XML 30 R13.htm IDEA: XBRL DOCUMENT v3.24.2
Shareholders' Equity and Share-Based Compensation (Notes)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Shareholders' Equity and Share-based Compensation SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION
Preferred Stock. The Company’s Board of Directors has designated 6,600,000 shares of the Company’s preferred stock for issuance as Series C Preferred Stock, of which the Company has 4,460,000 of such shares outstanding as of June 30, 2024. The Series C Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption, and will remain outstanding indefinitely unless redeemed, repurchased, or converted into common stock pursuant to the terms of the Series C Preferred Stock. Except under certain limited circumstances
described in Article IIIC of the Company’s Restated Articles of Incorporation, the Company may not redeem the Series C Preferred Stock prior to April 15, 2025. On or after that date, the Series C Preferred Stock may be redeemed at any time and from time to time at the Company's option at a cash redemption price of $25.00 per share plus any accumulated and unpaid dividends. Because the Series C Preferred Stock is redeemable only at the option of the issuer, it is classified as equity on the Company’s consolidated balance sheet.

The Series C Preferred Stock pays a cumulative cash dividend equivalent to 6.900% of the $25.00 liquidation preference per share each year until April 15, 2025. The terms of the Series C Preferred Stock state that upon April 15, 2025 and thereafter, the Company will pay cumulative cash dividends at a percentage of the $25.00 liquidation value per share equal to an annual floating rate of 3-month LIBOR plus a spread of 5.461%. When 3-month LIBOR ceases to be a published, the fallback provision provided in the terms of the Series C Preferred Stock will allow for the Company to appoint a third-party independent financial institution of national standing to select an industry accepted alternative base rate. The Company paid its regular quarterly dividend of $0.43125 per share of Series C Preferred Stock on July 15, 2024 to shareholders of record as of July 1, 2024.

Common Stock. During the six months ended June 30, 2024, the Company issued 10,500,000 shares of its common stock through a public offering, resulting in proceeds of $124.5 million, net of issuance costs, and issued 7,016,225 shares of its common stock through its at-the-market (“ATM”) program at an aggregate value of $86.9 million, net of broker commissions and fees. The Company declared common dividends of $0.39 on its common stock for the three months ended June 30, 2024. The Company’s timing, frequency, and amount of dividends declared on its common stock are determined by its Board of Directors. When declaring dividends, the Board of Directors considers the Company’s taxable income, the REIT distribution requirements of the Tax Code, and maintaining compliance with dividend requirements of the Series C Preferred Stock, along with other factors that the Board of Directors may deem relevant from time to time.
Share-Based Compensation. The following table presents a rollforward of share-based awards for the periods indicated:
Six Months Ended
June 30,
 20242023
Type of AwardShares
Weighted Average
Grant Date
Fair Value
 Per Share
Shares
Weighted Average
Grant Date
Fair Value
 Per Share
Restricted stock:
Awards outstanding, beginning of period104,282 $12.61 133,951 $15.22 
Granted65,668 12.56 74,017 11.27 
Vested(76,355)12.37 (36,573)16.75 
Awards outstanding, end of period93,595 $12.78 171,395 $13.19 
Target RSUs: (1)
Awards outstanding, beginning of period394,497 $13.06 86,666 $16.57 
Granted214,755 12.50 106,850 11.97 
Vested(68,896)14.42 (33,213)16.96 
Awards outstanding, end of period540,356 $12.66 160,303 $13.42 
Target PSUs: (2)
Awards outstanding, beginning of period276,866 $13.17 201,284 $16.60 
Granted322,132 12.50 160,277 11.97 
Vested— — — — 
Awards outstanding, end of period598,998 $12.81 361,561 $16.60 
(1)The number of RSUs shown represent the target number of awards. Actual number of shares that will potentially settle may range from 0% if the recipient’s service-based vesting condition is not met to 100% if the service-based vesting condition is met.
(2)The number of PSUs shown represent the target number of awards. Actual number of shares that will potentially settle may range from 0% to 200% based on the achievement of the performance goals defined in each grant award.

As of June 30, 2024, the Company expects 95% of the remaining target PSUs will be settled on their vesting dates.

The Company has DERs accrued for RSUs and PSUs of $0.6 million and $0.8 million, respectively, as of June 30, 2024 compared to $0.4 million and $0.8 million, respectively, as of December 31, 2023, which is included on the Company’s consolidated balance sheet within “accrued dividends payable.”

Total share-based compensation expense recognized by the Company for the three and six months ended June 30, 2024 was $0.9 million and $5.2 million compared to $1.1 million and $2.1 million for the three and six months ended June 30, 2023. The increase in share-based compensation for the three and six months ended June 30, 2024 is due to accelerated recognition of expense for certain stock incentive awards granted in March 2024 to
retirement eligible employees. The following table discloses the Company’s remaining compensation expense related to stock awards it has granted as of June 30, 2024, which will be amortized over the period disclosed:
June 30, 2024
($s in thousands)
Remaining Compensation CostWAVG Period of Recognition
Restricted stock$975 1.5 years
RSUs3,932 2.2 years
PSUs2,514 2.2 years
Total$7,421 2.1 years