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Share Incentive and Other Compensation | 9 Months Ended
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Sep. 30, 2022
Share-based Payment Arrangement [Abstract] |
Share Incentive and Other Compensation | 13. Share Incentive a nd Other Compensation Share Incentive Plan The 2020 Share Incentive Plan (the “Share Incentive Plan”) authorizes the Company to issue options, Restricted Shares, LTIP Units and other securities (collectively “Awards”) to, among others, the Company’s officers, trustees and employees. At September 30, 2022 a total of 1,551,407 shares remained available to be issued under the Share Incentive Plan. Restricted Shares and LTIP Units - Employees During the nine months ended September 30, 2022, and the year ended December 31, 2021, the Company issued 600,672 and 636,646 LTIP Units and 13,178 and 11,244 restricted share units (“Restricted Share Units”), respectively, to employees of the Company pursuant to the Share Incentive Plan. These awards were measured at their fai r value on the grant date, incorporating the following factors: • A portion of these annual equity awards is granted in performance-based Restricted Share Units or LTIP Units that may be earned based on the Company’s attainment of specified relative total shareholder returns (“Relative TSR”) hurdles. • In the event the Relative TSR percentile falls between the 25th percentile and the 50th percentile, the Relative TSR vesting percentage is determined using a straight-line linear interpolation between 50% and 100% and in the event that the Relative TSR percentile falls between the 50th percentile and 75th percentile, the Relative TSR vesting percentage is determined using a straight-line linear interpolation between 100% and 200%. • Two-thirds (2/3) of the performance-based LTIP Units will vest based on the Company’s total shareholder return (“TSR”) for the three-year forward-lo oking performance period relative to the constituents of the National Association of Real Estate Investment Trusts (“NAREIT”) Shopping Center Property Subsector and one-third (1/3) on the Company’s TSR for the three-year forward-looking performance period as compared to the constituents of the NAREIT Retail Property Sector (both on a non-weighted basis). • If the Company’s performance fails to achieve the aforementioned hurdles at the culmination of the three-year performance period, all performance-based shares will be forfeited. Any earned performance-based shares vest 60% at the end of the performance period, with the remaining 40% of shares vesting ratably over the next two years. For valuation of the 2022 and 2021 Performance Shares, a Monte Carlo simulation was used to estimate the fair values based on probability of satisfying the market conditions and the projected share prices at the time of payments, discounted to the valuation dates over the three-year performance periods. The assumptions include volatility (49.0% and 48.0%) and risk-free interest rates of (1.7% and 0.2%) for 2022 and 2021, respectively. The total value of the 2022 and 2021 Performance Shares will be expensed over the vesting period regardless of the Company’s performance. The total value of the above Restricted Share Units and LTIP Units as of the grant dat e was $13.0 million dur ing the nine months ended September 30, 2022 and $12.6 million during the year ended December 31, 2021. Total long-term incentive compensation expense, including the expense related to the Share Incentive Plan, was $1.9 million and $2.3 million for the three months ended September 30, 2022 and 2021, and $5.1 million and $7.1 million for the nine months ended September 30, 2022 and 2021, respectively and is recorded in General and administrative expense in the consolidated statements of operations. Restricted Shares and LTIP Units - Board of Trustees In addition, members of the Board have been issued shares and units under the Share Incentive Plan. During the nine months ended September 30, 2022, the Comp any issued 28,555 LTIP Units and 29,935 Restricted Share Units as compensation to the Trustees of the Company. A portion of the LTIP Units and Restricted Share Units vest over three years with 33% vesting May 9, 2023 and the remaining amount vesting ratably on May 9, 2024 and May 9, 2025. The remaining awards vest on May 9, 2023. The Restricted Shares do not carry voting rights or other rights of Common Shares until vesting and may not be transferred, assigned or pledged until the recipients have a vested non-forfeitable right to such shares. Dividends are not paid currently on unvested Restricted Shares, but are paid cumulatively from the issuance date through the applicable vesting date of such Restricted Shares. Total trustee fee expense, including the expense related to the Share Incentive P lan, was $1.2 million for each of the nine months ended September 30, 2022 and 2021, respectively, and is recorded in General and Administrative expense in the consolidated statements of operations. Long-Term Incentive Alignment Program In 2009, the Company adopted the Long-Term Incentive Alignment Program (the “Program”) pursuant to which the Company may grant awards to employees, entitling them to receive up to 25% of any potential future payments of Promote to the Operating Partnership from Funds III, IV and V. The Company has granted such awards to employees representing 25% of the potential Promote payments from Fund III to the Operating Partnership, 23.1% of the potential Promote payments from Fund IV to the Operating Partnership and 10.7% of the potential Promote payments from Fund V to the Operating Partnership. Payments to senior executives under the Program require further Board approval at the time any potential payments are due pursuant to these grants. Compensation relating to these awards will be recognized in each reporting period in which Board approval is granted. As payments to other employees are not subject to further Board approval, compensation relating to these awards will be recorded based on the estimated fair value at each reporting period in accordance with ASC Topic 718, Compensation– Stock Compensation. The awards in connection with Fund IV were determined to have no intrinsic value as of September 30, 2022 or December 31, 2021. The Company recognized $0.4 million and $0.1 million of compensation expense for Funds III and V, respectively for the nine months ended September 30, 2022 related to the Program in connection with the resignation of an employee. No compensation expense was recognized for the year ended December 31, 2021 related to the Program. A summary of the status of the Company’s unvested Restricted Shares and LTIP Units is presented below:
Unvested Restricted Shares and LTIP Units |  | Common Restricted Shares |  |  | Weighted Grant-Date Fair Value |  |  | LTIP Units |  |  | Weighted Grant-Date Fair Value |
Unvested at December 31, 2020 |  |  | 89,911 |  |  | $ | 15.42 |  |  |  | 1,122,889 |  |  | $ | 24.38 |
Granted |  |  | 43,078 |  |  |  | 19.94 |  |  |  | 666,967 |  |  |  | 19.48 |
Vested |  |  | (43,084 | ) |  |  | 16.85 |  |  |  | (283,024 | ) |  |  | 26.66 |
Forfeited |  |  | (159 | ) |  |  | 36.22 |  |  |  | (91,637 | ) |  |  | 36.22 |
Unvested at December 31, 2021 |  |  | 89,746 |  |  |  | 16.87 |  |  |  | 1,415,195 |  |  |  | 20.85 |
Granted |  |  | 43,113 |  |  |  | 21.36 |  |  |  | 629,227 |  |  |  | 21.16 |
Vested |  |  | (38,194 | ) |  |  | 20.10 |  |  |  | (308,608 | ) |  |  | 22.88 |
Forfeited |  |  | (1,930 | ) |  |  | 31.82 |  |  |  | (278,332 | ) |  |  | 31.16 |
Unvested at September 30, 2022 |  |  | 92,735 |  |  | $ | 17.31 |  |  |  | 1,457,482 |  |  | $ | 18.59 |
The weighted-average grant date fair value for Restricted Shares and LTIP Units granted for the nine months ended September 30, 2022 and the year ended December 31, 2021 w ere $21.17 and $19.51, respec tively. As of September 30, 2022, there wa s $18.2 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Share Incentiv e Plan. That cost is expected to be recognized over a weighted-average peri od of 1.6 years. The to tal fair value of Restricted Shares that vested during the nine months ended September 30, 2022 and the year ended December 31, 2021, w as $0.8 million and $0.8 million, re spectively. The total fair value of LTIP Units that vested (LTIP units vest primarily during the first quarter) during the nine months ended September 30, 2022 and the year ended December 31, 2021, w as $7.1 million and $7.5 million, resp ectively. Other Plans On a combined basis, the Company incurred a total of $0.4 million and $0.3 million of compensation expense relate d to the following employee benefit plans for the nine months ended September 30, 2022 and 2021, respectively. Employee Share Purchase Plan The Acadia Realty Trust Employee Share Purchase Plan (the “Purchase Plan”), allows eligible employees of the Company to purchase Common Shares through payroll deductions. The Purchase Plan provides for employees to purchase Common Shares on a quarterly basis at a 15% discount to the closing price of the Company’s Common Shares on either the first day or the last day of the quarter, whichever is lower. A participant may not purchase more than $25,000 in Common Shares per year. Compensation expense will be recognized by the Company to the extent of the above discount to the closing price of the Common Shares with respect to the applicable quarter. A total of 6,188 and 6,111 Common Shares were purchased by employees under the Purchase Plan for the nine months ended September 30, 2022 and 2021, respectively. Deferred Share Plan The Company maintains a Trustee Deferral and Distribution Election program, under which the participating Trustees earn deferred compensation. Employee 401(k) Plan The Company maintains a 401(k) plan for employees under which the Company currently matches 50% of a plan participant’s contribution up to 6% of the employee’s annual salary. A plan participant may contribute up to a maximum of 15% of their compensation, up to $20,500, for the year ending December 31, 2022.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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