EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per Common Share is computed using net income attributable to common shareholders and the weighted average Common Shares outstanding. Diluted earnings per Common Share reflect the conversion of obligations and the assumed exercises of securities including the effects of awards issuable under the Company’s Share Incentive Plans. In accordance with GAAP, all Common Shares used to calculate earnings per Common Share have been adjusted to reflect a special dividend paid on January 30, 2009, which resulted in the issuance of approximately 1.3 million additional Common Shares. The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated:

	Years ended December 31,
(dollars in thousands, except per share amounts)	2011		2010		2009
Numerator:
Income from continuing operations attributable to Common Shareholders	$	20,062	$	28,260	$	26,574
Effect of dilutive securities:
Preferred OP Unit distributions	18		18		19
Numerator for diluted earnings per Common Share	20,080		28,278		26,593
Denominator:
Weighted average shares for basic earnings per share	40,697		40,136		38,005
Effect of dilutive securities:
Employee share options	264		245		212
Convertible Preferred OP Units	25		25		25
Dilutive potential Common Shares	289		270		237
Denominator for diluted earnings per share	40,986		40,406		38,242
Basic earnings per Common Share from continuing operations attributable to Common Shareholders	$	0.50	$	0.70	$	0.70
Diluted earnings per Common Share from continuing operations attributable to Common Shareholders	$	0.49	$	0.70	$	0.70

The weighted average shares used in the computation of dilutive earnings per share include unvested restricted Common Shares (“Restricted Shares”) and restricted OP Units (“LTIP Units”) (Note 15) that are entitled to receive dividend equivalent payments. The effect of the conversion of Common OP Units is not reflected in the above table, 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 interest in subsidiaries 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. The conversion of the convertible notes payable (Note 9) is not reflected in the table above as such conversion, based on the market price of the Common Shares, would be settled with cash.

ACADIA REALTY TRUST AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

20. Earnings Per Common Share (continued)

The effect of the assumed conversion of 188 Series A Preferred OP Units into 25,067 Common Shares would be dilutive for the years ended December 31, 2011, 2010 and 2009 and are accordingly included in the table above.