Long-Term Incentive Plan Units

3 Months Ended

Mar. 31, 2012

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 independent directors and, beginning in 2010, issued awards to certain of its dedicated personnel.

As of August 17, 2010, LTIP units awarded to the Manager were fully vested and 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. 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 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 LTIP units and 2,500 LTIP units, respectively, to certain of its dedicated personnel. Excluding the December 12, 2011 award, these grants have 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 expense associated with the Individual LTIP units awarded to the independent directors for the three month periods ended March 31, 2012 and 2011, was $0.02 million and $0.03 million, respectively. The total expense associated with the Individual LTIP units awarded to the Company's dedicated personnel for the three month periods ended March 31, 2012 and 2011 was approximately $0.01 million and $0.01 million. Unrecognized expense related to unvested Individual LTIP units awarded to independent directors was $0.03 million at March 31, 2012 and $0.05 million at December 31, 2011. Unrecognized compensation expense related to unvested Individual LTIP units awarded to certain of the Company's dedicated personnel was $0.04 million at March 31, 2012 and $0.05 million at December 31, 2011. 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 $0.02 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 March 31, 2012 and December 31, 2011, the Company's issued and outstanding common shares would increase to 16,838,151 shares, resulting in shareholders' equity per share of $23.53 and $22.03 at March 31, 2012 and December 31, 2011, respectively.

Detailed below is a roll-forward of the Company's LTIP units outstanding for the three month periods ended March 31, 2012 and 2011, respectively.

Three Month Periods Ended March 31, 2012 and March 31, 2011:

	Three Month Period Ended						Three Month Period Ended
	March 31, 2012						March 31, 2011
			Director/						Director/
	Manager		Employee		Total		Manager		Employee		Total
LTIP Units Outstanding (12/31/2011 and 12/31/2010, respectively)		375,000		15,500		390,500		375,000		10,000		385,000
Granted		—		—		—		—		—		—
Exercised		—		—		—		—		—		—
LTIP Units Outstanding (3/31/2012 and 3/31/2011, respectively)		375,000		15,500		390,500		375,000		10,000		385,000
LTIP Units Vested and Outstanding (3/31/2012 and 3/31/2011, respectively)		375,000		8,750		383,750		375,000		3,750		378,750