Earnings per Share and per Unit

6 Months Ended

Jun. 30, 2023

Note 4 — Earnings per Share and per Unit

Aimco and Aimco Operating Partnership calculate basic earnings per share and basic earnings per unit based on the weighted-average number of shares of Common Stock and OP Units outstanding. We calculate diluted earnings per share and diluted earnings per unit taking into consideration dilutive shares of Common Stock and OP Unit equivalents and dilutive convertible securities outstanding during the period.

Aimco's Common Stock and OP Unit equivalents include options to purchase shares of Common Stock, which, if exercised, would result in our issuance of additional shares of Common Stock and Aimco Operating Partnership’s issuance to us of additional OP Units equal to the number of shares of Common Stock purchased under the options. These equivalents also include unvested market-based restricted stock awards that do not meet the definition of participating securities, which would result in an increase in the number of shares of Common Stock and OP Units outstanding equal to the number of the shares that vest. OP Unit equivalents also include unvested long-term incentive partnership units. The Common Stock and OP Unit equivalents were included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2022, because the effect of their inclusion was dilutive. However, the Common Stock and OP Unit equivalents were not included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2023, because the effect of their inclusion would be antidilutive. As of June 30, 2023, the Common Stock and OP Unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 3.7 million and 7.9 million, respectively.

Aimco's time-based restricted stock awards receive non-forfeitable dividends similar to shares of Common Stock and OP Units prior to vesting, and our market-based long-term incentive partnership units receive non-forfeitable distributions based on specified percentages of the distributions paid to OP Units prior to vesting and conversion. The unvested restricted shares and units related to these awards are participating securities. We include the effect of participating securities in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method. Participating securities were included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2022, because the effect of their inclusion was dilutive. However, participating securities are not included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2023, because the effect of their inclusion would be antidilutive. As of June 30, 2023, participating securities that could potentially dilute basic earnings per share or unit in future periods totaled 2.5 million.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three and six months ended June 30, 2023 and 2022, are as follows (in thousands, except per share and per unit data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Earnings per share
Numerator:
Net income (loss) attributable to Aimco	$	(3,602	)	$	239,137		$	(12,419	)	$	247,346
Net income allocated to Aimco participating securities		—			(3,284	)		—			(3,410	)
Net income (loss) attributable to Aimco common stockholders	$	(3,602	)	$	235,853		$	(12,419	)	$	243,936

Denominator - shares:
Basic weighted-average common stock outstanding		144,195			149,600			145,007			149,694
Diluted share equivalents outstanding		—			823			—			966
Diluted weighted-average common stock outstanding		144,195			150,423			145,007			150,660

Earnings (loss) per share - basic	$	(0.02	)	$	1.58		$	(0.09	)	$	1.63
Earnings (loss) per share - diluted	$	(0.02	)	$	1.57		$	(0.09	)	$	1.62

Earnings per unit
Numerator:
Net income (loss) attributable to Aimco Operating Partnership	$	(3,780	)	$	251,796		$	(13,071	)	$	260,440
Net income allocated to Aimco Operating Partnership participating securities		—			(3,423	)		—			(3,551	)
Net income (loss) attributable to Aimco Operating Partnership's common unit holders	$	(3,780	)	$	248,373		$	(13,071	)	$	256,889

Denominator - units
Basic weighted-average common partnership units outstanding		151,966			157,525			152,795			157,621
Diluted partnership unit equivalents outstanding		-			922			-			1,045
Diluted weighted-average common partnership units outstanding		151,966			158,447			152,795			158,666

Earnings (loss) per unit - basic	$	(0.02	)	$	1.58		$	(0.09	)	$	1.63
Earnings (loss) per unit - diluted	$	(0.02	)	$	1.57		$	(0.09	)	$	1.62