What is share-based compensation expense and the impact of SFAS 123 ( R )?
We account for share-based compensation issued to members of our board of directors and our manager using the fair value methodology prescribed by SFAS No. 123®, Shared-Based Payment. Compensation cost related to restricted common stock issued to members of our board of directors is measured at its estimated fair value at the grant date, and is amortized and expensed over the vesting period on a straight-line basis. Compensation costs related to restricted common stock and common stock options issued to our Manager are initially measured at estimated fair value at the grant date, and remeasured on subsequent dates to the extent the awards are unvested. The remeasurement of unvested restricted common stock and common stock options issued to our Manager may cause earnings volatility as changes in the fair value of the unvested grants of restricted common stock are recorded in earnings. A key measure used by management to determine the amount of cash distributions to be paid to stockholde
