Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation and Other Compensation Matters (Tables)

v3.8.0.1
Share-Based Compensation and Other Compensation Matters (Tables)
12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Reporting for share-based compensation expense
The table below sets forth our reporting for share based compensation cost (in thousands):
 
 
 For the Years Ended December 31,
 
 
2017
 
2016
 
2015
General, administrative and leasing expenses
 
$
4,649

 
$
5,816

 
$
5,574

Property operating expenses
 
966

 
1,027

 
1,000

Capitalized to development activities
 
480

 
610

 
824

Share-based compensation cost
 
$
6,095

 
$
7,453

 
$
7,398

Summary of restricted share transactions under the entity's share-based compensation plans
The following table summarizes restricted shares under the share-based compensation plans for 2015, 2016 and 2017:
 
 
 Shares
 
Weighted Average Grant Date Fair Value
Unvested as of December 31, 2014
 
390,507

 
$
26.19

Granted
 
201,024

 
28.69

Forfeited
 
(10,550
)
 
26.05

Vested
 
(202,781
)
 
26.07

Unvested as of December 31, 2015
 
378,200

 
27.58

Granted
 
231,937

 
24.77

Forfeited
 
(22,907
)
 
25.31

Vested
 
(215,983
)
 
27.19

Unvested as of December 31, 2016
 
371,247

 
26.20

Granted
 
239,479

 
33.84

Forfeited
 
(27,056
)
 
27.80

Vested
 
(158,044
)
 
26.27

Unvested as of December 31, 2017
 
425,626

 
$
30.37

Unvested shares as of December 31, 2017 that are expected to vest
 
402,870

 
$
30.31

Schedule of PSU's Granted
We made the following grants of PSUs to executives from 2013 through 2017 (dollars in thousands):
Grant Date
 
Number of PSUs Granted
 
Performance Period Commencement Date
 
Performance Period End Date
 
Grant Date Fair Value
 
Number of PSUs Outstanding as of December 31, 2017
3/1/2013
 
69,579

 
1/1/2013
 
12/31/2015
 
$
1,867

 

3/6/2014
 
49,103

 
1/1/2014
 
12/31/2016
 
$
1,723

 

3/5/2015
 
45,656

 
1/1/2015
 
12/31/2017
 
$
1,678

 
15,767

3/1/2016
 
26,299

 
1/1/2016
 
12/31/2018
 
$
1,000

 
24,850

1/1/2017
 
39,351

 
1/1/2017
 
12/31/2019
 
$
1,400

 
39,351

Schedule of payouts for defined performance under performance-based awards of share-based compensation
The number of PSUs earned (“earned PSUs”) at the end of the performance period will be determined based on the percentile rank of COPT’s total shareholder return relative to a peer group of companies, as set forth in the following schedule:
Percentile Rank
 
Earned PSUs Payout %
75th or greater
 
200% of PSUs granted
50th or greater
 
100% of PSUs granted
25th
 
50% of PSUs granted
Below 25th
 
0% of PSUs granted
Schedule of assumptions used in Monte Carlo models for PSUs
The grant date fair value and certain of the assumptions used in the Monte Carlo models for the PSUs granted in 2015, 2016 and 2017 are set forth below:
Grant Date
 
Grant Date Fair Value
 
Baseline Common Share Value
 
Expected Volatility of Common Shares
 
Risk-free Interest Rate
3/5/2015
 
$
36.76

 
$
29.28

 
19.9
%
 
0.99
%
3/1/2016
 
$
38.21

 
$
23.90

 
20.4
%
 
0.96
%
1/1/2017
 
$
38.43

 
$
31.22

 
19.0
%
 
1.47
%
Deferred share awards
We made the following grants of deferred share awards to nonemployee members of our Board of Trustees in 2015, 2016 and 2017 (dollars in thousands, except per share amounts):
Year of Grant
 
Number of Deferred Share Awards Granted
 
Aggregate Grant Date Fair Value
 
Grant Date Fair Value Per Share
2015
 
24,056

 
$
642

 
$
26.70

2016
 
24,944

 
$
671

 
$
26.89

2017
 
10,032

 
$
326

 
$
32.47

Deferred share awards vested activity
We issued the following common shares in settlement of deferred shares in 2015, 2016 and 2017 (dollars in thousands, except per share amounts):
 
 
 For the Years Ended December 31,
 
 
2017
 
2016
 
2015
Number of common shares issued
 
15,590

 
12,028

 
15,485

Grant date fair value
 
$
26.89

 
$
26.70

 
$
26.77

Aggregate intrinsic value
 
$
508

 
$
322

 
$
413

Summary of stock option transactions under the entity's share-based compensation plans
The table below sets forth information regarding our outstanding options as of the following dates (dollars in thousands, except per share data):
 
 
 Options Outstanding and Exercisable
 
Weighted Average Exercise Price Per Share
 
Weighted Average Remaining Contractual Term
(in Years)
 
Aggregate Intrinsic Value
December 31, 2014
 
559,736

 
$39.60
 
2
 
$
167

December 31, 2015
 
425,347

 
$42.75
 
1
 
$

December 31, 2016
 
201,100

 
$43.35
 
1
 
$
31

December 31, 2017
 
60,000

 
$35.17
 
1
 
$