Equity

3 Months Ended

Mar. 31, 2020

Shareholders' Equity:

During the three months ended March 31, 2020 and 2019, the Company granted common shares to certain employees as follows:


	Three Months Ended March 31,
	2020		2019
Performance Shares(1)
Shares granted:
Index - 1Q	232,993		276,063
Peer - 1Q	232,987		276,058
Grant date fair value per share:(2)
Index - 1Q	$	6.59	$	5.05
Peer - 1Q	$	5.97	$	4.67

Non-Vested Common Shares:(3)
Shares issued	243,270		277,460
Grant date fair value	$	2,581	$	2,270

(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, 2020, 122,779 of the 452,737 performance shares issued in 2017 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, 2020 and 2019, the Company issued 11,675 and 32,316, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $125 and $264, respectively.

The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares. Under the ATM program, the Company may enter into forward sales agreements with agents. During the three months ended March 31, 2020, the Company issued 1,559,714 common shares under its ATM program and generated net proceeds of $17,266. As of March 31, 2020, common shares with an aggregate value of $278,551 remain available for issuance under the ATM program. The Company did not issue common shares under its ATM offering program during the three months ended March 31, 2019.

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 in 2018. This share repurchase program has no expiration date. During the three months ended March 31, 2020 and 2019, the Company repurchased and retired 1,329,940 and 441,581 common shares, respectively, at an average price of $8.28 and $8.13, respectively, per common share under the share repurchase program. As of March 31, 2020, 8,976,315 common shares remain available for repurchase under this authorization. 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, 2020.

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,
	2020		2019
Balance at beginning of period	$	(1,928)	$	76
Other comprehensive income (loss) before reclassifications	(17,039)		1
Amounts of (income) loss reclassified from accumulated other comprehensive income to interest expense	43		(77)
Balance at end of period	$	(18,924)	$	—

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, 2020, there were approximately 2,750,000 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 Attributable to Shareholders and Transfers from Noncontrolling Interests
	Three Months Ended March 31,
	2020		2019
Net income attributable to Lexington Realty Trust shareholders	$	18,154	$	28,027
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	428		156
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	18,582	$	28,183