Share-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Note 11. Share-Based Compensation

2012 Equity Incentive Plan

        The Company’s employees are compensated through the Operating Partnership, including share-based compensation. When the Company issues Class A common shares under the 2012 Equity Incentive Plan (the “Plan”), the Operating Partnership issues an equivalent number of Class A units to AH4R and non-management members of our board of trustees.

        Restricted stock units (“RSU”) granted to employees during the three months ended March 31, 2020 vest over a three-year service period, and stock options and RSUs granted to employees during the three months ended March 31, 2019 vest over a four-year service period. RSUs granted to non-management trustees vest over a one-year service period. Stock options granted during the three months ended March 31, 2019 expire 10 years from the date of grant.

        The following table summarizes stock option activity under the Plan for the three months ended March 31, 2020 and 2019:

	For the Three Months Ended
	March 31, 2020	March 31, 2019
Options outstanding at beginning of period	1,529,800	2,252,275
Granted	—	20,000
Exercised	(83,600)	(5,000)
Forfeited	(1,600)	(9,850)
Options outstanding at end of period	1,444,600	2,257,425
Options exercisable at end of period	1,296,750	1,867,025

        The following table summarizes RSU activity under the Plan for the three months ended March 31, 2020 and 2019:

	For the Three Months Ended
	March 31, 2020	March 31, 2019
RSUs outstanding at beginning of period	599,109	372,375
Units awarded	422,285	317,950
Units vested	(181,213)	(110,650)
Units forfeited	(19,010)	(5,400)
RSUs outstanding at end of period	821,171	574,275

        The Company’s noncash share-based compensation expense relating to corporate administrative employees is included in general and administrative expense and the noncash share-based compensation relating to centralized and field property management employees is included in property management expenses. The following table summarizes the activity that relates to the Company’s noncash share-based compensation expense for the three months ended March 31, 2020 and 2019 (in thousands):

	For the Three Months Ended
	March 31, 2020		March 31, 2019
General and administrative expense	$	1,369	$	659
Property management expenses	439		293
Total noncash share-based compensation expense	$	1,808	$	952