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Share and Unit-Based Plans:
 9 Months Ended
Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share and Unit-Based Plans:
Share and Unit-Based Plans:
On February 15, 2013, the Company granted 332,189 limited partnership units of the Operating Partnership ("LTIP Units") under the Long-Term Incentive Plan to seven executive officers at a weighted average grant date fair value of $49.67 per LTIP Unit. The new grants vest over a service period ending December 31, 2013 based on the percentile ranking of the Company in terms of total return to stockholders (the "Total Return") per share of common stock relative to the Total Return of a group of peer REITs, as measured at the end of the measurement period. Upon the occurrence of specified events and subject to the satisfaction of applicable vesting conditions, LTIP Units (after conversion into OP Units) are ultimately redeemable for common stock of the Company on a one-unit for one-share basis.
The fair value of the Company's LTIP Units granted in 2013 was estimated on the date of grant using a Monte Carlo Simulation model. The stock price of the Company, along with the stock prices of the group of peer REITs, was assumed to follow the Multivariate Geometric Brownian Motion Process. Multivariate Geometric Brownian Motion Process modeling is commonly used in financial markets, as it allows the modeled quantity (in this case, the stock price) to vary randomly from its current value based on the stock price's expected volatility and current market interest rates. The volatilities of the returns on the stock price of the Company and the peer group REITs were estimated based on a one-year look-back period. The expected growth rate of the stock prices over the derived service period was determined with consideration of the risk free rate as of the grant date.
The following summarizes the compensation cost under the share and unit-based plans:
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
LTIP Units
$
4,743

 
$
2,778

 
$
12,393

 
$
6,646

Stock awards
121

 
125

 
353

 
345

Stock units
674

 
383

 
3,165

 
2,991

Stock options
4

 
18

 
12

 
18

Stock appreciation rights ("SARs")
—

 
210

 
—

 
291

Phantom stock units
248

 
211

 
735

 
721

 
$
5,790

 
$
3,725

 
$
16,658

 
$
11,012


The Company capitalized share and unit-based compensation costs of $657 and $436 for the three months ended September 30, 2013 and 2012, respectively, and $2,745 and $2,209 for the nine months ended September 30, 2013 and 2012, respectively. Unrecognized compensation costs of share and unit-based plans at September 30, 2013 consisted of $4,744 from LTIP Units, $779 from stock awards, $3,650 from stock units, $64 from stock options and $1,155 from phantom stock units.
The following table summarizes the activity of the non-vested LTIP Units, stock awards, phantom stock units and stock units:
 
LTIP Units
 
Stock Awards
 
Phantom Stock Units
 
Stock Units
 
Units
 
Value(1)
 
Shares
 
Value(1)
 
Units
 
Value(1)
 
Units
 
Value(1)
Balance at January 1, 2013
200,000

 
$
38.63

 
20,924

 
$
49.36

 
—

 
$
—

 
114,677

 
$
52.19

Granted
332,189

 
49.67

 
8,963

 
61.84

 
32,063

 
58.94

 
67,920

 
62.01

Vested
(200,000
)
 
38.63

 
(10,886
)
 
46.70

 
(12,377
)
 
59.38

 
(45,279
)
 
51.29

Forfeited
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at September 30, 2013
332,189

 
$
49.67

 
19,001

 
$
56.77

 
19,686

 
$
58.66

 
137,318

 
$
57.24

 
 
 
(1)
Value represents the weighted-average grant date fair value.
The following table summarizes the activity of the SARs and stock options outstanding:
 
SARs
 
Stock Options
 
Shares
 
Value(1)
 
Shares
 
Value(1)
Balance at January 1, 2013
1,164,185

 
$
56.66

 
12,768

 
$
54.69

Granted
—

 
—

 
—

 
—

Exercised
(93,194
)
 
56.63

 
(2,700
)
 
36.51

Forfeited
—

 
—

 
—

 
—

Balance at September 30, 2013
1,070,991

 
$
56.66

 
10,068

 
$
59.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
Value represents the weighted-average exercise price.