Share-Based Compensation

9 Months Ended

Sep. 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 nine months ended September 30, 2020 vest over a three-year service period, and stock options and RSUs granted to employees during the nine months ended September 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 nine months ended September 30, 2019 expire 10 years from the date of grant.

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


	For the Nine Months Ended September 30,
	2020	2019
Options outstanding at beginning of period	1,529,800	2,252,275
Granted	—	20,000
Exercised	(333,650)	(698,525)
Forfeited	(2,850)	(12,350)
Options outstanding at end of period	1,193,300	1,561,400
Options exercisable at end of period	1,049,200	1,194,750

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


	For the Nine Months Ended September 30,
	2020	2019
RSUs outstanding at beginning of period	599,109	372,375
Units awarded	470,147	345,334
Units vested	(207,947)	(111,000)
Units forfeited	(42,565)	(11,900)
RSUs outstanding at end of period	818,744	594,809

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 nine months ended September 30, 2020 and 2019 (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020		2019
General and administrative expense	$	1,723	$	938	$	4,741	$	2,520
Property management expenses	447		350		1,327		989
Total noncash share-based compensation expense	$	2,170	$	1,288	$	6,068	$	3,509