Long-Term Incentive Plan Units

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Long-Term Incentive Plan Units

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 and partially 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 29,562 Individual LTIP units to the Company's independent directors and 8,000 Individual LTIP units to certain of its dedicated and partially 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 $0.7 million. Total expense associated with Individual LTIPs for the three month periods ended September 30, 2013 and 2012 is $0.04 million and $0.03 million, respectively. Total expense associated with Individual LTIPs for the nine month periods ended September 30, 2013 and 2012 are $0.13 million and $0.09 million, respectively. Since inception, 11,782 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 approximately $0.2 million was transferred from the share-based LTIP awards to common shares in shareholders' equity.

Detailed below is a roll-forward of the Company's LTIP units outstanding for the three month periods ended September 30, 2013 and 2012:

	Three Month Period Ended September 30, 2013					Three Month Period Ended September 30, 2012
	Manager	Director/ Employee		Total		Manager	Director/ Employee	Total
LTIP Units Outstanding (6/30/2013 and 6/30/2012, respectively)	375,000	22,096		397,096		375,000	15,500	390,500
Granted	—	5,466		5,466		—	5,346	5,346
Exercised	—	(1,782	)	(1,782	)	—	—	—
LTIP Units Outstanding (9/30/2013 and 9/30/2012, respectively)	375,000	25,780		400,780		375,000	20,846	395,846
LTIP Units Vested and Outstanding (9/30/2013 and 9/30/2012, respectively)	375,000	17,814		392,814		375,000	12,500	387,500

Detailed below is a roll-forward of the Company's LTIP units outstanding for the nine month periods ended September 30, 2013 and 2012:

	Nine Month Period Ended September 30, 2013					Nine Month Period Ended September 30, 2012
	Manager	Director/ Employee		Total		Manager	Director/ Employee	Total
LTIP Units Outstanding (12/31/2012 and 12/31/2011, respectively)	375,000	22,096		397,096		375,000	15,500	390,500
Granted	—	5,466		5,466		—	5,346	5,346
Exercised	—	(1,782	)	(1,782	)	—	—	—
LTIP Units Outstanding (9/30/2013 and 9/30/2012, respectively)	375,000	25,780		400,780		375,000	20,846	395,846
LTIP Units Vested and Outstanding (9/30/2013 and 9/30/2012, respectively)	375,000	17,814		392,814		375,000	12,500	387,500