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Shareholders' equity
 3 Months Ended
Mar. 31, 2014
Shareholders' equity  
Shareholders' equity

Note 8. Shareholders' equity

Distributions

        In March 2014, our board of trustees declared a quarterly distribution of $0.05 per common share payable on April 10, 2014 to shareholders of record on March 25, 2014. Accordingly, distributions payable to common shareholders of $8.9 million and $0.4 million have been recorded within accounts payable and accrued expenses and amounts payable to affiliates, respectively, in the accompanying condensed consolidated balance sheet as of March 31, 2014, and included in distributions to common shareholders in the accompanying condensed consolidated statement of equity.

        In March 2014, our board of trustees declared a quarterly distribution of $0.15113 per Series C Convertible Unit payable on April 10, 2014 to shareholders of record on March 31, 2014. Accordingly, a distribution payable to Series C Convertible Unit holders of $4.5 million has been recorded within amounts payable to affiliates in the accompanying condensed consolidated balance sheet as of March 31, 2014 (see Note 9), and included in distributions to noncontrolling interests in the accompanying condensed consolidated statement of equity.

        In February 2014, our board of trustees declared quarterly distributions of $0.3125 and $0.35 per share on our 5.0% Series A Participating Preferred Shares and 5.0% Series B Participating Preferred Shares, respectively. Total quarterly distributions of approximately $1.6 million and $1.5 million on our 5.0% Series A Participating Preferred Shares and 5.0% Series B Participating Preferred Shares, respectively, which were both paid on March 31, 2014 to shareholders of record on March 15, 2014, have been included in distributions to preferred shareholders in the accompanying condensed consolidated statement of equity.

Noncontrolling interest

        Noncontrolling interest as reflected in the Company's condensed consolidated balance sheet primarily consists of the interest held by the Sponsor in units in the Company's Operating Partnership. As of March 31, 2014 and December 31, 2013, the Sponsor owned 13,787,292, or approximately 6.9%, of the total 199,291,586 Class A units in the Operating Partnership. Additionally, the Sponsor owned all 31,085,974 Series C convertible units and all 4,375,000 Series D convertible units in the Operating Partnership as of March 31, 2014, and December 31, 2013. Also included in noncontrolling interest are outside ownership interests in certain consolidated subsidiaries of the Company.

        Noncontrolling interest as reflected in the Company's condensed consolidated statements of operations for the three months ended March 31, 2014 primarily consisted of $4.5 million of preferred income allocated to Series C convertible units, $0.8 million of net loss allocated to Class A units, and $0.1 million of net loss allocated to noncontrolling interests in certain of the Company's consolidated subsidiaries.

        Noncontrolling interest as reflected in the Company's condensed consolidated statements of operations for the three months ended March 31, 2013 primarily consisted of $0.8 million of preferred income allocated to Series C convertible units and $0.1 million of net income allocated to 3.5% convertible perpetual preferred units (prior to conversion of such units into Class A units on June 14, 2013).

2012 Equity Incentive Plan

        During the three months ended March 31, 2014, the Company granted stock options for 970,000 Class A common shares and 92,000 restricted stock units to certain employees of the Company under the 2012 Equity Incentive Plan. The options and restricted stock units granted during the three months ended March 31, 2014 vest over four years and 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, 2014 and 2013:

 
   For the Three Months Ended March 31,  
 
   2014   2013  
 
   Stock Options   Weighted Average
Exercise Price		   Stock Options   Weighted Average
Exercise Price		  

Outstanding at beginning of the period

     1,190,000   $ 15.48     —   $ —  

Granted

     970,000     16.63     700,000     15.00  

Exercised

     —     —     —     —  

Forfeited

     (41,250 )   16.18     —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Outstanding at end of the period

     2,118,750   $ 15.99     700,000   $ 15.00  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Exercisable at end of the period

     160,000   $ 15.00     —   $ —  

        The following table summarizes the Black-Scholes Option Pricing Model inputs used for valuation of the stock options for Class A common shares issued during the three months ended March 31, 2014:

Weighted average fair value

   $ 5.01  

Weighted average remaining life (years)

     9.9  

Expected term (years)

     7.0  

Dividend Yield

     3 %

Volatility

     38.5 %

Risk-free interest rate

     2.2 %

        Total non-cash share-based compensation expense related to stock options and restricted stock units was $0.5 million and $0.2 million for the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014, stock options for 41,250 Class A common shares and 2,000 restricted stock units were forfeited and stock options for 2,118,750 Class A common shares and 90,000 restricted stock units remained outstanding as of March 31, 2014.