Shareholders' Equity

9 Months Ended

Jun. 30, 2011

Shareholders' Equity

Shareholders' Equity

Note 3 — Shareholders’ Equity

Common Share Dividend Distribution

During the nine months ended June 30, 2011, the Trust did not declare or distribute a dividend.

Restricted Shares

An aggregate of 850,000 shares have been authorized for issuance under the Trust’s equity incentive plans, of which 231,885 shares remain available for future grants at June 30, 2011. The shares issued vest five years from the date of issuance and under specified circumstances, including a change in control, may vest earlier.  Since inception of the plans, 126,410 shares have vested and 491,705 shares have been granted and have not yet vested. For accounting purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheet until they vest, but is included in the earnings per share computation.   The estimated fair value of restricted stock at the date of grant is being amortized ratably into expense over the applicable vesting period. For the three months ended June 30, 2011 and 2010, the Trust recorded $210,000 and $209,000 of compensation expense respectively, and for the nine months ended June 30, 2011 and 2010, recorded $636,000 and $640,000 of compensation expense, respectively, as a result of the amortization of restricted shares.   At June 30, 2011, $2,012,000 has been deferred as unearned compensation and will be charged to expense over the remaining weighted average vesting period of approximately 3.10 years.

Warrant

On June 2, 2011, in connection with entering into a joint venture with an affiliate of Torchlight Investors (“Torchlight”), the Trust issued a warrant to purchase 100,000 shares of beneficial interest of the Trust.  The warrant is exercisable, with specified exceptions, from the later to occur of June 1, 2012 and the funding by Torchlight of at least $40 million of capital contributions to the joint venture.  The warrant expires, subject to earlier termination upon the occurrence of specified events, on June 1, 2018.  The exercise price of the warrant is $9.00 per share and includes anti-dilution adjustments in the event of stock splits, stock dividends and issuances of securities.  The warrant’s fair value of $259,000 as of the issue date was determined by a third party appraiser using a Monte Carlo simulation model and is being recorded as a component of the Trust’s investment in the joint venture.

Per Share Data

Basic earnings (loss) per share attributable to holders of shares of beneficial interest was determined by dividing net income (loss) for the period by the weighted average number of common shares outstanding during each period.

Diluted earnings (loss) per share attributable to holders of shares of beneficial interest reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares or resulted in the issuance of common shares that shared in the earnings (losses) of the Trust.

Basic and diluted shares outstanding for the three months ended June 30, 2011 and 2010 were 14,070,774 and 14,106,816, respectively, and for the nine months ended June 30, 2011 and 2010 were 14,031,861 and 13,800,708, respectively.