Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company’s Amended and Restated 2013 Equity Incentive Plan, as amended June 14, 2023 (the "Equity Plan"), permits the grant of restricted stock awards, stock options, stock appreciation rights, LTIP Units, performance units, and other equity-based awards up to an aggregate of 3,400,000 shares of common stock. As of September 30, 2024, there were 1,112,489 shares available for issuance under the Equity Plan.

During the nine months ended September 30, 2024, the Company granted an aggregate of 286,868 shares of restricted stock, 170,203 LTIP Units, and 50,000 performance units to employees and non-employee directors with a weighted average grant date fair value of $10.72 per share of restricted stock, $9.65 per LTIP Unit, and $9.23 per performance unit, respectively. During the nine months ended September 30, 2024, employees surrendered 105,404 shares of stock for income tax withholdings. During the nine months ended September 30, 2024, 11,453 shares of restricted stock and 23,750 performance units were forfeited in accordance with service conditions of grants. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Executive officers' restricted shares or LTIP Units generally vest over a period of three years: two-fifths immediately on the grant date and the remaining three-fifths in equal amounts on the first three anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards or LTIP Units may vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Employee performance units generally vest over a period of six years: two-fifths on the last day of a three year performance period, and the remaining three-fifths in equal amounts on the first three anniversaries following the end of the three year performance period, subject to continued service to the Company and certain market conditions. Unvested restricted stock awards, LTIP Units, and performance units are entitled to receive distributions from their grant date.

During the three months ended September 30, 2024 and 2023, the Company recognized $1.0 million and $0.9 million, respectively, of stock-based compensation cost. During the nine months ended September 30, 2024 and 2023, the Company recognized $4.1 million and $3.3 million, respectively, of stock-based compensation cost. As of September 30, 2024, there were 280,636 unvested shares of restricted stock, 119,872 unvested LTIP Units, and 136,875 unvested performance units outstanding; the total unrecognized compensation expense related to unvested shares of restricted stock, unvested LTIP Units, and unvested performance units was $3.1 million, which the Company expects to recognize over the next 63 months.