Equity Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary Of Share Option Activity

A summary of the Company’s share option activity and related information is as follows:

 

	Number of options		Option price per share					Weighted avg. exercise price
Outstanding at December 31, 2019	118,030		$	44.62	—	$	76.63	$	55.63
Exercised	(1,410	)	44.98		—	44.98		44.98
Granted	2,890		69.19		—	69.19		69.19
Outstanding at March 31, 2020	119,510		$	44.62	—	$	76.63	$	56.09

Summary Of Outstanding Options

The following table summarizes outstanding and exercisable options at March 31, 2020:

	Options outstanding						Options exercisable
Exercise price range	Options outstanding	Weighted avg. life remaining	Weighted avg. exercise price		Aggregate intrinsic value (in thousands)		Options outstanding	Weighted avg. life remaining	Weighted avg. exercise price		Aggregate intrinsic value (in thousands)
$ 44.62 - 49.99	30,035	1.9					30,035	1.9
50.00 - 59.99	31,710	4.3					29,793	4.0
60.00 - 69.99	53,609	6.2					50,719	4.9
70.00 - 76.63	4,156	7.8					2,148	7.4
	119,510	4.7	$	56.09	$	—	112,695	3.9	$	55.41	$	—

Summary Of Nonvested Share Activity

A summary of the Company’s nonvested share activity and related information is as follows:

	Number of shares		Weighted avg. grant date fair value		Weighted avg. life remaining
Outstanding at December 31, 2019	509,338		$	67.88
Granted	211,549		69.09
Vested	(226,476	)	67.75
Forfeited	(1,317	)	68.38
Outstanding at March 31, 2020	493,094		$	68.45	1.56

The holders of nonvested shares have voting rights and receive dividends from the date of grant. The fair value of the nonvested shares that vested was $15.9 million and $22.1 million for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, unamortized share-based compensation expense related to nonvested shares was $20.9 million.

Nonvested Performance Shares

A summary of the Company's nonvested performance share activity and related information is as follows:

	Number of Performance Shares
Outstanding at December 31, 2019	—
Granted	61,615
Vested	—
Forfeited	—
Outstanding at March 31, 2020	61,615

The number of common shares issuable upon settlement of the performance shares granted during the three months ended March 31, 2020 will be based upon the Company's achievement level relative to the following performance measures at December 31, 2022: 50% based upon the Company's Total Shareholder Return (TSR) relative to the TSRs of the Company's peer group companies, 25% based upon the Company's TSR relative to the TSRs of companies in the MSCI US REIT Index and 25% based upon the Company's Average Annual Growth in AFFO per share over the three-year performance period. The Company's achievement level relative to the performance measures is assigned a specific payout percentage which is multiplied by a target number of performance shares.

The performance shares based on relative TSR performance have market conditions and are valued using a Monte Carlo simulation model on the grant date, which resulted in a grant date fair value of approximately $3.0 million. The estimated fair value is amortized to expense over the three-year vesting period, which ends on December 31, 2022. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the performance shares with a market condition: risk-free interest rate of 1.4%, volatility factors in the expected market price of the Company's common shares of 18% and an expected life of three years. At March 31, 2020, unamortized share-based compensation expense related to nonvested performance shares was $2.7 million.

The performance shares based on growth in AFFO have a performance condition. The probability of achieving the performance condition is assessed at each reporting period. If it is deemed probable that the performance condition will be met, compensation cost will be recognized based on the closing price per share of the Company's common stock on the date of the grant multiplied by the number of awards expected to be earned. If it is deemed that it is not probable that the performance condition will be met, the Company will discontinue the recognition of compensation cost and any compensation cost previously recorded will be reversed. At March 31, 2020, achievement of the performance condition for the performance shares granted during the three months ended March 31, 2020 was deemed not probable.

The performance shares accrue dividend equivalents which are paid only if common shares are issued upon settlement of the performance shares. During the three months ended March 31, 2020, the Company accrued dividend equivalents expected to be paid on earned awards of $3 thousand.

Summary Of Restricted Share Unit Activity

A summary of the Company’s restricted share unit activity and related information is as follows:

	Number of shares	Weighted avg. grant date fair value		Weighted avg. life remaining
Outstanding at December 31, 2019	26,236	$	77.54
Granted	—	—
Vested	—	—
Outstanding at March 31, 2020	26,236	$	77.54	0.17