Share-Based Compensation Plan

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

We have in place 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 have been granted. 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 June 30, 2019, a total of 98,213 shares were available for issuance.

Compensation expense recognized in connection with equity-based awards was as follows for the periods presented (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018

Compensation expense	$	74	$	3	$	197	$	3

At June 30, 2019 and December 31, 2018, we had $15,602 and $9,533, 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 ⁽²⁾	14,376	$	34.00
Vested	(5,729)	$	43.00
Forfeited	(325)	$	43.00
Restricted stock unit awards at June 30, 2019	22,055

_______________

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

(2) The aggregate grant date fair value of restricted stock unit awards issued during 2019 was $0.5 million based on a grant date market price of our common shares of $34.00 per share.

Unrecognized compensation cost associated with restricted stock unit awards was approximately $0.7 million at June 30, 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 1.8 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 ⁽²⁾	8,094	$	34.00
Performance factor decrease ⁽³⁾	(185)	$	43.00
Vested	—	$	—
Forfeited	(117)	$	43.00
Performance share unit awards at June 30, 2019	11,758

_______________

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

(2) The aggregate grant date fair value of performance share unit awards issued during 2019 was $0.3 million based on a grant date market price of our common shares of $34.00 per share and assuming a performance factor of 100 percent.

(3) The performance factor for awards granted during 2018 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 $0.4 million at June 30, 2019. We expect to recognize the remaining compensation cost for these awards over a weighted-average period of 2.6 years.