Earnings (Loss) per Share/Unit

Aimco

The following table illustrates Aimco’s calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share data):



	2013			2012			2011
Numerator:
Income (loss) from continuing operations	$	34,596		$	(18,756	)	$	(136,237	)
Loss (income) from continuing operations attributable to noncontrolling interests	10,555			(11,034		)	36,455
Income attributable to preferred stockholders	(2,804		)	(49,888		)	(45,852		)
Income attributable to participating securities	(813		)	(422		)	(222		)
Income (loss) from continuing operations attributable to Aimco common stockholders	$	41,534		$	(80,100	)	$	(145,856	)
Income from discontinued operations	$	203,229		$	214,117		$	78,073
Income from discontinued operations attributable to noncontrolling interests	(41,090		)	(51,871		)	(35,378		)
Income from discontinued operations attributable to Aimco common stockholders	$	162,139		$	162,246		$	42,695
Net income (loss)	$	237,825		$	195,361		$	(58,164	)
Net (income) loss attributable to noncontrolling interests	(30,535		)	(62,905		)	1,077
Net income attributable to preferred stockholders	(2,804		)	(49,888		)	(45,852		)
Net income attributable to participating securities	(813		)	(422		)	(222		)
Net income (loss) attributable to Aimco common stockholders	$	203,673		$	82,146		$	(103,161	)
Denominator:
Weighted average common shares outstanding – basic	145,291			134,479			119,312
Dilutive potential common shares	241			—			—
Weighted average common shares outstanding – diluted	145,532			134,479			119,312
Earnings (loss) per common share – basic and diluted:
Income (loss) from continuing operations attributable to Aimco common stockholders	$	0.29		$	(0.60	)	$	(1.22	)
Income from discontinued operations attributable to Aimco common stockholders	1.11			1.21			0.36
Net income (loss) attributable to Aimco common stockholders	$	1.40		$	0.61		$	(0.86	)
Dividends declared per common share	$	0.96		$	0.76		$	0.48

The Aimco Operating Partnership

The following table illustrates the Aimco Operating Partnership’s calculation of basic and diluted earnings (loss) per unit for the years ended December 31, 2013, 2012 and 2011 (in thousands, except per unit data):



	2013			2012			2011
Numerator:
Income (loss) from continuing operations	$	34,596		$	(18,756	)	$	(134,938	)
Loss (income) from continuing operations attributable to noncontrolling interests	19,369			(9,585		)	32,488
Income attributable to the Partnership’s preferred unitholders	(9,227		)	(56,384		)	(52,535		)
Income attributable to participating securities	(813		)	(422		)	(222		)
Income (loss) from continuing operations attributable to the Partnership’s common unitholders	$	43,925		$	(85,147	)	$	(155,207	)
Income from discontinued operations	$	203,229		$	214,117		$	78,073
Income from discontinued operations attributable to noncontrolling interests	(31,842		)	(41,633		)	(32,231		)
Income from discontinued operations attributable to the Partnership’s common unitholders	$	171,387		$	172,484		$	45,842
Net income (loss)	$	237,825		$	195,361		$	(56,865	)
Net (income) loss attributable to noncontrolling interests	(12,473		)	(51,218		)	257
Net income attributable to the Partnership’s preferred unitholders	(9,227		)	(56,384		)	(52,535		)
Net income attributable to participating securities	(813		)	(422		)	(222		)
Net income (loss) attributable to the Partnership’s common unitholders	$	215,312		$	87,337		$	(109,365	)
Denominator:
Weighted average common units outstanding – basic	153,256			142,614			127,681
Dilutive potential common units	241			—			—
Weighted average common units outstanding – diluted	153,497			142,614			127,681
Earnings (loss) per common unit – basic and diluted:
Income (loss) from continuing operations attributable to the Partnership’s common unitholders	$	0.29		$	(0.60	)	$	(1.22	)
Income from discontinued operations attributable to the Partnership’s common unitholders	1.11			1.21			0.36
Net income (loss) attributable to the Partnership’s common unitholders	$	1.40		$	0.61		$	(0.86	)
Distributions declared per unit	$	0.96		$	0.76		$	0.63

Distributions declared per unit during the year ended December 31, 2011, includes a special distribution of $0.15 per unit which is discussed further in Note 10.

Aimco and the Aimco Operating Partnership

As of December 31, 2013, the common share or unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 3.0 million. These securities represent options to purchase shares of Common Stock, which, if exercised, would result in Aimco’s issuance of additional shares and the Aimco Operating Partnership’s issuance to Aimco of additional common partnership units equal to the number of shares purchased under the options. The effect of these securities was dilutive for the year ended December 31, 2013, and accordingly has been included in the denominator for calculating diluted earnings per share and unit for this period. These securities have been excluded from the earnings (loss) per share or unit computations for the years ended December 31, 2012 and 2011, because their effect would have been anti-dilutive. Participating securities, consisting primarily of unvested restricted shares of Common Stock, receive dividends similar to shares of Common Stock and common partnership units and totaled 0.6 million, 0.5 million and 0.5 million at December 31, 2013, 2012 and 2011, respectively. The effect of participating securities is included in basic and diluted earnings (loss) per share and unit computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings.

As discussed in Note 10, the Aimco Operating Partnership has various classes of preferred OP Units, which may be redeemed at the holders’ option. The Aimco Operating Partnership may redeem these units for cash or at its option, shares of Common Stock. As of December 31, 2013, these preferred OP Units were potentially redeemable for approximately 3.1 million shares of Common Stock (based on the period end market price), or cash at the Aimco Operating Partnership’s option. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. Accordingly, we expect these securities to be excluded from earnings (loss) per share or unit computations in future periods.