Share-Based Compensation Plan

3 Months Ended

Mar. 31, 2019

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

In May 2018, our shareholders approved the 2018 LTIP, a long-term incentive plan under which any employee or non-employee director who provides services to us is eligible to participate in the plan. The 2018 LTIP, which is overseen by the Compensation Committee of our Board of Directors, provides for the grant of various types of equity awards, of which restricted stock unit awards and performance-based compensation awards were granted during the second quarter of 2018. The maximum number of shares authorized for issuance under the 2018 LTIP is 150,000 shares, and the 2018 LTIP is effective until May 8, 2028. After giving effect to awards granted under the 2018 LTIP and assuming the potential achievement of the maximum amounts of the performance factors through March 31, 2019, a total of 132,486 shares were available for issuance. During the three months ended March 31, 2019, we recognized $0.1 million of compensation expense in connection with equity-based awards. We had no compensation expense in connection with equity-based awards during the three months ended March 31, 2018 as we began awarding share-based compensation to eligible employees and directors in June 2018.

At March 31, 2019 and December 31, 2018, we had $11,600 and $10,000, respectively, of accrued dividend amounts for awards granted under the 2018 LTIP.

Restricted Stock Unit Awards

The following table presents restricted stock unit award activity for the periods indicated:


		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share ⁽¹⁾

Restricted stock unit awards at January 1, 2019	13,733	$	43.00
Granted	—	$	—
Vested	(375)	$	43.00
Forfeited	—	$	—
Restricted stock unit awards at March 31, 2019	13,358

_______________

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

Unrecognized compensation cost associated with restricted stock unit awards was approximately $0.3 million at March 31, 2019. Due to the graded vesting provisions of these awards, we expect to recognize the remaining compensation cost for these awards over a weighted-average period of 1.5 years.

Performance Share Unit Awards

The following table presents performance share unit award activity for the periods indicated:


		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share ⁽¹⁾

Performance share unit awards at January 1, 2019	3,966	$	43.00
Granted	—	$	—
Performance factor decrease ⁽²⁾	(185)	$	43.00
Vested	—	$	—
Forfeited	—	$	—
Performance share unit awards at March 31, 2019	3,781

_______________

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The performance factor was lowered to 47.5 percent based upon a comparison of actual results for 2018 to performance goals.

Unrecognized compensation cost associated with performance share unit awards was approximately $0.1 million at March 31, 2019. We expect to recognize the remaining compensation cost for these awards over a weighted-average period of 2.2 years.