Employee Benefit Plans

6 Months Ended

Jun. 30, 2013

Employee Benefit Plans

7. Employee Benefit Plans

Armada Hoffler had a deferred compensation plan for certain key employees pursuant to which Armada Hoffler purchased whole life insurance policies. Armada Hoffler discontinued its deferred compensation plan in May 2013. As of December 31, 2012 Armada Hoffler’s deferred compensation liability and cash surrender value of life insurance policies were both $1.2 million.

The Armada Hoffler Properties, Inc. 2013 Equity Incentive Plan provides for stock based awards in the form of options, restricted shares and other awards up to an aggregate of 700,000 shares over the ten year term of the plan.

During the three and six months ended June 30, 2013, the Company granted 168,642 shares of restricted stock to employees and non-employee directors at a grant date fair value of $11.50. The Company recognized $0.8 million of stock based compensation related to vested shares during the three and six months ended June 30, 2013 using the accelerated attribution method. Unvested restricted share awards as of June 30, 2013 were 112,428 shares. As of June 30, 2013, the total compensation cost related to non-vested restricted share awards was $1.1 million, which we expect to recognize over the next 24 months.