Share Options and Awards

In April 2011, our Long-Term Incentive Plan for the issuance of options and share awards expired, and issued options of 2.9 million remain outstanding as of December 31, 2013.

In May 2010, our shareholders approved the adoption of the Amended and Restated 2010 Long-Term Incentive Plan, under which 3.0 million of our common shares were reserved for issuance, and options and share awards of 1.7 million are available for future grant at December 31, 2013. This plan expires in May 2020.

Compensation expense, net of forfeitures, associated with share options and restricted shares totaled $8.8 million in 2013, $9.7 million in 2012 and $6.4 million in 2011, of which $2.4 million in 2013, $2.0 million in 2012 and $1.5 million in 2011 was capitalized. The significant year over year change in expense from 2011 to 2012 is primarily due to an increased number of employees who became retirement eligible, requiring the related expense to be recognized immediately.

Options

The fair value of share options issued prior to 2012 was estimated on the date of grant using the Black-Scholes option pricing method based on the expected weighted average assumptions in the following table. The fair value and weighted average assumptions were as follows:



	Year Ended December 31, 2011
Fair value per share option	$	5.68
Dividend yield	5.3		%
Expected volatility	39.6		%
Expected life (in years)	6.2
Risk-free interest rate	2.4		%

Following is a summary of the option activity for the three years ended December 31, 2013:



	Shares Under Option		Weighted Average Exercise Price
Outstanding, January 1, 2011	4,614,272		$	27.62
Granted	483,459		24.87
Forfeited or expired	(230,232	)	22.81
Exercised	(259,796	)	18.34
Outstanding, December 31, 2011	4,607,703		28.09
Forfeited or expired	(40,390	)	27.12
Exercised	(481,611	)	20.70
Outstanding, December 31, 2012	4,085,702		28.98
Forfeited or expired	(79,108	)	32.61
Exercised	(462,848	)	26.95
Outstanding, December 31, 2013	3,543,746		$	29.16

The total intrinsic value of options exercised was $3.2 million in 2013, $3.0 million in 2012 and $1.9 million in 2011. As of December 31, 2013 and 2012, there was approximately $1.1 million and $2.2 million, respectively, of total unrecognized compensation cost related to unvested share options, which is expected to be amortized over a weighted average of 1.1 years and 1.6 years, respectively.

The following table summarizes information about share options outstanding and exercisable at December 31, 2013:



Range of Exercise Prices	Outstanding						Exercisable
Range of Exercise Prices	Number	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value (000’s)		Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (000’s)
$11.85 - $17.78	743,869	5.2 years	$	11.85			610,870	$	11.85	5.2 years
$17.79 - $26.69	870,886	6.8 years	$	23.78			475,887	$	23.56	6.7 years
$26.70 - $40.05	1,465,277	2.8 years	$	35.36			1,465,277	$	35.35	2.8 years
$40.06 - $49.62	463,714	2.9 years	$	47.46			463,714	$	47.46	2.9 years
Total	3,543,746	4.3 years	$	29.16	$	—	3,015,748	$	30.59	3.9 years	$	—

Restricted Shares

The fair value of the market-based share awards was estimated on the date of grant using a Monte Carlo valuation model based on the following assumptions:



	Year Ended December 31, 2013
	Minimum		Maximum
Dividend yield	0.0	%	3.9	%
Expected volatility	13.2	%	29.0	%
Expected life (in years)	N/A		3
Risk-free interest rate	0.1	%	0.4	%

A summary of the status of unvested restricted shares for the year ended December 31, 2013 is as follows:



	Unvested Restricted Share Awards		Weighted Average Grant Date Fair Value
Outstanding, January 1, 2013	496,571		$	23.10
Granted:
Service-based awards	105,336		29.67
Market-based awards relative to FTSE NAREIT U.S. Shopping Center Index	44,580		31.83
Market-based awards relative to three-year absolute TSR	44,580		37.49
Trust manager awards	25,623		35.23
Vested	(133,006	)	23.30
Forfeited	(8,517	)	26.53
Outstanding, December 31, 2013	575,167		$	26.54

As of December 31, 2013 and 2012, there was approximately $3.9 million and $4.7 million, respectively, of total unrecognized compensation cost related to unvested restricted shares, which is expected to be amortized over a weighted average of 1.4 years and 1.9 years, respectively.