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Noncontrolling Interest

6 Months Ended

Jun. 30, 2026

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Noncontrolling Interest

Noncontrolling Interest in Operating Partnership

The following table summarizes the activity for noncontrolling interest in the Operating Partnership during the six months ended June 30, 2026.

Noncontrolling Interest						LTIP Units						Other Common Units						Total Noncontrolling Common Units						Noncontrolling Interest
Balance at December 31, 2025						2,373,111						1,416,596						3,789,707						1.9		%
Granted/Issued						358,885						—						358,885
Forfeited						—						—						—
Conversions from LTIP units to Other Common Units						(206,066)						206,066						—
Redemptions from Other Common Units to common stock						—						(206,066)						(206,066)
Balance at June 30, 2026						2,525,930						1,416,596						3,942,526						2.0		%

The Company granted LTIP units under the 2011 Plan on January 8, 2026 to non-employee, independent directors, which vest in equal quarterly installments over one year, with the first vesting date having been March 31, 2026, subject to the recipient’s continued service.

The Company granted LTIP units under the 2011 Plan on January 8, 2026 to certain executive officers and senior employees of the Company, which will vest in equal quarterly installments over four years, with the first vesting date having been March 31, 2026, subject to the recipient’s continued employment.

The fair value of the LTIP units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and non-recurring fair value measurements. The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching a three-year time period.

The following table summarizes the assumptions used in valuing such LTIP units granted during the six months ended June 30, 2026.

LTIP Units
Grant date						January 8, 2026
Expected term (years)						10
Expected stock price volatility						22.0		%
Expected dividend yield						4.0		%
Risk-free interest rate						3.56		%
Fair value of LTIP units at issuance (in thousands)						$	5,210
LTIP units at issuance						146,268
Fair value unit price per LTIP unit at issuance						$	35.62

The following table summarizes activity related to the Company’s unvested LTIP units during the six months ended June 30, 2026.

Unvested LTIP Units						LTIP Units						Weighted Average Grant Date Fair Value per Unit
Balance at December 31, 2025						166,252						$	33.39
Granted						358,885						$	35.62
Vested						(285,818)						$	35.33
Forfeited						—						$	—
Balance at June 30, 2026						239,319						$	34.41

The unrecognized compensation expense associated with the Company’s LTIP units at June 30, 2026 was approximately $7.5 million and is expected to be recognized over a weighted average period of approximately 2.3 years.

Noncontrolling Interest in Joint Ventures

At June 30, 2026, the Company held a 97.5% interest in a joint venture located in Reno, Nevada, a 95.4% interest in a joint venture located in Concord, North Carolina, and a 97.4% interest in a joint venture located in Shepherdsville, Kentucky. The third-parties’ equity interest in these joint ventures, totaling approximately $4.0 million at June 30, 2026, is included in noncontrolling interest in joint ventures on the accompanying Consolidated Balance Sheets.

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- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/810/tableOfContent

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- References

No definition available.

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