Earnings Per Common Share

3 Months Ended

Mar. 31, 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 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 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)	2023			2022
Numerator:
Net income attributable to Acadia	$	13,360		$	16,838
Less: earnings attributable to unvested participating securities		(243	)		(204	)
Income from continuing operations net of income attributable to participating securities for basic earnings per share	$	13,117		$	16,634

Denominator:
Weighted average shares for basic earnings per share		95,189,490			93,285,565
Effect of dilutive securities:
Series A Preferred OP Units		—			25,067
Employee unvested restricted shares		—			24,468
Denominator for diluted earnings per share		95,189,490			93,335,100

Basic earnings per Common Share from continuing operations attributable to Acadia	$	0.14		$	0.18
Diluted earnings per Common Share from continuing operations attributable to Acadia	$	0.14		$	0.18

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

Series C Preferred OP Units		126,384			126,593
Series C Preferred OP Units - Common share equivalent		438,831			439,556
Restricted shares		78,060			—