Noncontrolling Interest in the Operating Partnership

6 Months Ended

Jun. 30, 2018

Noncontrolling Interest in the Operating Partnership [Abstract]

Noncontrolling Interest in the Operating Partnership

NOTE 11.  NONCONTROLLING INTEREST IN THE OPERATING PARTNERSHIP

Noncontrolling interest in the operating partnership represents the limited partners’ proportionate share of the equity in the operating partnership and long-term incentive plan (“LTIP”) units (see Note 12).  Earnings and loss are allocated to noncontrolling interest in accordance with the weighted average percentage ownership of the operating partnership during the period. 

Our ownership interest in the operating partnership as of both June 30, 2018 and December 31, 2017 was 99.3%. At June 30, 2018 and December 31, 2017, 4,809,927 and 4,550,242common units owned by minority interest holders were outstanding, all of which were held by limited partners.  All LTIP units previously outstanding were cancelled on June 28, 2017 (see Note 12). The total redemption value for the common units was $962and $871 at June 30, 2018 and December 31, 2017, respectively.

Each limited partner of the operating partnership may, subject to certain limitations, require that the operating partnership redeem all or a portion of his or her common units at any time after a specified period following the date the units were acquired, by delivering a redemption notice to the operating partnership. When a limited partner tenders common units for redemption, the Company can, at its sole discretion, choose to purchase the units for either (1) a number of shares of Company common stock at a rate of one share of common stock for each 52common units redeemed or (2) cash in an amount equal to the market value of the number of shares of Company common stock the limited partner would have received if the Company chose to purchase the units for common stock. Nocommon units were redeemed during the three or six months endedJune 30, 2018 or 2017.