Long-Term Incentive Plan Units

6 Months Ended

Jun. 30, 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.

     Since inception, the Company has awarded 18,750 Individual LTIP units to the Company's independent directors and 5,500 Individual LTIP units to certain of its dedicated personnel. The vesting period for awards issued under the Individual LTIP units has generally been one year from the date of grant. Units held pursuant to the Individual LTIPs are generally exercisable by the holder at any time after vesting. Each unit is convertible into one common share. Costs associated with the Individual LTIPs are measured as of the grant date and expensed ratably over the vesting period. Since inception the total expense associated with the Individual LTIP units awarded is $0.5 million. Total expense associated with Individual LTIPs for the three month periods ended June 30, 2012 and 2011 are $0.03 million and $0.04 million, respectively. Total expense associated with Individual LTIPs for the six month periods ended June 30, 2012 and 2011 are $0.06 million and $0.08 million, respectively. 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 June 30, 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 $23.47 and $22.03 at June 30, 2012 and December 31, 2011, respectively.

     Detailed below is a roll-forward of the Company's LTIP units outstanding for the three and six month periods ended June 30, 2012 and 2011.

Three Month Periods Ended June 30, 2012 and June 30, 2011:

	Three Month Period Ended			Three Month Period Ended
	June 30, 2012			June 30, 2011
		Director/			Director/
	Manager Employee		Total	Manager Employee		Total
LTIP Units Outstanding
(3/31/2012 and 3/31/2011, respectively)	375,000	15,500	390,500	375,000	10,000	385,000
Granted	0	0	0	0	0	0
Exercised	0	0	0	0	0	0
LTIP Units Outstanding
(6/30/2012 and 6/30/2011, respectively)	375,000	15,500	390,500	375,000	10,000	385,000
LTIP Units Vested and Outstanding
(6/30/2012 and 6/30/2011, respectively)	375,000	8,750	383,750	375,000	3,750	378,750

Six Month Periods Ended June 30, 2012 and June 30, 2011:

	Six Month Period Ended			Six Month Period Ended
	June 30, 2012			June 30, 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	0	0	0	0	0	0
Exercised	0	0	0	0	0	0
LTIP Units Outstanding
(6/30/2012 and 6/30/2011, respectively)	375,000	15,500	390,500	375,000	10,000	385,000
LTIP Units Vested and Outstanding
(6/30/2012 and 6/30/2011, respectively)	375,000	8,750	383,750	375,000	3,750	378,750