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Share and Unit-Based Plans:
 3 Months Ended
Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share and Unit-Based Plans:
Share and Unit-Based Plans:
Under the Long-Term Incentive Plan ("LTIP"), each award recipient is issued a form of operating partnership units ("LTIP Units") in the Operating Partnership. 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, or cash at the Company's option, on a one-unit for one-share basis. LTIP Units receive cash dividends based on the dividend amount paid on the common stock of the Company. The LTIP may include both market-indexed awards and service-based awards.
On January 1, 2015, the Company granted 49,451 LTIP Units with a grant date fair value of $83.41 per LTIP Unit that will vest in equal annual installments over a service period ending December 31, 2017. Concurrently, the Company granted 186,450 market-indexed LTIP Units ("2015 LTIP Units") at a grant date fair value of $66.37 per LTIP Unit that vest over a service period ending December 31, 2015. The 2015 LTIP Units were equally divided between two types of awards. The terms of both types of awards were the same, except one award has an additional 3% absolute total stockholder return requirement, which if it is not met, then such LTIP Units will not vest.
On March 6, 2015, the Company granted 132,607 LTIP Units at a fair value of $86.72 per LTIP Unit that were fully vested on the grant date.
The fair value of the market-indexed LTIP Units are 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 (for market-indexed awards), is assumed to follow the Multivariate Geometric Brownian Motion Process. Multivariate Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case, the stock price) to vary randomly from its current value and take any value greater than zero. The volatilities of the returns on the share price of the Company and the peer group REITs were estimated based on a look-back period. The expected growth rate of the stock prices over the "derived service period" is 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 March 31,
 
 
2015
 
2014
LTIP Units
 
$
15,228

 
$
18,240

Stock awards
 
75

 
114

Stock units
 
3,197

 
1,682

Stock options
 
4

 
4

Phantom stock units
 
311

 
306

 
 
$
18,815

 
$
20,346


The Company capitalized share and unit-based compensation costs of $4,347 and $3,841 for the three months ended March 31, 2015 and 2014, respectively. Unrecognized compensation costs of share and unit-based plans at March 31, 2015 consisted of $15,522 from LTIP Units, $174 from stock awards, $6,107 from stock units, $39 from stock options and $500 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, 2015
46,695

 
$
58.89

 
9,189

 
$
59.25

 
9,269

 
$
58.35

 
144,374

 
$
59.94

Granted
368,508

 
75.98

 
—

 
—

 
3,185

 
84.97

 
75,171

 
86.72

Vested
(132,607
)
 
86.72

 
(6,201
)
 
58.00

 
(4,350
)
 
71.53

 
(80,334
)
 
59.06

Forfeited
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at March 31, 2015
282,596

 
$
68.12

 
2,988

 
$
61.84

 
8,104

 
$
61.73

 
139,211

 
$
74.94

 
 
 
(1)
Value represents the weighted average grant date fair value.
The following table summarizes the activity of the stock appreciations rights ("SARs") and stock options outstanding:
 
SARs
 
Stock Options
 
Shares
 
Value(1)
 
Shares
 
Value(1)
Balance at January 1, 2015
772,639

 
$
56.67

 
10,068

 
$
59.57

Granted
—

 
—

 
—

 
—

Exercised
(342,981
)
 
56.88

 
—

 
—

Forfeited
—

 
—

 
—

 
—

Balance at March 31, 2015
429,658

 
$
56.50

 
10,068

 
$
59.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Value represents the weighted average exercise price.