Equity

Shareholders' Equity. During the three months ended March 31, 2017, the Company issued 1,593,603 common shares under its At-The-Market offering program and generated aggregate gross proceeds of $17,362. During the three months ended March 31, 2016, the Company issued 577,823 common shares under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $4,115.

During the three months ended March 31, 2017 and 2016, the Company granted common shares to certain employees and trustees as follows:



	Three Months ended March 31,
	2017	2016
Performance Shares⁽¹⁾
Shares granted:
Index	106,706	404,466
Peer	106,705	404,463

Grant date fair value per share:⁽²⁾
Index	$6.82	$4.53
Peer	$6.34	$4.58

Non-Vested Common Shares:⁽³⁾
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

Non-management Board of Trustee grant:⁽⁴⁾
Shares issued	17,500	17,500
Grant date fair value	$190	$131

(1)

The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2017, the Company issued an additional 326,929 performance shares, which are subject to shareholder approval.


(2)	The fair value of grants was determined at the grant date using a Monte Carlo simulation model.


(3)	The shares vest ratably over a three-year service period.


(4)	Annual grant and shares vested upon grant.

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. During the three months ended March 31, 2016, the Company repurchased 1,184,113 common shares, at an average price of $7.56 per common share. No repurchases occurred in the three months ended March 31, 2017.

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:



	Three Months ended March 31,
	2017			2016
Balance at beginning of period	$	(1,033	)	$	(1,939	)
Other comprehensive income (loss) before reclassifications	688			(5,691		)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	604			1,066
Balance at end of period	$	259		$	(6,564	)

Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments.

As of March 31, 2017, there were approximately 3,350,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference.