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Equity Incentive Plan
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plan Equity Incentive Plan
On January 8, 2026, the compensation committee of the board of directors approved and the Company granted performance units under the 2011 Plan to the executive officers and certain key employees of the Company. The terms of the performance units granted on January 8, 2026 are substantially the same as the 2025 performance units, except that the measuring period commenced on January 1, 2026 and ends on December 31, 2028.

The fair value of the performance 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 performance units is 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 the three-year performance period. The performance unit equity compensation expense is recognized ratably from the grant date into earnings over the vesting period.

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

Performance Units
Grant dateJanuary 8, 2026
Expected stock price volatility21.8 %
Expected dividend yield4.0 %
Risk-free interest rate3.5586 %
Fair value of performance units grant (in thousands)$7,241 

The unrecognized compensation expense associated with the Company’s performance units at June 30, 2026 was approximately $10.6 million and is expected to be recognized over a weighted average period of approximately 2.0 years.
Non-cash Compensation Expense

The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, and the Company’s director compensation for the three and six months ended June 30, 2026 and 2025.

 Three months ended June 30,Six months ended June 30,
Non-Cash Compensation Expense (in thousands)2026202520262025
Restricted shares of common stock$292 $412 $584 $806 
LTIP units1,301 1,109 2,618 2,217 
Performance units1,722 1,537 3,378 3,019 
Director compensation(1)
206 

190 403 388 
Total non-cash compensation expense$3,521 $3,248 $6,983 $6,430 
(1)All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2026 and 2025. The number of shares of common stock granted was calculated based on the trailing ten-day average common stock price on the third business day preceding the grant date.