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Equity Compensation Plans | 12 Months Ended
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Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Equity Compensation Plans | NOTE 7: Equity Compensation Plans Long Term Incentive Plan In May 2016, our shareholders approved and our board of directors adopted an amended and restated Long Term Incentive Plan (the “Incentive Plan”), which provides for the grants of awards to our directors, officers and full-time employees, full-time employees of our former advisor and its affiliates, full-time employees of entities that provide services to our former advisor, directors of our former advisor or of entities that provide services to it, certain of our consultants and certain consultants to our former advisor and its affiliates or to entities that provide services to our former advisor. The Incentive Plan authorizes the grant of restricted or unrestricted shares of our common stock, performance share units (“PSUs”), non-qualified and incentive stock options, restricted stock units, stock appreciation rights (“SARs”), dividend equivalents and other stock- or cash-based awards. In conjunction with the amendment, the number of shares of common stock issuable under the Incentive Plan was increased to 4,300,000 shares and the term of the incentive plan was extended to May 12, 2026. Under the incentive plan or predecessor incentive plans, we have granted restricted shares and stock appreciation rights (“SARs”), to employees and employees of our former advisor. These awards generally vested over a three or four year period. In addition, we have granted unrestricted shares to our directors. These awards generally vested immediately. For the years ended December 31, 2018, 2017 and 2016 we recognized $2,524, $1,968 and $1,222 of stock compensation expense, respectively. A summary of the restricted common share awards activity of the incentive plan is presented below.
| 2018 |  |  | 2017 |  |  | 2016 |
| Number of Shares |  |  | Weighted Average Grant Date Fair Value Per Share |  |  | Number of Shares |  |  | Weighted Average Grant Date Fair Value Per Share |  |  | Number of Shares |  |  | Weighted Average Grant Date Fair Value Per Share |
Balance, January 1, |  | 295,847 |  |  | $ | 7.84 |  |  |  | 281,005 |  |  | $ | 6.99 |  |  |  | 117,000 |  |  | $ | 9.13 |
Granted |  | 233,706 |  |  |  | 8.64 |  |  |  | 168,010 |  |  |  | 9.17 |  |  |  | 228,000 |  |  |  | 6.33 |
Vested |  | (175,555 | ) |  |  | 7.99 |  |  |  | (142,748 | ) |  |  | 7.68 |  |  |  | (60,661 | ) |  |  | 8.62 |
Forfeited |  | (50,179 | ) |  |  | 8.45 |  |  |  | (10,420 | ) |  |  | 8.56 |  |  |  | (3,334 | ) |  |  | 7.47 |
Balance, December 31, |  | 303,819 |  |  | $ | 8.22 |  |  |  | 295,847 |  |  | $ | 7.84 |  |  |  | 281,005 |  |  | $ | 6.99 |
As of December 31, 2018, the unearned compensation cost relating to unvested restricted common share awards was $1,948. The estimated fair value of restricted common share awards vested during 2018, 2017, and 2016 was $1,539, $1,319, and $427, respectively. A summary of the SARs activity of the incentive plan is presented below.
| 2018 |  |  | 2017 |  |  | 2016 |
| SARs |  |  | Weighted Average Exercise Price |  |  | SARs |  |  | Weighted Average Exercise Price |  |  | SARs |  | Weighted Average Exercise Price |
Outstanding, January 1, |  | 250,000 |  |  | $ | 9.28 |  |  |  | 337,000 |  |  | $ | 9.15 |  |  |  | 351,000 |  | $ | 9.13 |
Granted |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Expired |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,000 | ) |  | 9.35 |
Exercised |  | (55,000 | ) |  |  | 9.02 |  |  |  | (84,000 | ) |  |  | 8.78 |  |  |  | (8,000 | ) |  | 8.20 |
Forfeited |  | — |  |  |  | — |  |  |  | (3,000 | ) |  |  | 9.35 |  |  |  | (4,000 | ) |  | 9.35 |
Outstanding, December 31, |  | 195,000 |  |  | $ | 9.35 |  |  |  | 250,000 |  |  | $ | 9.28 |  |  |  | 337,000 |  | $ | 9.15 |
SARs exercisable at December 31, |  | 195,000 |  |  |  |  |  |  |  | 160,000 |  |  |  |  |  |  |  | 128,998 |  |  |  |
As of December 31, 2018, our closing common stock price was $9.18. The exercise price of all outstanding SARs was $9.35. Therefore, the total intrinsic value of SARs outstanding and exercisable at December 31, 2018 was $0. The weighted average contractual life of outstanding and exercisable SARs is 1.2 years. As of December 31, 2018, there was no unearned compensation cost relating to unvested SAR awards. The following table summarizes the PSUs granted for the year ended December 31, 2018:
Grant Date |  | Type of PSUs Granted |  | Number of PSUs Granted |  |  | Performance Period Commencement Date |  | Performance Period End Date |  | Grant Date Fair Value |  |  | Number of PSUs Outstanding as of December 31, 2018 |
February 23, 2018 |  | Relative 3-year TSR vs NAREIT Apartment Index |  |  | 317,906 |  |  | January 1, 2018 |  | December 31, 2020 |  | $ | 4.19 |  |  |  | 317,906 |
February 23, 2018 |  | Strategic Objectives |  |  | 136,245 |  |  | January 1, 2018 |  | December 31, 2020 |  | $ | 8.67 |  |  |  | 136,245 |
Our assumptions used in computing the fair value of the PSUs at the dates of their respective awards, using the Monte Carlo method, were as follows:
| For the year ended December 31, 2018 |  |
Dividend yield |  | 8.2 | % |
Volatility |  | 28.0 | % | (a)
Expected term | 2.9 years |  |
| (a) | This represents the volatility assumption used for IRT. The volatility assumptions used for our peer group and the NAREIT Mortgage Index ranged from 19% to 41%.
The following table summarizes the PSUs granted for the year ended December 31, 2017:
Grant Date |  | Type of PSUs Granted |  | Number of PSUs Granted |  |  | Performance Period Commencement Date |  | Performance Period End Date |  | Grant Date Fair Value |  | Number of PSUs Outstanding as of December 31, 2018 |
February 28, 2017 |  | Relative 3-year TSR vs NAREIT Apartment Index |  |  | 135,881 |  |  | January 1, 2017 |  | December 31, 2019 |  | 4.83 |  |  | 135,881 |
February 28, 2017 |  | Absolute 3-Year TSR |  |  | 45,294 |  |  | January 1, 2017 |  | December 31, 2019 |  | 3.13 |  |  | 45,294 |
July 26, 2017 |  | Strategic Objectives |  |  | 45,294 |  |  | January 1, 2017 |  | December 31, 2019 |  | 9.87 |  |  | 45,294 |
Our assumptions used in computing the fair value of the PSUs at the dates of their respective awards, using the Monte Carlo method, were as follows:
| For the year ended December 31, 2017 |  |
Dividend yield |  | 8.1 | % |
Volatility |  | 27.0 | % | (a)
Expected term | 2.8 years |  |
| (a) | This represents the volatility assumption used for IRT. The volatility assumptions used for our peer group and the NAREIT Mortgage Index ranged from 19% to 28%.
The Company estimates future expenses associated with PSUs outstanding at December 31, 2018 to be $1,948, which will be recognized over a weighted-average period of 2.2 years. On February 6, 2019, our compensation committee awarded 92,925 restricted stock awards, valued at $10.35 per share, or $962 in the aggregate to non-executive employees. These restricted stock awards vest over a three-year period.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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