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.

	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:

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:

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.