Earnings and Dividends per Share and per Unit

12 Months Ended

Dec. 31, 2023

Earnings and Dividends per Share and per Unit

AIR and the AIR Operating Partnership calculate basic earnings per common share and basic earnings per common unit, respectively, based on the weighted-average number of shares of Common Stock and common partnership units outstanding, respectively. We calculate diluted earnings per share and diluted earnings per unit taking into consideration dilutive Common Stock and common partnership unit equivalents and dilutive convertible securities outstanding during the period.

Our Common Stock and common partnership unit equivalents include: (i) options to purchase shares of Common Stock, which, if exercised, would result in AIR’s issuance of additional shares and the AIR Operating Partnership’s issuance to AIR of additional common partnership units equal to the number of shares purchased under the options; (ii) unvested total stockholder return (“TSR”) restricted stock awards that do not meet the definition of participating securities, which would result in an increase in the number of shares of Common Stock and common partnership units outstanding equal to the number of the shares that vest; and (iii) preferred OP Units, which may be redeemed at the holders’ option for cash or shares of Common Stock. Common partnership unit equivalents also include unvested long-term incentive partnership units. We include in the denominator securities with dilutive effect in calculating diluted earnings (loss) per share and per unit during these periods.

Our restricted stock awards that are subject to time-based vesting receive non-forfeitable dividends similar to shares of Common Stock and common partnership units prior to vesting. Our TSR long-term incentive partnership units receive non-forfeitable distributions based on specified percentages of the distributions paid to common partnership units prior to vesting and conversion. The unvested restricted shares and units related to these awards are participating securities. We include the effect of participating securities in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the years ended December 31, 2023, 2022, and 2021 are as follows (in thousands, except per share and per unit data):


	2023		2022		2021
Earnings per share
Numerator:
Basic and dilutive net income attributable to AIR common stockholders	$	634,444	$	903,642	$	447,124
Effect of dilutive instruments	6,280		6,388		—
Dilutive net income attributable to AIR common stockholders	$	640,724	$	910,030	$	447,124

Denominator – shares:
Basic weighted-average common shares outstanding	147,899		154,093		154,135
Dilutive common share equivalents outstanding	2,321		2,494		368
Dilutive weighted-average common shares outstanding	150,220		156,587		154,503

Earnings per share – basic	$	4.29	$	5.86	$	2.90
Earnings per share – diluted	$	4.27	$	5.81	$	2.89

Earnings per unit
Numerator:
Basic and dilutive net income attributable to the AIR Operating Partnership’s common unitholders	$	677,165	$	962,414	$	475,557
Effect of dilutive instruments	6,280		6,388		—
Basic and dilutive net income attributable to the AIR Operating Partnership’s common unitholders	$	683,445	$	968,802	$	475,557

Denominator – units:
Basic weighted-average common units outstanding	157,687		164,141		162,739
Dilutive common unit equivalents outstanding	2,321		2,494		369
Dilutive weighted-average common units outstanding	160,008		166,635		163,108

Earnings per unit – basic	$	4.29	$	5.86	$	2.92
Earnings per unit – diluted	$	4.27	$	5.81	$	2.92

The number of common share equivalent securities excluded from the diluted earnings per share calculation were approximately 3.4 million, —, and 1.5 million for the years ended December 31, 2023, 2022, and 2021 respectively.