Share-Based Compensation Plans

12 Months Ended

Dec. 31, 2012

Share-Based Compensation Plans [Abstract]

Share-Based Compensation Plans

Note 14. Share-Based Compensation Plans:

At December 31, 2012, we had options outstanding under share-based compensation plans. The 2005 Equity Incentive Plan was approved by our shareholders on June 11, 2005 and permits the grant of options to our employees, executive officers and Board of Trust Managers and restricted shares to our executive officers and Board of Trust Managers for up to 500,000 Common Shares. We believe that these awards better align the interests of our employees, executive officers and Board of Trust Managers with those of our shareholders.

Option awards are granted with an exercise price equal to the market price of our Common Shares at the date of grant and vest immediately upon grant with five-year contractual terms. A summary of the status of our stock options as of December 31, 2012, 2011 and 2010 and the changes during the years ended on those dates are as follows:

	2012				2011				2010
	Number of		Weighted		Number of		Weighted		Number of		Weighted
	Shares		Average		Shares		Average		Shares		Average
	Underlying		Exercise		Underlying		Exercise		Underlying		Exercise
	Options		Prices		Options		Prices		Options		Prices
Outstanding, January 1		94,750		$9.09		90,750		$10.11		89,650		$11.77
Granted		30,000		$7.80		27,000		$8.75		26,500		$8.35
Exercised		-		-		-		-		(1,500)		$7.65
Expired		(12,250)		$14.01		(23,000)		$12.72		(23,900)		$14.54
Outstanding and exercisable, December 31		112,500		$8.21		94,750		$9.09		90,750		$10.11
Weighted-average fair value per share of stock options granted during the year		$0.40				$1.10				$1.24

Upon notification of intent to exercise stock options, our policy is to first verify that the options are exercisable, then to contact our transfer agent instructing them to issue new shares and then to collect the cash proceeds.

The fair value of each share option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Years Ended December 31,
	2012		2011		2010
Assumption:
Expected Term (years)		3.0		3.0		3.0
Risk-Free Interest Rate		0.39%		0.71%		1.23%
Expected Dividend Yield		8.21%		7.31%		7.66%
Expected Volatility		21.12%		33.58%		40.29%
Forfeiture Rate		1.00%		2.00%		10.00%

The expected term of the options represents the period of time that the options are expected to be outstanding and was determined based on our historical data. The risk-free rate was based on the 3-year U.S. Treasury rate corresponding to the expected term of the options. We used historical information to determine our expected volatility and forfeiture rates. We recorded compensation expense of $12,000, $30,000 and $33,000 during 2012, 2011 and 2010, respectively, related to these option grants.

The following table summarizes information about share options outstanding at December 31, 2012:

	Options Outstanding and Exercisable
Range of Exercise Prices	Number     Outstanding		Weighted Average Remaining Contract Life        (in years)		Weighted Average Exercise       Price
$7.65 to $7.80		44,000		3.25		$7.75
$8.35 to $8.75		68,500		2.62		$8.51
$7.65 to $8.75		112,500		2.87		$8.21

A summary of our restricted shares as of December 31, 2012, 2011 and 2010 and the changes during the years ended on those dates are as follows:

	2012				2011				2010
	Number of Shares		Weighted Average Grant Date Fair Value Per Share		Number of Shares		Weighted Average Grant Date Fair Value Per Share		Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance, January 1		11,031		$8.57		12,066		$8.35		17,416		$8.14
Granted		15,000		$7.45		15,000		$8.73		13,100		$8.35
Vested		(19,365)		$7.98		(16,035)		$8.55		(15,050)		$8.11
Forfeited		-		-		-		-		(3,400)		$8.35
Balance, December 31		6,666		$7.75		11,031		$8.57		12,066		$8.35

The restricted share awards generally vest based on two years of continuous service with one-third of the shares vesting immediately upon issuance of the shares and one-third vesting at the end of each of the next two years. Restricted share awards provide for accelerated vesting if there is a change in control (as defined in the plan). Compensation expense related to the restricted shares is being recognized over the vesting periods. We recorded compensation expense of $126,000, $148,000 and $101,000 during 2012, 2011 and 2010, respectively, related to our restricted share issuances. At December 31, 2012, there was $15,000 of total unrecognized compensation expense related to the restricted shares which will be recognized over the next two years. The estimated fair value of restricted shares vested during 2012 was $145,000.