Long-Term Incentive Plan Units

12 Months Ended

Dec. 31, 2011

Long-Term Incentive Plan Units [Abstract]

Long-Term Incentive Plan Units

6. Long-Term Incentive Plan Units

In connection with its initial offering in 2007, the Company established the Manager Long-Term Incentive Plan (the "Manager LTIP") and the Individual Long-Term Incentive Plan (the "Individual LTIP"). Pursuant to the terms of the Manager LTIP, the Company issued 375,000 long-term incentive plan units to its Manager. Pursuant to the terms of the Individual LTIP, each year since inception the Company has issued annual awards to its directors and beginning in 2010, issued grants to certain of its officers.

As of August 17, 2010, LTIP units awarded to the Manager have been fully vested and fully expensed. LTIP units held pursuant to the Manager LTIP are generally exercisable by the holder at any time after vesting. Each LTIP unit is convertible into one common share. During the years ended December 31, 2010 and 2009, expense recognized related to the Manager LTIP was approximately $1.9 million and $3.5 million, respectively. There is no cash flow effect from the issuance of the Manager LTIP units. Since inception, the aggregate expense associated with the Manager LTIP was $8.6 million.

Individual LTIP units in the amount of 3,750 units were granted to the Company's independent directors on each of August 17, 2007, December 31, 2008, October 1, 2009, October 1, 2010 and September 15, 2011. Excluding the September 15, 2011 award, these grants have been fully vested. The vesting period for awards issued to directors under the Individual LTIP has generally been one year from the date of grant. In addition, on December 12, 2011 and December 15, 2010, the Company issued a total of 3,000 units and 2,500 units, respectively, to certain of its dedicated employees. Excluding the December 12, 2011 award, these grants have been fully vested. The grant awarded on December 12, 2011 will vest on December 31, 2012. Units held pursuant to the Individual LTIP are generally exercisable by the holder at any time after vesting. Each unit is convertible into one common share. Costs associated with the Individual LTIP are measured as of the grant date and expensed ratably over the vesting period. The total expenses associated with the Individual LTIP units awarded to the independent directors for the years ended December 31, 2011, 2010 and 2009, was $0.09 million, $0.09 million and $0.10 million, respectively. The total expense associated with the Individual LTIP units awarded to the Company's dedicated employees for the years ended December 31, 2011 and 2010 was approximately $0.06 million and $2,400, respectively. Unrecognized expense related to unvested Individual LTIP units awarded to independent directors was $0.05 million at December 31, 2011 and $0.07 million at December 31, 2010. Unrecognized compensation expense related to unvested Individual LTIP units awarded to certain of the Company's dedicated employees was $0.05 million at December 31, 2011 and $0.05 million at December 31, 2010. Since inception, 8,750 common shares were issued in connection with the conversion of Individual LTIP units awarded to independent directors at the direction of the three award holders and $0.2 million was transferred from the share-based LTIP awards to common shares in shareholders' equity.

If all of the LTIP units that have previously been issued were to be fully vested and exchanged for common shares as of December 31, 2011, December 31, 2010, and December 31, 2009, the Company's issued and outstanding common shares would increase to 16,838,151, 16,883,342, and 12,354,613 shares, respectively, resulting in shareholders' equity per share of $22.03, $23.91, and $24.27 at December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

Detailed below is a roll-forward of the Company's LTIP units outstanding for the years ended December 31, 2011, 2010, and 2009, respectively.

	Year Ended December 31, 2011								Year Ended December 31, 2010								Year Ended December 31, 2009
	Manager		Director/ Employee			Total			Manager		Director/ Employee			Total			Manager		Director/ Employee			Total
LTIP Units Outstanding
(12/31/2010, 12/31/2009, 12/31/2008, respectively)		375,000		10,000			385,000			375,000		7,500			382,500			375,000		6,250			381,250
Granted		—		6,750			6,750			—		6,250			6,250			—		3,750			3,750
Exercised		—		(1,250	)		(1,250	)		—		(3,750	)		(3,750	)		—		(2,500	)		(2,500	)
LTIP Units Outstanding
12/31/2011, 12/31/2010, 12/31/2009, respectively)		375,000		15,500			390,500			375,000		10,000			385,000			375,000		7,500			382,500
LTIP Units Vested and Outstanding
(12/31/2011, 12/31/2010, 12/31/2009, respectively)		375,000		8,750			383,750			375,000		3,750			378,750			250,000		3,750			253,750