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. 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 (“Restricted Share Units”) and share option awards 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.



	Year Ended December 31,
(dollars in thousands)	2017			2016			2015
Numerator:
Net income attributable to Acadia	$	61,470		$	72,776		$	65,708
Less: net income attributable to participating securities	(642		)	(793		)	(927		)
Income from continuing operations net of income attributable to participating securities	$	60,828		$	71,983		$	64,781

Denominator:
Weighted average shares for basic earnings per share	83,682,789			76,231,000			68,851,083
Effect of dilutive securities:
Employee unvested restricted shares	2,682			12,550			18,556
Denominator for diluted earnings per share	83,685,471			76,243,550			68,869,639

Basic and diluted earnings per Common Share from continuing operations attributable to Acadia	$	0.73		$	0.94		$	0.94

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

Series C Preferred OP Units	136,593			141,593			—
Series C Preferred OP Units - Common share equivalent	479,978			410,207			—