7.Equity

Equity activity was as follows (in thousands):


	Total
	Equity
Balance at December 31, 2017	$	758,648
Net income		20,359
Stock-based compensation expense		1,376
Stock option exercise		123
Common stock dividends		(22,578)
Other		(1,065)
Balance at March 31, 2018	$	756,863

Common Stock. We have an equity distribution agreement to issue and sell, from time to time, up to $200,000,000 in aggregate offering price of our company common shares.

During the three months ended March 31, 2017, we sold 312,881 shares of common stock for $14,578,000 in net proceeds under our equity distribution agreement. At March 31, 2018, and 2017, we had $185,162,000 available under our equity distribution agreement.

During the three months ended March 31, 2018 and 2017, we acquired 28,256 shares and 35,563 shares, respectively, of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.

Non-controlling Interests. During 2017, we entered into a partnership and acquired an 87-unit ALF and MC community for $10,000,000. Additionally, we entered into a partnership for the acquisition of land and development of a 110-unit ILF/ALF/MC community in Wisconsin. The commitment totals approximately $22,471,000 including the land purchase. We hold a 90% economic interest in both partnerships. Since we exercise power over and receive benefits from the partnerships, we are considered the primary beneficiary of the partnerships. Accordingly, we consolidate the partnerships and carry the non-controlling interests at cost.

Available Shelf Registrations. We have an automatic shelf registration statement on file with the SEC, and currently have the ability to file additional automatic shelf registration statements, to provide us with capacity to publicly offer an indeterminate amount of common stock, preferred stock, warrants, debt, depositary shares, or units. We may from time to time raise capital under our automatic shelf registration statement in amounts, at prices, and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of the offering.

Distributions. We declared and paid the following cash dividends (in thousands):


	Three Months Ended March 31,
	2018						2017
	Declared			Paid			Declared			Paid
Common Stock	$	22,578	(1)	$	22,578	(1)	$	22,552	(1)	$	22,552	(1)

⁽¹⁾

Represents $0.19 per share per month for the three months ended March 31, 2018, and 2017.

In April 2018, we declared a monthly cash dividend of $0.19 per share on our common stock for the months of April, May and June, payable on April 30, May 31, and June 29, 2018, respectively, to stockholders of record on April 20, May 23, and June 21, 2018, respectively.

Stock-Based Compensation. Under our 2015 Equity Participation Plan (or the 2015 Plan), 1,400,000 shares of common stock have been reserved for awards, including nonqualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2015 Plan are set by our compensation committee at its discretion.

During the three months ended March 31, 2018 and 2017, no stock options were granted. The stock options exercised during the three months ended March 31, 2018 and 2017 were as follows:


		Weighted
		Average
	Options	Exercise		Option		Market
	Exercised	Price		Value		Value(1)
2018	5,000	$	24.65	$	123,000	$	205,000
2017	—	$	—	$	—	$	—

⁽¹⁾

As of exercise date.

At March 31, 2018, we had 20,000 stock options outstanding and exercisable. Compensation expense related to the vesting of stock options was $0 and $2,000 for the three months ended March 31, 2018 and 2017, respectively.

The following table summarizes our restricted stock and performance based stock units activity for the three months ended March 31, 2018 and 2017:


	Three months ended March 31,
	2018		2017
Outstanding, January 1		244,181		210,573
Granted		147,990		132,641
Vested		(61,733)		(65,683)
Outstanding, March 31		330,438		277,531

During the three months ended March 31, 2018 and 2017, we granted restricted stock and performance-based stock units under the 2015 Plan as follows:


	No. of	Price per
Year	Shares/Units	Share		Vesting Period
2018	81,819	$	38.18	ratably over 3 years
	66,171	$	38.18	TSR targets (1)
	147,990

2017	74,760	$	45.76	ratably over 3 years
	57,881	$	45.76	TSR targets (1)
	132,641

⁽¹⁾

Vesting is based on achieving certain total shareholder return (or TSR) targets in 4 years with acceleration opportunity in 3 years.

Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the three months ended March 31, 2018 was $1,376,000, compared to $1,257,000 for the same period in 2017. At March 31, 2018, the remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows:


	Remaining
	Compensation
Vesting Date	Expense
2018	$	4,284,000
2019		4,100,000
2020		2,210,000
2021		238,000
	$	10,832,000