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SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Common Stock Dividend Distribution
During the years ended December 31, 2021 and 2020, the Company declared an aggregate of $0.90 and $0.88 per share in cash dividends, respectively.
Stock Based Compensation

In 2020, the Company's board of directors adopted and the stockholders' approved the 2020 Incentive Plan (the "2020 Plan"). This plan permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance shares awards and any one or more of the foregoing, up to a maximum of 1,000,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units and certain performance based awards.

Each of the Company's 2018 Incentive Plan (the "2018 Plan") and the Amended and Restated 2016 Incentive Plan (the "2016 Plan") authorized the Company to grant up to 600,000 shares of common stock pursuant to the same type of awards available under the 2020 Plan. No further awards may be granted pursuant to the 2018 Plan or the 2016 Plan, which are referred to collectively as the "Prior Plans."
NOTE 10—STOCKHOLDERS' EQUITY (Continued)
Restricted Stock Units

In March 2021, pursuant to the 2020 Plan, the Company issued restricted stock units (the "RSUs") to acquire up to 210,375 shares of common stock. The RSUs entitle the recipients, subject to continued service through March 31, 2024 (the "Performance Period"), to receive in the aggregate (i) up to 93,500 shares (the "TSR Award") of common stock based on achieving, during the Performance Period, specified levels in compounded annual growth rate ("CAGR") in total stockholder return (“TSR”), and (ii) up to 93,500 shares of common stock based on achieving, during the Performance Period, specified levels in CAGR in adjusted funds from operations (the "AFFO Award"), in each case as determined pursuant to the performance agreement. In addition, up to 23,375 shares (the "Adjustment Award") may be added to or subtracted from the TSR Award, based on attaining or failing to attain, as the case may be, during the Performance Period, of CAGR in TSR relative to the CAGR in TSR for the REITs that comprise, with specified exceptions, the FTSE NAREIT Equity Apartment  Index. The recipients also receive dividend equivalent rights entitling them to receive cash dividends with respect to the shares of common stock underlying their RSUs as if the underlying shares were outstanding during the Performance Period, if, when, and to the extent, the related RSUs vest. The shares underlying the RSU's are not participating securities but are contingently issuable shares.
For the TSR Awards, a third party appraiser prepared a Monte Carlo simulation pricing model to assist management in determining fair value. In preparing its simulation, the appraiser assumed an estimated life of three years, a dividend rate of 4.93%, a risk free interest rate ranging from 0.02% to 0.34% and an expected price volatility ranging from 47.19% to 59.01%. For the AFFO Awards, fair value is based on the market value on the date of grant. Expense is not recognized on RSUs which the Company does not expect to vest because the performance conditions are not expected to be satisfied. Performance assumptions are re-evaluated quarterly. The total amount recorded at the grant date as deferred compensation with respect to the RSUs was $1,995,000.

In June 2016, the Company issued RSUs to acquire up to 450,000 shares shares of common stock, pursuant to the 2016 Plan. In 2021, it was determined that the market conditions with respect to 250,000 shares underlying RSU's issued under the 2016 Plan had been satisfied; such shares with an aggregate market value of $4,200,000 as of the measurement date, were issued and an aggregate of $775,000 of RSU dividend equivalents were paid. It was also determined that the performance conditions with respect to 200,000 shares underlying RSU's under the 2016 Plan had not been satisfied and accordingly, the 200,000 RSU's did not vest.

The Company recorded $620,000 and $140,000 of compensation expense related to the amortization of unearned compensation with respect to the RSUs in the year ended December 31, 2021 and 2020 respectively. At December 31, 2021 and 2020, $2,248,000 and $37,000 had been deferred as unearned compensation and is to be charged to expense over the balance of the applicable performance period.

Restricted Stock
In January 2021 and June 2021, the Company granted 156,774 shares and 160,000 shares, respectively, of restricted stock pursuant to the 2020 Plan. As of December 31, 2021, an aggregate of 922,619 shares of unvested restricted stock are outstanding pursuant to the Plan and the Prior Plans. The shares of restricted stock vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the basic and diluted earnings per share computation. During the years ended December 31, 2021 and 2020, the Company recorded $2,321,000 and $1,681,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At December 31, 2021 and 2020, $7,332,000 and $4,411,000, respectively, has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average vesting period of these restricted shares is 2.8 years. Subsequent to December 31, 2021, the Company granted 158,973 shares of restricted stock pursuant to the 2020 Plan. Changes in the number of restricted shares outstanding under the Company's equity incentive plans are shown below:
NOTE 10—STOCKHOLDERS' EQUITY (Continued)
Year Ended December 31,
20212020
Outstanding at beginning of the year744,145 725,296 
Issued316,774 158,299 
Cancelled(950)— 
Vested(137,350)(139,450)
Outstanding at the end of the year922,619 744,145 

The following table reflects the compensation expense recorded for all incentive plans (dollars in thousands):
Year Ended December 31,
20212020
Restricted stock grants$2,321 $1,681 
Restricted stock units620 140 
  Total compensation$2,941 $1,821 

Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands):
Year Ended December 31,
20212020
Numerator for basic and diluted earnings per share:
Net income (loss)$29,250 $(19,732)
Deduct (earnings) attributable to non-controlling interests(136)(130)
Deduct (earnings) loss allocated to unvested restricted stock(1,412)1,520 
Net income (loss) available for common stockholders: basic and diluted$27,702 $(18,342)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding17,017,690 17,115,697 
Effect of dilutive securities:
RSUs (1)66,952 — 
Denominator for diluted earnings per share:
Weighted average number of shares17,084,642 17,115,697 
Earnings (loss) per common share, basic$1.63 $(1.16)
Earnings (loss) per common share, diluted$1.62 $(1.16)
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(1) For the year ended December 31, 2020, excludes the shares underlying RSUs as their effect would have been anti-dilutive.
NOTE 10—STOCKHOLDERS' EQUITY (Continued)
Equity Distribution Agreements
The following table reflects the sale of shares pursuant to the equity distribution agreements entered into on November 26, 2019, as amended, with three sales agents in an at-the-market offering (dollars in thousands):
Number of Shares SoldAverage PriceGross ProceedsCommissions and FeesNet ProceedsDollar Value of Shares Sold
Aggregate amount available under agreement$30,000 
2019111,963$18.06 $2,022 $31 $1,991 (2,022)
2020694,298$17.71 12,293 185$12,108 (12,293)
2021529,126$18.479,772 147$9,625 (9,772)
1,335,387$24,087 $363 $23,724 
Remaining amount available under agreement:$5,913 
Subsequent to year end, the Company sold an additional 200,000 shares and received net proceeds of $2,173,000.

Stock Buyback
Effective as of October 1, 2019, the Board of Directors authorized the Company to purchase up to $5,000,000 of shares of common stock through September 30, 2021. During the year ended December 31, 2020, the Company repurchased 39,093 shares of common stock , at an average market price of $15.76 for an aggregate cost of $616,000. No other shares were repurchased under this authorization.
On September 13, 2021, the Board of Directors approved a stock purchase plan authorizing the Company, effective as of October 1, 2021, to repurchase up to $5,000,000 of shares of common stock through December 31, 2023. During the year ended December 31, 2021, the Company did not repurchase any shares of common stock.