1 EXHIBIT 11 AMERICAN RETIREMENT COMMUNITIES, L.P. Computation of Earnings per Common Share Year ended December 31, 1996 (in thousands, except per share amounts) Amount Per Share ------ --------- Pro forma income before extraordinary item $3,659 $0.39 Preferred return on special redeemable preferred limited partnership interests 1,104 0.12 ------ ----- Pro forma net income before extraordinary item available for distribution to partners and shareholders $2,555 $0.27 ------ ----- Shares used in calculation: Number of shares to be issued to existing partners upon reorganization 7,812.5 Equivalent number of shares applicable to reorganization note of $25,000 assuming issue price of $16.00 per share 1,562.5 ------- Share used in calculation 9,375.0 -------