shares for basic earnings per share		121,328,731			102,127,715
Effect of dilutive securities:
Series A Preferred OP Units		—			—
Employee unvested restricted shares		—			—
Assumed settlement of forward sales agreements (Note 10)		—			—
Denominator for diluted earnings per share		121,328,731			102,127,715

Basic earnings per Common Share from continuing operations attributable to Acadia shareholders	$	0.01		$	0.03
Diluted earnings per Common Share from continuing operations attributable to Acadia shareholders	$	0.01		$	0.03

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		66,519			126,384
Series C Preferred OP Units - Common share equivalent		230,967			438,831
Restricted shares		88,266			103,065