XML 40 R20.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Long-Term Compensation | 12 Months Ended
--- | ---
Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Long-Term Compensation | Long-Term Compensation Equity Based Compensation The Company maintains a stock incentive plan which is administered by the Compensation Committee of the Board of Directors in which officers, certain employees and the Company's independent directors are eligible to participate (the "Stock Incentive Plan"). Among other forms of allowed awards, awards made under the Stock Incentive Plan during the three years ended December 31, 2023 have been in the form of restricted stock awards, restricted stock unit awards, performance share awards and RLP Units (as defined in Note 6). Special provisions apply to awards granted under the Stock Incentive Plan in the event of a change in control in the Company. As of December 31, 2023, awards covering 2.0 million shares of common stock were available to be granted under the Stock Incentive Plan. Under the Stock Incentive Plan, each RLP Unit counts as one share of common stock for purposes of calculating the limit on shares that may be issued. Awards with Performance Measures During the years ended December 31, 2023, 2022 and 2021, the Company granted 44,821, 35,867, and 58,568 performance units ("Performance Units"), respectively, to certain employees. In addition, the Company granted 280,083, 208,454 and 263,621 RLP Units, respectively, for the years ended December 31, 2023, 2022 and 2021, with the same performance-based criteria as the Performance Units ("Performance RLP Units" and, together with the Performance Units, collectively the "Performance Awards") to certain employees. A portion of each Performance Award vests based upon the total shareholder return ("TSR") of the Company's common stock compared to the TSR of the FTSE Nareit All Equity Index and the remainder vests based upon the TSR of the Company’s common stock compared to a specified group of peer industrial real estate companies. The performance period for awards issued in 2023 is three years and compensation expense is charged to earnings over the applicable vesting period for the Performance Awards. At the end of the measuring period, vested Performance Units convert into shares of common stock. The participant is also entitled to dividend equivalents for shares or RLP Units issued pursuant to vested Performance Awards. The Operating Partnership issues General Partner Units to the Company in the same amounts for vested Performance Units. The Performance Awards issued for the years ended December 31, 2023, 2022 and 2021, had fair value of $8,948, $7,266, and $7,162, respectively. The fair values were determined by a lattice-binomial option-pricing model based on Monte Carlo simulations using the following assumptions:
| Year Ended December 31, 2023 |  | Year Ended December 31, 2022 |  | Year Ended December 31, 2021
Expected dividend yield | 2.46 | % |  | 1.75 | % |  | 2.49 | %
Expected volatility - range used | 27.09% - 32.03% |  | 19.89% - 28.74% |  | 29.00% - 37.18%
Expected volatility - weighted average | 29.42 | % |  | 24.91 | % |  | 32.44 | %
Risk-free interest rate | 4.23% - 4.78% |  | 0.22% - 1.21% |  | 0.02% - 0.19%
Performance Award transactions for the year ended December 31, 2023 are summarized as follows:
| Performance Units |  | Weighted Average Grant Date Fair Value |  | Performance RLP Units |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022 | 145,081 |  |  | $ | 23.49 |  |  | 739,430 |  |  | $ | 23.78 |
Issued | 44,821 |  |  | $ | 27.54 |  |  | 280,083 |  |  | $ | 27.54 |
Forfeited | (1,031) |  |  | $ | 20.65 |  |  | (5,053) |  |  | $ | 20.65 |
Vested | (53,532) |  |  | $ | 20.65 |  |  | (262,302) |  |  | $ | 20.65 |
Outstanding at December 31, 2023 | 135,339 |  |  | $ | 25.98 |  |  | 752,158 |  |  | $ | 26.29 |
Service Based Awards During the years ended December 31, 2023, 2022 and 2021, the Company awarded 56,236, 78,482, and 67,127 of restricted stock units ("Service Units"), respectively, to certain employees and outside directors. In addition, for the years ended December 31, 2023, 2022 and 2021, the Company awarded 98,342, 57,907 and 51,525 RLP Units, respectively, ("Service RLP Units" and, together with the Service Units, collectively the "Service Awards") to certain employees and outside directors. The fair value is based on the Company's stock price on the date such awards were approved by the Compensation Committee of the Board of Directors. The Service Awards granted to employees were based on the prior achievement of certain corporate performance goals and generally vest ratably over a period of three years based on continued employment. Service Awards granted to outside directors vest after one year. The Operating Partnership issued restricted Unit awards to the Company in the same amount for the restricted stock units. Compensation expense is charged to earnings over the vesting periods for the Service Awards. At the end of the service period, vested Service Units convert into shares of common stock. The Service Awards issued for the years ended December 31, 2023, 2022 and 2021 had fair value of $7,948, $8,032 and $5,195, respectively. Service Award transactions for the year ended December 31, 2023 are summarized as follows:
| Service Units |  | Weighted Average Grant Date Fair Value |  | Service RLP Units |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022 | 143,080 |  |  | $ | 51.41 |  |  | 119,007 |  |  | $ | 51.85 |
Issued | 56,236 |  |  | $ | 53.33 |  |  | 98,342 |  |  | $ | 50.33 |
Forfeited | (2,146) |  |  | $ | 53.95 |  |  | — |  |  | $ | — |
Vested | (68,855) |  |  | $ | 48.91 |  |  | (69,788) |  |  | $ | 48.87 |
Outstanding at December 31, 2023 | 128,315 |  |  | $ | 53.55 |  |  | 147,561 |  |  | $ | 52.25 |
Compensation Expense Related to Long-Term Compensation For the years ended December 31, 2023, 2022 and 2021, we recognized $16,673, $15,722 and $13,719, respectively, in compensation expense related to Performance Awards and Service Awards. Performance Award and Service Award compensation expense capitalized in connection with development activities was $3,014, $3,605 and $2,405 for the years ended December 31, 2023, 2022 and 2021, respectively. At December 31, 2023, we had $10,379 in unrecognized compensation related to unvested Performance Awards and Service Awards. The weighted average period that the unrecognized compensation is expected to be recognized is 0.71 years. Retirement Eligibility All award agreements issued underlying Performance Awards and Service Awards contain a retirement eligibility policy for employees with at least 10 years of continuous service and that are at least 60 years old. For employees that meet the age and service eligibility requirements, their awards are non-forfeitable. As such, we expense 100% of the awards granted to retirement-eligible employees at the grant date as if fully vested. For employees who will meet the age and service eligibility requirements during the normal vesting periods, the grants are amortized over the shorter service period. Additionally, our Chief Executive Officer's employment agreement contains a retirement provision, which provides for all of his outstanding Performance Awards and Service Awards to be non-forfeitable effective December 31, 2024. As such, his Performance Awards and Service Awards granted during the year ended December 31, 2023 are amortized over two years versus three years. 401(k) Plan Under the Company's 401(k) Plan, all eligible employees may participate by making voluntary contributions, and we may make, but are not required to make, matching contributions. For the years ended December 31, 2023, 2022 and 2021, total expense related to matching contributions was $1,382, $1,314 and $1,186, respectively.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration