XML 81 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Shareholders' Equity
 12 Months Ended
Dec. 31, 2011
Shareholders' Equity  
Shareholders' Equity

Note 4. Shareholders' Equity

We have common shares available for issuance under the terms of our 1999 Share Award Plan, as amended, and our 2003 Share Award Plan, collectively referred to as the Share Award Plans. We awarded 72,450 common shares with an aggregate market value of $1,732, 66,850 common shares with an aggregate market value of $1,625 and 63,450 common shares with an aggregate market value of $1,228 to our officers and certain employees of Reit Management & Research LLC, or RMR, pursuant to the Share Award Plans during the years ended December 31, 2011, 2010 and 2009, respectively. In addition, we awarded each of our Trustees 2,000 common shares in each of 2011, 2010 and 2009 with an aggregate market value of $234 ($47 to each Trustee), $222 ($44 to each Trustee) and $155 ($31 to each Trustee), respectively, pursuant to the Share Award Plans as part of their annual fees. Shares awarded to the Trustees vest immediately. The shares awarded to our officers and certain employees of our manager vest in five annual installments beginning on the date of grant. We include the value of awarded shares in general and administrative expenses on our consolidated income statement at the time the awards vest.

A summary of shares granted and vested under the terms of our Share Award Plans from January 1, 2009 to December 31, 2011 is as follows:

 
   Number of Shares   Weighted Average
Grant Date Fair
Value 		 

Unvested shares at December 31, 2008

     77,485   $ 20.79  

Shares granted in 2009

     73,450   $ 18.83  

Shares vested in 2009

     (48,415 ) $ 18.61  
             

Unvested shares at December 31, 2009

     102,520   $ 20.04  

Shares granted in 2010

     76,850   $ 24.04  

Shares vested in 2010

     (60,700 ) $ 23.85  
             

Unvested shares at December 31, 2010

     118,670   $ 21.83  

Shares granted in 2011

     82,450   $ 23.84  

Shares vested in 2011

     (68,500 ) $ 23.36  
             

Unvested shares at December 31, 2011

     132,620   $ 22.86  
             

The 132,620 unvested shares as of December 31, 2011 are scheduled to vest as follows: 50,440 shares in 2012, 39,970 shares in 2013, 27,720 shares in 2014 and 14,490 shares in 2015. As of December 31, 2011, the estimated future compensation for the unvested shares was $2,976 based on the closing share price of $22.44 on December 31, 2011. The weighted average period over which the compensation expense will be recorded is approximately 1.8 years. We recorded share based compensation expense of $1,659 in 2011, $1,445 in 2010 and $1,127 in 2009. At December 31, 2011, 2,411,065 of our common shares remain available for issuance under the Share Award Plans. All share awards are fully expensed as the grants vest.

Our cash distributions to our common shareholders for the years ended December 31, 2011, 2010 and 2009, were $1.49 per share, $1.45 per share, and $1.42 per share, respectively. The characterization of the distributions made in 2011, 2010 and 2009 was 65.64%, 68.33%, and 76.14% ordinary income, respectively; 27.48%, 31.67%, and 23.86% return of capital, respectively; 2.59%, 0%, and 0% capital gain, respectively; and 4.29%, 0%, and 0% unrecaptured Section 1250 gain, respectively.

On January 4, 2012, we declared a quarterly distribution of $0.38 per common share, or $61,805, to our common shareholders for the quarter ended December 31, 2011. This distribution was paid to shareholders on February 9, 2012, using cash on hand and borrowings under our revolving credit facility.

In July and October 2011, we issued 11,500,000 and 9,200,000 common shares in two public offerings, raising net proceeds of approximately $247,498 and $184,735, respectively. In December 2010, we issued 14.4 million common shares in a public offering, raising net proceeds of approximately $282,000. We used the net proceeds from these offerings to repay borrowings outstanding under our revolving credit facility and for general business purposes, including the partial funding of the acquisitions described above.