Share-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Note 11. Share-Based Compensation

2012 Equity Incentive Plan

The Company’s employees are compensated through the Operating Partnership, including share-based compensation. When the Company issues Class A common shares under the 2012 Equity Incentive Plan (the “Plan”), the Operating Partnership issues an equivalent number of Class A units to AH4R and non-management members of our board of trustees.

Restricted stock units (“RSUs”) granted to employees during the six months ended June 30, 2020 vest over a three-year service period, and stock options and RSUs granted to employees during the six months ended June 30, 2019 vest over a four-year service period. RSUs granted to non-management trustees vest over a one-year service period. Stock options granted during the six months ended June 30, 2019 expire 10 years from the date of grant.

The following table summarizes stock option activity under the Plan for the six months ended June 30, 2020 and 2019:


	For the Six Months Ended
	June 30, 2020	June 30, 2019
Options outstanding at beginning of period	1,529,800	2,252,275
Granted	—	20,000
Exercised	(255,550)	(650,375)
Forfeited	(2,850)	(12,350)
Options outstanding at end of period	1,271,400	1,609,550
Options exercisable at end of period	1,124,800	1,240,400

The following table summarizes RSU activity under the Plan for the six months ended June 30, 2020 and 2019:


	For the Six Months Ended
	June 30, 2020	June 30, 2019
RSUs outstanding at beginning of period	599,109	372,375
Units awarded	461,279	343,334
Units vested	(206,597)	(110,900)
Units forfeited	(39,995)	(8,700)
RSUs outstanding at end of period	813,796	596,109

The Company’s noncash share-based compensation expense relating to corporate administrative employees is included in general and administrative expense and the noncash share-based compensation expense relating to centralized and field property management employees is included in property management expenses. The following table summarizes the activity that relates to the Company’s noncash share-based compensation expense for the three and six months ended June 30, 2020 and 2019 (in thousands):


	For the Three Months Ended						For the Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
General and administrative expense	$	1,649	$	923	$	3,018	$	1,582
Property management expenses	441		346		880		639
Total noncash share-based compensation expense	$	2,090	$	1,269	$	3,898	$	2,221