STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company follows the provisions of ASC 718, Compensation - Stock Compensation, to account for its stock-based compensation plans. ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued.

Stock-based compensation cost for employees was $2,069,000 and $1,831,000 for the three months ended March 31, 2014 and 2013, respectively, of which $511,000 and $551,000 were capitalized as part of the Company’s development costs. Stock-based compensation expense for directors was $119,000 and $90,000 for the three months ended March 31, 2014 and 2013, respectively.

In March 2014, the Compensation Committee of the Company’s Board of Directors (the Committee) evaluated the Company's performance compared to certain annual performance goals for the year ended December 31, 2013. Based on the evaluation, 39,211 shares were awarded to the Company's executive officers at a grant date fair value of $61.96 per share. These shares vested 20% on the date shares were determined and awarded and will vest 20% per year on January 1 in years 2015, 2016, 2017 and 2018. The shares will be expensed on a straight-line basis over the remaining service period.

Also in March 2014, the Committee evaluated the Company's total shareholder return, both on an absolute basis for 2013 as well as on a relative basis compared to the NAREIT Equity Index, NAREIT Industrial Index and Russell 2000 Index for the five-year period ended December 31, 2013. Based on the evaluation, 32,431 shares were awarded to the Company's executive officers at a grant date fair value of $61.96 per share. These shares vested 25% on the date shares were determined and awarded and will vest 25% per year on January 1 in years 2015, 2016 and 2017. The shares will be expensed on a straight-line basis over the remaining service period.

Notwithstanding the foregoing, shares issued to the Company’s Chief Executive Officer, David H. Hoster II, and Chief Financial Officer, N. Keith McKey, will become fully vested no later than January 1, 2016 and April 6, 2016, respectively.

Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to participants with the related weighted average grant date fair value share prices.  Of the shares that vested in the first three months of 2014, the Company withheld 31,417 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.  As of the vesting date, the fair value of shares that vested during the first three months of 2014 was $5,656,000.

	Three Months Ended
Award Activity:	March 31, 2014
	Shares		Weighted Average Grant Date Fair Value
Unvested at beginning of period	294,406		$	47.19
Granted	71,642		61.96
Forfeited	—		—
Vested	(96,532	)	50.75
Unvested at end of period	269,516		$	49.84