Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

15. Stock-Based Compensation

Restricted Stock Awards

During the three and six months ended June 30, 2022, the Company awarded 32,868 and 174,913 shares of RSAs, respectively, to officers, employees and non-employee directors, under the Equity Incentive Plan. During the three and six months ended June 30, 2021, the Company issued 1,665 and 201,095 shares of RSAs, respectively. The holder of RSAs is generally entitled at all times on and after the date of issuance of the restricted common shares to exercise the rights of a stockholder of the Company, including the right to vote the shares and the right to receive dividends on the shares. The RSAs vest over a one, three, or four year period from the date of the grant and are subject to the holder's continued service through the applicable vesting dates and in accordance with the terms of the individual award agreements. The weighted average value of awards granted during the three and six months ended June 30, 2022, were $20.23 and $21.39, respectively, which were based on the market price per share of the Company's common stock on the grant date. The weighted average value of awards granted during the three and six months ended June 30, 2021, were $19.76 and $18.66, respectively.

The following table presents information about the Company's RSAs:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Compensation cost (a)	$	877	$	728	$	1,487	$	2,423
Dividends declared on unvested RSAs		106		97		203	201
Fair value of shares vested during the period		—		774		3,209		3,296

(a)

Includes $0.1 million compensation cost recognized from RSAs granted to non-employee directors for the three and six months ended June 30, 2022.


(in thousands, except recognition period)	June 30, 2022		December 31, 2021
Unamortized value of RSAs	$	6,794	$	4,715
Weighted average amortization period (in years)		2.5		2.4

The following table presents information about the Company's RSA activity:


	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		367		$	20.33		416		$	19.62
Granted		33			20.23		2			19.76
Vested		—			—		(40	)		19.81
Forfeited		(8	)		19.95		—			—
Unvested at end of period		392			20.33		378			19.60


	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		372		$	19.62		341		$	20.50
Granted		175			21.39		201			18.67
Vested		(146	)		19.80		(164	)		20.15
Forfeited		(9	)		20.06		—			—
Unvested at end of period		392			20.33		378			19.60

Performance-based Restricted Stock Units

The Company issued target grants of 121,883 and 132,189 PRSUs, during the six months ended June 30, 2022 and 2021, respectively, under the Equity Incentive Plan to the officers of the Company. There were no PRSUs granted during the three months ended June 30, 2022 and 2021, respectively. The awards are non-vested restricted stock units where the vesting percentages and the ultimate number of units vesting will be measured 50% based on the relative total shareholder return ("rTSR") of the Company's common stock as compared to the rTSR of peer companies, as identified in the grant agreements, over a three-year period, and 50% based on the rTSR of the Company's common stock as compared to the rTSR of the MSCI US REIT Index over a three year measurement period. Vesting percentages range from 0% to 200% with a target of 100%. rTSR means the percentage appreciation in the fair market value of one share over the three year measurement period beginning on the date of grant, assuming the reinvestment of dividends on the ex-dividend date. The target number of units is based on achieving a rTSR equal to the 55th percentile of the peer companies and MSCI US REIT Index. Dividends accrue during the measurement period and will be paid on the PRSUs ultimately earned at the end of the measurement period in either cash or common stock, at the direction of the Board's Compensation Committee. The grant date fair value of the PRSUs was measured using a Monte Carlo simulation model based on assumptions including share price volatility.

The following tables present information about the Company's PRSUs:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except recognition period)	2022		2021		2022		2021
Compensation cost	$	504	$	223	$	823	$	297


	June 30, 2022		December 31, 2021
Unamortized value of PRSUs	$	4,490	$	1,931
Weighted average amortization period (in years)		2.3		2.2

The following table presents information about the Company's PRSU activity:


	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares		Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		232		$	26.25		110	$	24.40
Granted		—			—		—		—
Vested		—			—		—		—
Forfeited		(1	)		27.93		—		—
Unvested at end of period		231			26.25		110		24.40


	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		110		$	24.40		—		$	—
Granted		122			27.93		132			24.40
Vested		—			—		—			—
Forfeited		(1	)		27.93		(22	)		24.40
Unvested at end of period		231			26.25		110			24.40