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Common Stock Incentive Plan | 3 Months Ended
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Mar. 31, 2022
Share-based Payment Arrangement [Abstract] |
Common Stock Incentive Plan | Common Stock Incentive Plan In March 2021, our Board of Directors adopted, and in May 2021, stockholders approved, the Realty Income 2021 Incentive Award Plan, or 2021 Plan. This note should be read in conjunction with the more complete discussion of our 2021 Plan included in note 16 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021 The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income and comprehensive income was $5.0 million and $3.7 million during the three months ended March 31, 2022, and 2021, respectively. A. Restricted Stock During the three months ended March 31, 2022, we granted 110,426 shares of common stock under the 2021 Plan. As of March 31, 2022, the remaining unamortized share-based compensation expense related to restricted stock totaled $15.1 million, which is being amortized on a straight-line basis over the service period of each applicable award. The amount of share-based compensation is based on the fair value of the stock at the grant date. We define the grant date as the date the recipient and Realty Income have a mutual understanding of the key terms and conditions of the award, and the recipient of the grant begins to benefit from, or be adversely affected by, subsequent changes in the price of the shares. B. Performance Shares and Restricted Stock Units During the three months ended March 31, 2022, we granted 154,840 performance shares, as well as dividend equivalent rights, to our executive officers. The performance shares are earned based on our Total Shareholder Return (TSR) performance relative to select industry indices and peer groups as well as achievement of certain operating metrics, and vest 50% on the first and second January 1 after the end of the three-year performance period, subject to continued service. During the three months ended March 31, 2022, we also granted 24,456 restricted stock units, all of which vest over a four-year service period. These restricted stock units have the same economic rights as shares of restricted stock. As of March 31, 2022, the remaining share-based compensation expense related to the performance shares and restricted stock units totaled $27.6 million. The fair value of the performance shares were estimated on the date of grant using a Monte Carlo Simulation model. The performance shares are being recognized on a tranche-by-tranche basis over the service period. The amount of share-based compensation for the restricted stock units is based on the fair value of our common stock at the grant date. The expense amortization period for restricted stock units is the lesser of the four-year service period or the period over which the awardee reaches the qualifying retirement age. For employees who have already met the qualifying retirement age, restricted stock units are fully expensed at the grant date. C. Stock Options We did not grant any stock options during the first three months ended March 31, 2022. During the three months ended March 31, 2022, we recorded $47,000 of expense related to stock options. There was no comparable expense for the three months ended March 31, 2021. As of March 31, 2022, there was no unamortized expense relating to our outstanding stock options.

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