Equity

Shareholders' Equity. During the three months ended March 31, 2019, the Company updated its At-The-Market offering program under which the Company may currently issue up to $100,000 in common shares over the term of the program. The Company did not issue common shares under its At-The-Market offering program during the three months ended March 31, 2019 and 2018, respectively.

During the three months ended March 31, 2019 and 2018, the Company granted common shares to certain employees as follows:



	Three Months Ended March 31,
	2019		2018
Performance Shares⁽¹⁾
Shares granted:
Index - 1Q	276,063		331,025
Peer - 1Q	276,058		331,019

Grant date fair value per share:⁽²⁾
Index - 1Q	$	5.05	$	5.81
Peer - 1Q	$	4.67	$	5.37

Non-Vested Common Shares:⁽³⁾
Shares issued	277,460		237,570
Grant date fair value	$	2,270	$	2,190

(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 are not 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, 2019, 713,044 of the 808,929 performance shares issued in 2016 vested.


(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.

In addition, during the three months ended March 31, 2019 and 2018, the Company issued 32,316 and 35,581, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $264 and $337, respectively.

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and, in 2018, increased this authorization by 10,000,000 common shares. This share repurchase program has no expiration date. During the three months ended March 31, 2019 and 2018, the Company repurchased and retired 441,581 and 795,775 common shares, respectively, at an average price of $8.13 and $7.94, respectively, per common share under the share repurchase program. The Company records a liability for repurchases that have not yet been settled as of period end. There were no unsettled repurchases as of March 31, 2019.

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



	Three Months Ended March 31,
	2019			2018
Balance at beginning of period	$	76		$	1,065
Other comprehensive income before reclassifications	1			494
Amounts of income reclassified from accumulated other comprehensive income to interest expense	(77		)	(248		)
Balance at end of period	$	—		$	1,311

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, 2019, there were approximately 3,140,000 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.

The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests:



	Net Income (Loss) Attributable to Shareholders and Transfers from Noncontrolling Interests
	Three Months ended March 31,
	2019		2018
Net income (loss) attributable to Lexington Realty Trust shareholders	$	28,027	$	(14,315	)
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	156		—
Change from net income (loss) attributable to shareholders and transfers from noncontrolling interests	$	28,183	$	(14,315	)