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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION As of December 31, 2024, 156,341 shares were available for issuance under the Company’s 2015 Incentive Award Plan (the “Plan”). Options are exercisable once vested. Options are exercisable at such times and subject to such terms as deter mined by the Compensation Committee, but under no circumstances may be exercised if such exercise would cause a violation of the ownership limit in the Company’s charter. Options expire 10 years from the date of grant. All of the Company's remaining outstanding options were exercised during the year ended December 31, 2024. As defined under the terms of the Plan, restricted stock grants may be awarded. The stock grants are subject to a vesting period over which the restrictions are released and the stock certificates are given to the grantee. During the vesting period, the grantee is not permitted to sell, transfer, pledge, encumber or assign shares of restricted stock granted under the Plan; however, the grantee has the ability to vote the shares and receive nonforfeitable dividends paid on shares. Unless otherwise determined by the Compensation Committee at the time of grant, the forfeiture and transfer restrictions on the shares lapse over a one-year period or a four-year period beginning on the date of grant. Option Grants A summary of stock option activity is as follows:
Options | Number of Shares |  | Weighted Average Exercise Price
Outstanding at December 31, 2021 | 9,272 |  |  | $ | 82.47 |
Exercised | — |  |  | — |
Outstanding at December 31, 2022 | 9,272 |  |  | $ | 82.47 |
Exercised | — |  |  | — |
Outstanding at December 31, 2023 | 9,272 |  |  | $ | 82.47 |
Exercised | (9,272) |  |  | 82.47 |
Outstanding at December 31, 2024 | — |  |  | $ | — |
The total intrinsic value of options exercised for the years ended December 31, 2024, 2023 and 2022 was $798, $0 and $0, respectively. There have been no options granted since 2016. The Company recorded no compensation expense relating to outstanding options in general and administrative expense for the years ended December 31, 2024, 2023 and 2022. Net proceeds received for the years ended December 31, 2024, 2023 and 2022, related to option exercises was $765, $0 and $0, respectively. At December 31, 2024, there was no unrecognized compensation expense related to non-vested stock options under the Plan. Common Stock Granted to Employees and Directors The Company recorded $16,808, $14,205 and $12,086 of expense in general and administrative expense in its statement of operations related to restricted stock awards granted to employees and directors for the years ended December 31, 2024, 2023 and 2022, respectively. The forfeiture rate, which is estimated at a weighted-average of 6.4% of unvested awards outstanding as of December 31, 2024, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimates. At December 31, 2024 there was $23,044 of total unrecognized compensation expense related to non-vested restricted stock awards under the Plan. That cost is expected to be recognized over a weighted-average period of 2.15 years. The fair value of common stock awards is determined based on the closing trading price of the Company’s common stock on the grant date. A summary of the Company’s employee and director stock grant activity is as follows:
Restricted Stock Grants | Shares |  | Weighted-Average Grant-Date Fair Value
Unreleased at December 31, 2021 | 199,778 |  |  | $ | 115.16 |
Granted | 105,677 |  |  | 201.12 |
Released | (86,781) |  |  | 112.31 |
Canceled | (10,614) |  |  | 147.03 |
Unreleased at December 31, 2022 | 208,060 |  |  | $ | 158.38 |
Granted | 98,263 |  |  | 158.04 |
Released | (90,662) |  |  | 147.21 |
Canceled | (10,084) |  |  | 165.36 |
Unreleased at December 31, 2023 | 205,577 |  |  | $ | 162.81 |
Granted | 142,324 |  |  | 147.87 |
Released | (93,453) |  |  | 153.78 |
Canceled | (6,365) |  |  | 155.37 |
Unreleased at December 31, 2024 | 248,083 |  |  | $ | 157.84 |
Performance-based Stock Units The performance-based stock units (the “PSUs”) granted to executives represent the right to earn shares of the Company's common stock. These awards have two financial performance components: (1) the Company's core FFO performance (“FFO Target”), and (2) the Company's total stockholder return relative to the performance of a defined group of peers (“TSR Target”). Each of these performance components are weighted 50% and are measured over the performance period, which is defined as the three-year period ending December 31 from the year of grant. At the end of the performance period, the financial performance components are reviewed to determine the number of shares actually granted to executives, which can be as low as zero shares and up to a maximum of two shares issued for each PSU. A summary of the PSU activity is as follows:
Performance-Based Stock Units |  | Units |  | Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2021 |  | 135,408 |  |  | $ | 111.69 |
Granted |  | 61,085 |  |  | 223.96 |
Released |  | (49,334) |  |  | $ | 194.21 |
Unvested at December 31, 2022 |  | 147,159 |  |  | $ | 130.63 |
Granted |  | 86,795 |  |  | 207.28 |
Released |  | (45,242) |  |  | $ | 162.18 |
Unvested at December 31, 2023 |  | 188,712 |  |  | $ | 158.32 |
Granted |  | 115,283 |  |  | 161.82 |
Released |  | (40,832) |  |  | $ | 143.36 |
Unvested at December 31, 2024 |  | 263,163 |  |  | $ | 162.17 |
The Company recorded $12,183, $12,433 and $9,299 of expense in general and administrative expense in its statement of operations related to PSUs granted to employees for the years ended December 31, 2024, 2023 and 2022, respectively. The Company estimated the fair value of the PSUs as of the grant date, using the closing trading price of the Company's common stock on the grant date to value the FFO Target portion. A Monte Carlo simulation model was used to calculate the fair value of the TSR Target portion of the PSUs, using the following assumptions:
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Intrinsic value |  | $39,369 |  | $30,256 |  | $21,659
Risk-free rate |  | 5.5% |  | 4.6% |  | 1.8%
Volatility |  | 29.9% |  | 29.3% |  | 29.3%
Expected term (in years) |  | 2.8 |  | 2.8 |  | 2.9
Dividend yield |  | —% |  | —% |  | —%
Unrecognized compensation cost |  | $19,642 |  | $18,798 |  | $13,241
Term over which compensation cost recognized (in years) |  | 3 |  | 3 |  | 3
Under the terms of the PSUs, dividends for the entire measurement period are paid in cash when the shares are released, therefore, a dividend yield of zero was used. The valuation model applied in this calculation utilizes subjective assumptions that could potentially change over time, including the probabilities associated with achieving the FFO Targets (categorized within Level 3 of the fair value hierarchy). Therefore, the amount of unrecognized compensation expense at December 31, 2024 noted above does not necessarily represent the expense that will ultimately be realized by the Company in the statement of operations.

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