Long-Term Incentive Plan Units

9 Months Ended

Sep. 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 24,096 Individual LTIP units to the Company's independent directors, including 5,346 Individual LTIP units granted on September 12, 2012, 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 September 30, 2012 and 2011 are $0.03 million and $0.04 million, respectively. Total expense associated with Individual LTIPs for the nine month periods ended September 30, 2012 and 2011 are $0.09 million and $0.12 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 September 30, 2012 and December 31, 2011, the Company's issued and outstanding common shares would increase to 20,879,542 and 16,838,151 shares, respectively, resulting in shareholders' equity per share of $23.88 and $22.03 at September 30, 2012 and December 31, 2011, respectively.

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

Three Month Periods Ended September 30, 2012 and 2011:

	Three Month Period Ended			Three Month Period Ended
	September 30, 2012			September 30, 2011
		Director/			Director/
	Manager	Employee	Total	Manager	Employee	Total
LTIP Units Outstanding
(6/30/2012 and 6/30/2011, respectively)	375,000	15,500	390,500	375,000	10,000	385,000
Granted	0	5,346	5,346	0	3,750	3,750
Exercised	0	0	0	0	0	0
LTIP Units Outstanding
(9/30/2012 and 9/30/2011, respectively)	375,000	20,846	395,846	375,000	13,750	388,750
LTIP Units Vested and Outstanding
(9/30/2012 and 9/30/2011, respectively)	375,000	12,500	387,500	375,000	3,750	378,750

Nine Month Periods Ended September 30, 2012 and 2011:

	Nine Month Period Ended			Nine Month Period Ended
	September 30, 2012			September 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	5,346	5,346	0	3,750	3,750
Exercised	0	0	0	0	0	0
LTIP Units Outstanding
(9/30/2012 and 9/30/2011, respectively)	375,000	20,846	395,846	375,000	13,750	388,750
LTIP Units Vested and Outstanding
(9/30/2012 and 9/30/2011, respectively)	375,000	12,500	387,500	375,000	3,750	378,750