Share-Based Payments

Time-Based LTIP Units

In February 2018, we granted 357,759 long-term incentive partnership units ("LTIP Units") with time-based vesting requirements ("Time-Based LTIP Units") to management and other employees with a grant-date fair value of $11.2 million or $31.38 per unit. The significant assumptions used to value the Time-Based LTIP Units included expected volatility (20.0%), risk-free interest rate (2.1%) and post-grant restriction periods (2 years). The Time-Based LTIP units vest in four equal installments in January of each year, subject to continued employment. Compensation expense is being recognized over a four-year period.

Performance-Based LTIP Units

In February 2018, we granted 553,489 LTIP Units with performance-based vesting requirements ("Performance-Based LTIP Units") to management and other employees with a grant-date fair value of $9.4 million or $17.04 per unit valued using Monte Carlo simulations. The significant assumptions used to value the Performance-Based LTIP Units included expected volatility (19.9%), dividend yield (2.7%) and risk-free interest rates (2.3%). Fifty percent of any Performance-Based LTIP Units that are earned vest at the end of the three-year performance period and the remaining 50% one year after the performance period ends, subject to continued employment. Compensation expense is being recognized over a four-year period.

LTIP Units

In May 2018, as part of their annual compensation, we granted a total of 25,770 fully vested LTIP Units to certain of our trustees with an aggregate grant-date fair value of $794,000.

Other Equity Awards

Certain executives have elected to receive all or a portion of any cash bonus that may be paid in 2019, related to 2018 service, in the form of fully vested LTIP Units.

Share-Based Compensation Expense

Share-based compensation expense is summarized as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Time-Based LTIP Units	$	2,520		$	885		$	7,772		$	885
Performance-Based LTIP Units	1,391			469			3,898			469
LTIP Units	—			—			794			—
Other equity awards	989			232			2,693			1,526
Share-based compensation expense - other	4,900			1,586			15,157			2,880
Formation Awards	1,375			3,963			4,192			3,963
LTIP and OP Units ⁽¹⁾	7,012			10,482			22,720			10,482
Share-based compensation related to Formation Transaction ⁽²⁾	8,387			14,445			26,912			14,445
Total share-based compensation expense	13,287			16,031			42,069			17,325
Less amount capitalized	(873		)	(161		)	(2,379		)	(161		)
Share-based compensation expense	$	12,414		$	15,870		$	39,690		$	17,164

^{______________________________________________}


⁽¹⁾	Represents share-based compensation expense for LTIP Units and OP Units subject to post-Combination employment obligations.


⁽²⁾	Included in "General and administrative expense: Share-based compensation related to Formation Transaction" in the accompanying statements of operations.

As of September 30, 2018, we had $107.2 million of total unrecognized compensation expense related to unvested share-based payment arrangements (unvested OP Units, Formation Awards, Time-Based LTIP Units and Performance-Based LTIP Units). This expense is expected to be recognized over a weighted average period of 2.6 years.