Share and Unit-Based Plans

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share and Unit-Based Plans:

Under the Long-Term Incentive Plan ("LTIP"), each award recipient is issued a form of units ("LTIP Units") in the Operating Partnership. Upon the occurrence of specified events and subject to the satisfaction of applicable vesting conditions, LTIP Units (after conversion into OP Units) are ultimately redeemable for common stock of the Company, or cash at the Company's option, on a one-unit for one-share basis. LTIP Units receive cash dividends based on the dividend amount paid on the common stock of the Company. The LTIP may include both market-indexed awards and service-based awards.

The market-indexed LTIP Units vest over the service period of the award based on certain performance conditions of the Company and on the percentile ranking of the Company in terms of total return to stockholders (the "Total Return") per share of common stock relative to the Total Return of a group of peer REITs, as measured at the end of the measurement period.

During the three months ended March 31, 2021, the Company granted the following LTIP Units:

Grant Date

Units

Type

Fair Value per LTIP Unit

Vest Date

1/1/2021

576,378

Service-based

10.67

12/31/2023

1/1/2021

1,005,073

Market-indexed

9.85

12/31/2023

1,581,451

The fair value of the market-indexed LTIP Units (Level 3) granted on January 1, 2021 was estimated on the date of grant using a Monte Carlo Simulation model that assumed a risk-free interest rate of 0.17% and an expected volatility of 62.82%.

The following table summarizes the activity of the non-vested LTIP Units, phantom stock units and stock units:


	LTIP Units			Phantom Stock Units		Stock Units
	Units	Value(1)			Units	Value(1)		Units	Value(1)
Balance at January 1, 2021	784,052	$	28.11		4,662	$	35.35	309,845	$	21.47
Granted	1,581,451	10.15			14,566	10.96		92,057	13.43
Vested	(16,467)	29.86			(5,691)	16.33		(72,407)	34.41
Forfeited	—	—			—	—		(987)	22.12
Balance at March 31, 2021	2,349,036	$	16.01		13,537	$	17.10	328,508	$	16.36


(1) Value represents the weighted average grant date fair value.

The following table summarizes the activity of the stock options outstanding:


	Stock Options
		Units	Value(1)
Balance at January 1, 2021		37,515	$	54.34
Granted		—	—
Exercised		—	—

Balance at March 31, 2021		37,515	$	54.34


(1) Value represents the weighted average exercise price.

The following summarizes the compensation cost under the share and unit-based plans:


	For the Three Months Ended March 31,
		2021		2020
LTIP Units		$	3,611	$	3,214

Stock units		1,327		2,202
Stock options		—		—

Phantom stock units		93		187
		$	5,031	$	5,603

The Company capitalized share and unit-based compensation costs of $1,001 and $1,379 for the three months ended March 31, 2021 and 2020, respectively. Unrecognized compensation costs of share and unit-based plans at March 31, 2021 consisted of $15,446 from LTIP Units, $2,145 from stock units and $232 from phantom stock units.