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Incentive Plans | 9 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Incentive Plans | 16. Incentive Plans The Company has an Equity Participation Plan (as amended and/or restated, the “Equity Plan”), which provides for a maximum of 10,000,000 shares of the Company’s common stock to be reserved for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, LTIP Units, stock payments and deferred stock awards. At September 30, 2024, the Company ha d 3.0 million shares o f common stock available for issuance under the Equity Plan. The Company accounts for equity awards in accordance with FASB’s compensation – Stock Compensation guidance, which requires that all share-based payments to employees, including grants of employee stock options, restricted stock, performance shares and LTIP Units, be recognized in the Condensed Consolidated Statements of Income over the service period based on their fair values. Fair value of performance awards is determined using the Monte Carlo method, which is intended to estimate the fair value of the awards at the grant date. Fair value of restricted shares is calculated based on the price on the date of grant. The Company recognized expenses associated with its equity awards o f $26.4 million and $25.3 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, the Company had $54.5 million of total unrecognized compensation cost related to unvested stock compensation granted under the Plans. That cost is expected to be recognized over a weighted-average period of approximately 2.8 years. Restricted Stock Information with respect to restricted stock under the Plan for the nine months ended September 30, 2024 and 2023 is as follows:
|  | Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |
Restricted stock outstanding as of January 1, |  |  | 2,746,116 |  |  |  | 2,632,340 |
Granted (1) |  |  | 872,150 |  |  |  | 893,880 |
Vested |  |  | (762,784 | ) |  |  | (761,154 | )
Forfeited |  |  | (23,464 | ) |  |  | (11,978 | )
Restricted stock outstanding as of September 30, |  |  | 2,832,018 |  |  |  | 2,753,088 |
(1) Th e weighted-average grant date fair value for restricted stock issued during the nine months ended September 30, 2024 and 2023 was $19.47 and $21.30, respectively. Performance Shares Information with respect to performance share awards under the Plan for the nine months ended September 30, 2024 and 2023 is as follows:
|  | Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |
Performance share awards outstanding as of January 1, |  |  | 989,860 |  |  |  | 1,004,040 |
Granted (1) |  |  | 377,690 |  |  |  | 531,200 |
Vested (2) |  |  | (458,660 | ) |  |  | (545,380 | )
Performance share awards outstanding as of September 30, |  |  | 908,890 |  |  |  | 989,860 |
(1) The weighted-average grant date fair value for performance shares issued during the nine months ended September 30, 2024 and 2023 was $18.14 and $42.61, respectively. (2) For the nine months ended September 30, 2024 and 2023, the corresponding common stock equivalent of these vested awards was 970,232 and 998,238 shares, respectively. The significant assumptions underlying the determination of fair values using Monte Carlo simulations for these performance awards granted during 2024 and 2023 were as follows:
|  | 2024 |  |  | 2023 |
Stock price |  |  | 19.53 |  |  |  | 21.30 |
Dividend yield (1) |  |  | - |  |  |  | - |
Risk-free interest rate |  |  | 4.39 | % |  |  | 4.38 | %
Volatility (2) |  |  | 28.85 | % |  |  | 44.89 | %
Term of the award (years) |  |  | 2.87 |  |  |  | 2.87 |
(1) Total Shareholder Returns, as used in the performance share awards computation, are measured based on cumulative dividend stock prices, as such a zero percent dividend yield is utilized. (2) Volatility is based on the annualized standard deviation of the daily logarithmic returns on dividend-adjusted closing prices over the look-back period based on the term of the award. Time-Based LTIP Units During the nine months ended September 30, 2024, the Company granted to certain employees and directo rs 120,700 LTIP Units with time-based vesting requirements (“Time-Based LTIP Units”) and a weighted average grant-date fair value of $19.47 per unit that vest ratably over five years subject to continued employment. Compensation expense for these units is being recognized over a five-year period. The aggregate grant-date fair value of the Time-Based LTIP Units for the nine months ended September 30, 2024 was $2.4 million. G ranted Time-Based LTIP Units do not have redemption rights, but any OP Units into which units are converted are entitled to redemption rights. The Time-Based LTIPs were valued based on the Company’s closing common share price on the date of grant. Performance-Based LTIP Units During the nine months ended September 30, 2024, the Company granted to certain employe es 205,440 LTIP Units with performance-based vesting requirements (“Performance-Based LTIP Units”) and a weighted average grant-date fair value of $18.14 per unit. Performance-Based LTIP Units are performance-based equity compensation pursuant to which participants have the opportunity to earn LTIP Units based on the total shareholder return of the Company’s common shares relative to its peers, as defined, or based on other performance criteria as determined by the Board of Directors, over the defined performance period. Any Performance-Based LTIP Units that are earned vest at the end of the three-year performance period. Compensation expense for these units is recognized over the performance period. The aggregate grant-date fair value of the Performance-Based LTIP Units for the nine months ended September 30, 2024 was $3.7 million, valued using Monte Carlo simulations based on the following significant assumptions:
|  | 2024 |
Stock price |  |  | 19.53 |
Dividend yield (1) |  |  | - |
Risk-free interest rate |  |  | 4.39 | %
Volatility (2) |  |  | 28.85 | %
Term of the award (years) |  |  | 2.87 |
(1) Total Shareholder Returns, as used in the performance share awards computation, are measured based on cumulative dividend stock prices, as such a zero percent dividend yield is utilized. (2) Volatility is based on the annualized standard deviation of the daily logarithmic returns on dividend-adjusted closing prices over the look-back period based on the term of the award.

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