Equity Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of fair value at vesting date for awards vesting during the period

The following table summarizes the fair value at vesting for the restricted shares of common stock vested during the three and six months ended June 30, 2017 and June 30, 2016. 

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Vested restricted shares of common stock	—		14,410		109,209		98,746
Fair value of vested restricted shares of common stock (in thousands)	$	—	$	291	$	2,615	$	1,813

The table below sets forth the assumptions used in valuing such LTIP units granted during the six months ended June 30, 2017.

LTIP Units	Assumptions
Grant date	January 6, 2017
Expected term (years)	10
Expected volatility	23.0		%
Expected dividend yield	6.0		%
Risk-free interest rate	1.61		%
Fair value of LTIP units at issuance (in thousands)	$	2,924
LTIP units at issuance	126,239
Fair value unit price per LTIP unit at issuance	$	23.16

The table below sets forth the assumptions used in valuing the performance units granted during the six months ended June 30, 2017.

Performance Units	Assumptions
Grant date	January 6, 2017
Expected volatility	23.0		%
Expected dividend yield	6.0		%
Risk-free interest rate	1.61		%
Fair value of performance units grant (in thousands)	$	2,882

Summary of Equity Compensation Expense

The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, Performance-based Compensation Plans, and the Company’s board of directors’ compensation for the three and six months ended June 30, 2017 and June 30, 2016.

	Three months ended June 30,				Six months ended June 30,
Non-Cash Compensation Expense (in thousands)	2017		2016		2017		2016
Restricted shares of common stock	$	590	$	534	$	1,182	$	1,092
LTIP units	1,171		1,098		2,341		3,893		(1)
Performance-based Compensation Plans	537		322		1,074		494
Board of directors compensation (2)	90		90		178		170
Total non-cash compensation expense	$	2,388	$	2,044	$	4,775	$	5,649

(1) Inclusive of approximately $1.6 million of non-cash compensation expense during the six months ended June 30, 2016 associated with the severance cost of a former executive officer.

(2) All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2017 and June 30, 2016. The number of shares of common stock granted is calculated based on the trailing 10 days average common stock price ending on the third business day preceding the grant date.