Noncontrolling Interest

9 Months Ended

Sep. 30, 2020

The following table summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2020 and the year ended December 31, 2019.


Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2018	1,616,200	2,453,234	4,069,434	3.5	%
Granted/Issued	364,173	—	364,173	N/A
Forfeited	(16,618)	—	(16,618)	N/A
Conversions from LTIP units to Other Common Units	(266,397)	266,397	—	N/A
Redemptions from Other Common Units to common stock	—	(680,137)	(680,137)	N/A

Balance at December 31, 2019	1,697,358	2,039,494	3,736,852	2.5	%
Granted/Issued	278,806	—	278,806	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(283,741)	283,741	—	N/A
Redemptions from Other Common Units to common stock	—	(730,104)	(730,104)	N/A

Balance at September 30, 2020	1,692,423	1,593,131	3,285,554	2.2	%

The weighted average grant date fair value of outstanding LTIP units was $21.64 per unit at December 31, 2019, $29.47 per unit granted during the nine months ended September 30, 2020, $18.27 per unit converted during the nine months ended September 30, 2020, and $23.49 per unit at September 30, 2020.

LTIP Units

LTIP units granted on January 8, 2020 to non-employee, independent directors, subject to the recipient’s continued service, will vest over one year on January 1, 2021. LTIP units granted on January 8, 2020 to certain senior executive officers and senior employees, subject to the recipient’s continued employment, will vest quarterly over four years, with the first vesting date having been March 31, 2020. Refer to Note 8 for a discussion of the LTIP units granted on January 8, 2020 pursuant to the January 6, 2017 performance units.

The fair value of the LTIP units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and are non-recurring fair value measurements. The following table summarizes the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2020 (excluding those LTIP units granted pursuant to the January 6, 2017 performance units; refer to Note 8 for details).


LTIP Units	Assumptions
Grant date	January 8, 2020
Expected term (years)	10
Expected volatility	18.0		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.61		%
Fair value of LTIP units at issuance (in thousands)	$	4,030
LTIP units at issuance	136,741
Fair value unit price per LTIP unit at issuance	$	29.47

The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2020 and the year ended December 31, 2019.


Unvested LTIP Units						LTIP Units
Balance at December 31, 2018						251,216
Granted						364,173
Vested						(371,423)
Forfeited						(16,618)
Balance at December 31, 2019						227,348
Granted						278,806
Vested						(201,442)
Forfeited						—
Balance at September 30, 2020						304,712

The weighted average grant date fair value of unvested LTIP units was $23.37 per unit at December 31, 2019, $29.47 per unit granted during the nine months ended September 30, 2020, $26.23 per unit vested during the nine months ended September 30, 2020, and $27.06 per unit at September 30, 2020.

The unrecognized compensation expense associated with the Company’s LTIP units at September 30, 2020 was approximately $5.6 million and is expected to be recognized over a weighted average period of approximately 2.4 years.

The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2020 and 2019.


	Three months ended September 30,				Nine months ended September 30,
Vested LTIP units	2020		2019		2020		2019
Vested LTIP units	27,297		29,989		201,442		234,330
Fair value of vested LTIP units (in thousands)	$	832	$	884	$	5,906	$	6,348