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Share-based Compensation and Non-Qualified Deferred Compensation Plan | 3 Months Ended
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Mar. 31, 2026
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Share-based Compensation and Non-Qualified Deferred Compensation Plan | 8. Share-Based Compensation Incentive Compensation. We currently maintain the 2018 Share Incentive Plan (the "2018 Share Plan"), which was approved by the Company's shareholders. The shares available for awards under the 2018 Share Plan are subject to certain other limits under the plan, generally available for any type of award authorized under the 2018 Share Plan including stock options, stock appreciation rights, restricted stock awards, performance awards, stock bonuses, and other stock-based awards. Persons eligible to receive awards under the 2018 Share Plan include subsidiaries' officers and employees, Trust Managers, and certain of our subsidiaries' consultants and advisors. A total of 9.7 million shares ("Share Limit") was authorized for grant under the 2018 Share Plan. Shares issued or to be issued are counted against the Share Limit as (1) 3.45 to 1.0 for every share award, excluding stock options and stock appreciation rights, granted, and (2) 1.0 to 1.0 for every stock option or stock appreciation right granted. As of March 31, 2026, there were approximately 2.5 million common shares available for grant under the 2018 Share Plan, which would result in approximately 0.7 million shares which could be granted pursuant to full value awards conversion ratios as defined under the 2018 Share Plan. Total share-based compensation cost charged against income was approximately $4.8 million and $4.2 million for the three months ended March 31, 2026 and 2025, respectively. Total capitalized share-based compensation costs were approximately $0.6 million and $0.9 million for the three months ended March 31, 2026 and 2025, respectively. A summary with respect to restricted share awards under our share incentive plans for the three months ended March 31, 2026 is shown below:
|  |  |  |  | Nonvested Share Awards Outstanding |  | Weighted Average Exercise / Grant Price
Nonvested share awards outstanding at December 31, 2025 |  |  |  |  | 236,669 |  |  | $ | 110.16 |
Granted |  |  |  |  | 214,855 |  |  | 108.84 |
Vested |  |  |  |  | (197,326) |  |  | 109.38 |
Forfeited |  |  |  |  | (1,290) |  |  | 110.62 |
Total nonvested share awards outstanding at March 31, 2026 |  |  |  |  | 252,908 |  |  | $ | 109.63 |
Restricted Share Awards and Vesting. Share awards for employees generally vest over three years and are valued at the market value of the shares on the grant date. In the event the holder of the share awards attains at least age 65, and with respect to an employee, also attains at least ten or more years of service ("Retirement Eligibility") before the term in which the awards are scheduled to vest, the value of the share awards to such individual is amortized from the date of grant to the individual's Retirement Eligibility date. All new share awards granted to individuals after they reach Retirement Eligibility vest on the date of grant. The weighted average fair value of share awards granted during the three months ended March 31, 2026 and 2025 was $108.84 per share and $118.90 per share, respectively. The total fair value of shares vested was approximately $21.6 million and $22.8 million during the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026, the unamortized value of previously issued unvested share awards was approximately $25.8 million which is expected to be amortized over the next three years. Performance Share Awards. In February 2026, the Company also awarded 50,927 performance share units ("PSUs") under the 2018 Share Plan to certain executive officers, all of which remain outstanding as of March 31, 2026. The PSUs vest at the end of a three‑year performance period, subject to the executive’s continued employment with the Company through the final day of the performance period (which requirement is deemed satisfied upon a qualifying event, retirement, or disability. If the executive's service ends before the vesting date due to death, the PSUs will vest as if the performance period ended on such date). Payouts may range from 0% to 200% of the target number of PSUs, based on the achievement of pre‑established market and operating performance metrics, and are settled in common shares following the completion of the performance period. We treat PSUs as equity awards, and therefore, the amount of stock-based compensation we record over the performance period is based on the respective fair values of the PSUs on the grant date. Approximately 25,463 of the PSUs are subject to market conditions based on the Company’s total shareholder return ("TSR") relative to (i) the Equity Apartment Index and (ii) the Equity REIT Index over the three‑year performance period. The Company uses a Monte Carlo valuation model to estimate the grant-date fair value for these market-based awards and will recognize compensation cost over the service period regardless of whether the TSR performance measures are met. Under this model, the simulated prices for the two indices described above are weighted to determine the grant‑date fair value per unit, which for the February 2026 awards was $120.42. The remaining 25,464 PSUs are subject to operating performance conditions based on the Company’s Net Debt to Annualized Adjusted EBITDAre (Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate) ratio and Core Funds from Operations ("Core FFO") per share over the same three‑year performance period. The fair value of the Net Debt to Annualized Adjusted EBITDAre and Core FFO per share portion of the PSUs was determined based on the closing market price of the Company's common shares on the date of grant, which was $108.84 for the February 2026 awards, and compensation cost will be recognized and adjusted at each reporting period date based on the probable outcome of the applicable performance conditions. The PSUs include dividend equivalent rights ("DERs"), pursuant to which holders receive additional PSUs for cash dividends declared on the Company’s common shares during the performance period. DERs accrue on both the original PSUs and previously credited DERs and are subject to the same vesting conditions and payout terms as the underlying PSUs.

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