Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Share-based Compensation Arrangements by Share-based Payment Award

The following table reflects restricted share award activity for the six months ended June 30, 2015:



	Number of Restricted Shares		Weighted-Average Issue Price
Unvested, December 31, 2014	14,400		$	9.00
Granted	3,000		9.00
Vested	(17,400	)	9.00
Unvested, June 30, 2015	—		$	9.00

Schedule of Share Based Compensation Total Return

The Advisor will be eligible to earn a number of LTIP Units with a value equal to a portion of the OPP Cap upon the first, second and third anniversaries of the Effective Date, which is the Listing Date, June 2, 2015, based on the Company’s achievement of certain levels of total return to its stockholders (“Total Return”), including both share price appreciation and Common Stock dividends, as measured against a peer group of companies, as set forth below, for the three-year performance period commencing on the Effective Date (the “Three-Year Period”); each 12-month period during the Three-Year Period (the “One-Year Periods”); and the initial 24-month period of the Three-Year Period (the “Two-Year Period”), as follows:



			Performance Period	Annual Period	Interim Period
Absolute Component: 4% of any excess Total Return attained above an absolute hurdle measured from the beginning of such period:			21%	7%	14%
Relative Component: 4% of any excess Total Return attained above the Total Return for the performance period of the Peer Group*, subject to a ratable sliding scale factor as follows based on achievement of cumulative Total Return measured from the beginning of such period:
	•	100% will be earned if cumulative Total Return achieved is at least:	18%	6%	12%
	•	50% will be earned if cumulative Total Return achieved is:	—%	—%	—%
	•	0% will be earned if cumulative Total Return achieved is less than:	—%	—%	—%
	•	a percentage from 50% to 100% calculated by linear interpolation will be earned if the cumulative Total Return achieved is between:	0% - 18%	0% - 6%	0% - 12%

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*	The “Peer Group” is comprised of Chambers Street Properties, Gramercy Property Trust Inc., Lexington Realty Trust, Select Income REIT, and W.P. Carey Inc.

Fair Value, Stockholders' Equity Measured on Recurring Basis

The following table presents information about the Company's OPP, which is measured at fair value on a recurring basis as of June 30, 2015, aggregated by the level in the fair value hierarchy within which the instrument falls:



(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3			Total
OPP at June 30, 2015	$	—	$	—	$	(25,600	)	$	(25,600	)

Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2015:



(In thousands)	OPP
Beginning balance as of December 31, 2014	$	—
Fair value at issuance	27,500
Fair value adjustment	(1,900		)
Ending balance as of June 30, 2015	$	25,600

Fair Value Inputs, Instruments Classified in Shareholders' Equity, Quantitative Information

The following table provides quantitative information about significant Level 3 inputs used:



Financial Instrument	Fair Value at June 30, 2015		Principal Valuation Technique	Unobservable Inputs	Input Value
	(In thousands)
OPP	$	25,600	Monte Carlo Simulation	Expected volatility	27.0	%