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SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Common Stock Dividend Distribution
During the years ended December 31, 2022 and 2021, the Company declared an aggregate of $0.98 and $0.90 per share in cash dividends, respectively.
Stock Based Compensation

In 2022, the Company's board of directors adopted and the stockholders' approved the 2022 Incentive Plan (the "2022 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 2020 Incentive Plan (the "2020 Plan") and the Amended and Restated 2018 Incentive Plan (the "2018 Plan") authorized the Company to grant up to 1,000,000 shares of common stock pursuant to the same type of awards available under the 2022 Plan. No further awards may be granted pursuant to the 2020 Plan or the 2018 Plan, which are referred to collectively as the "Prior Plans."

Restricted Stock Units
In each of March 2021 (pursuant to the 2020 Plan) and June 2022 (pursuant to the 2022 Plan), the Company issued restricted stock units (the "RSUs") to acquire up to 210,375 and 212,470 shares of common stock respectively. The RSUs granted in each of 2021 and 2022 entitle the recipients, subject to continued service during the applicable performance period to
NOTE 10—STOCKHOLDERS' EQUITY (continued)
(i) up to 93,500 and 94,431 and shares of common stock, respectively, (the "TSR Award"), based on achieving, during the three-year performance period, specified levels in compounded annual growth rate ("CAGR") in total stockholder return (“TSR”), and (ii) up to 93,500 and 94,431 shares of common stock based, respectively, on achieving, during the measurement period, specified levels in CAGR in adjusted funds from operations (the "AFFO Award"), in each case as determined pursuant to the award agreement. In addition, with respect to each of the RSUs granted in 2021 and 2022, up to 23,375 and 23,608 shares, respectively, (the "Peer Group Adjustment") may be added to or subtracted from the TSR Award, based on attaining or failing to attain, as the case may be, during the applicable performance period, of CAGR in TSR for the REITs that comprise, with specified exceptions, the FTSE NAREIT Equity Apartment  Index.

The RSU recipients also received 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 applicable 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. The Monte Carlo valuation consisted of computing the grant date fair value of the awards using the Company's simulated stock price. For these TSR awards, the per unit of share fair value was estimated using the following assumptions:
 Award YearExpected Life ( yrs)Dividend RateRisk-Free Interest RateExpected Price Volatility
202234.57%2.23%to3.11%35.60%to47.40%
202134.93%0.02%to0.34%47.19%to59.01%

For the AFFO Awards granted in 2022 and 2021, 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 granted in 2022 and 2021 was $2,068,000 and $1,995,000 respectively.

In June 2016, the Company issued RSUs to acquire up to 450,000 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 $1,508,000 and $620,000 of compensation expense related to the amortization of unearned compensation with respect to the RSUs in the year ended December 31, 2022 and 2021 respectively. At December 31, 2022 and 2021, $4,269,000 and $2,248,000 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 2022, June 2021 and January 2021, the Company granted 158,973, 160,000 and 156,774 shares, respectively, of restricted stock pursuant to the 2020 Plan. As of December 31, 2022, an aggregate of 934,092 shares of unvested restricted stock are outstanding pursuant to 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, 2022 and 2021, the Company recorded $2,978,000 and $2,321,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At December 31, 2022 and 2021, $7,728,000 and $7,332,000, 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 the 934,092 restricted shares is 2.3 years. Subsequent to
NOTE 10—STOCKHOLDERS' EQUITY (continued)
December 31, 2022, the Company granted 163,974 shares of restricted stock pursuant to the 2022 Plan. Changes in the number of restricted shares outstanding under the Company's equity incentive plans are shown below:
Year Ended December 31,
20222021
Outstanding at beginning of the year922,619 744,145 
Issued158,973 316,774 
Cancelled(250)(950)
Vested(147,250)(137,350)
Outstanding at the end of the year934,092 922,619 

The following table reflects the compensation expense recorded for all incentive plans (dollars in thousands):
Year Ended December 31,
20222021
Restricted stock grants$2,978 $2,321 
Restricted stock units1,508 620 
  Total compensation$4,486 $2,941 

Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands):
Year Ended December 31,
20222021
Numerator for basic and diluted earnings per share:
Net income$50,099 $29,250 
Deduct (earnings) attributable to non-controlling interests(144)(136)
Deduct (earnings) allocated to unvested restricted stock(2,472)(1,412)
Net income available for common stockholders: basic and diluted$47,483 $27,702 
Denominator for basic earnings per share:
Weighted average number of common shares outstanding17,793,035 17,017,690 
Effect of dilutive securities:
RSUs59,916 66,952 
Denominator for diluted earnings per share:
Weighted average number of shares17,852,951 17,084,642 
Earnings per common share, basic$2.67 $1.63 
Earnings per common share, diluted$2.66 $1.62 
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 March 18, 2022, 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 agreements$40,000 
2022 (a)347,815$22.62 $7,870 $98 $7,772 (7,870)
347,815$7,870 $98 $7,772 
Remaining amount available under agreements:$32,130 
____________________________
(a) Subsequent to March 17, 2022.

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 agreements$30,000 
2019111,963$18.06 $2,022 $31 $1,991 (2,022)
2020694,29817.71 12,293 185$12,108 (12,293)
2021529,12618.479,771 147$9,624 (9,771)
2022 (a)100,00022.06 2,206 33 $2,173 (2,206)
1,435,387$26,292 $396 $25,896 
Remaining amount not available under agreements (b):$3,708 
____________________________
(a) Through March 17, 2022.
(b) The amount remaining was no longer available after March 17, 2022.

Stock Buyback
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 years ended December 31, 2022 and 2021, the Company did not repurchase any shares of common stock.
Dividend Reinvestment Plan
The Dividend Reinvestment Plan (the “DRP”), among other things, provides stockholders with the opportunity to reinvest all or a portion of their cash dividends paid on the Company’s common stock in additional shares of its common stock, at a discount, determined in the Company’s sole discretion, of up to 5% from the market price for the common stock (as such price is calculated pursuant to the DRP). The discount from the market price is currently 3%. The DRP is effective with the dividend paid on July 8, 2022. In the year ended December 31, 2022, the Company issued 62,360 shares in lieu of cash dividends of $1,279,000.