Earnings (Loss) Per Common Share

12 Months Ended

Dec. 31, 2023

15. Earnings (Loss) Per Common Share

Basic earnings (loss) per Common Share is computed by dividing net income (loss) 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 (loss) 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 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)	2023			2022			2021
Numerator:
Net income (loss) attributable to Acadia shareholders	$	19,873		$	(35,445	)	$	23,548
Less: earnings attributable to unvested participating securities		(978	)		(805	)		(624	)
Income (loss) from continuing operations net of income attributable to participating securities for basic earnings per share		18,895			(36,250	)		22,924
Impact of City Point Loan share conversion option (a)		—			(1,804	)		—
Income from continuing operations net of income attributable to participating securities for diluted earnings per share	$	18,895		$	(38,054	)	$	22,924

Denominator:
Weighted average shares for basic earnings (loss) per share		95,283,752			94,575,251			87,653,818
Effect of dilutive securities:
Series A Preferred OP Units		—			—			—
Employee unvested restricted shares		—			—			—
City Point Loan common stock conversion option (Note 10) (a)		—			68,215			—
Weighted average shares for diluted earnings per share		95,283,752			94,643,466			87,653,818

Basic earnings (loss) per Common Share from continuing operations attributable to Acadia	$	0.20		$	(0.38	)	$	0.26
Diluted earnings (loss) per Common Share from continuing operations attributable to Acadia	$	0.20		$	(0.40	)	$	0.26

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		126,384			126,384			126,593
Series C Preferred OP Units - Common share equivalent		438,831			438,831			439,556
Restricted shares		90,006			68,832			70,827

The impact of the 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.