Non-controlling Interests. We have entered into partnerships to develop and/or own real estate. Given that our limited members do not have the substantive kick-out rights, liquidation rights, or participation rights, we have concluded that the partnerships are VIEs. As we exercise power over and receive benefits from the VIEs, we are considered the primary beneficiary. Accordingly, we consolidate the VIEs and record the non-controlling interests on the consolidated financial statements.

(1)

Subsequent to March 31, 2022, the 74-unit ALF comprising the joint venture was sold for $16,895. The ALF has a gross book value of $16,895 and a net book value of $15,549. We anticipate recognizing a gain on sale of approximately $1,300 in the second quarter of 2022. In connection with the sale, the current operator paid us a lease termination fee of approximately $1,200.

Common Stock. We have separate equity distribution agreements (collectively, “Equity Distribution Agreements”) to offer and sell, from time to time, up to $200,000,000 in aggregate offering price of shares of our common stock. As of March 31, 2022, no shares had been issued under the Equity Distribution Agreements. Accordingly, at March 31, 2022, we had $200,000,000 available under the Equity Distribution Agreements.

During the three months ended March 31, 2022 and 2021, we acquired 36,880 shares and 84,616 shares, respectively, of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.

Available Shelf Registration. We have an automatic shelf registration statement on file with the SEC, and currently have the ability to file additional automatic shelf registration statements, to provide us with capacity to publicly offer an indeterminate amount of common stock, preferred stock, warrants, debt,

depositary shares, or units. We may from time to time raise capital under our automatic shelf registration statement in amounts, at prices, and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of the offering. Our shelf registration statement expires on February 17, 2025.

Distributions. We declared and paid the following cash dividends (in thousands):


	Three Months March 31,
	2022				2021
	Declared		Paid		Declared			Paid
Common Stock ⁽¹⁾	$	22,480	$	22,480	$	23,169	⁽²⁾	$	23,169	⁽²⁾

(1)	Represents $0.19 per share per month for the three months ended March 31, 2022 and 2021.

(2)	Includes $764 of distributions that were paid as a result of the vesting of performance-based stock units.

In April 2022, we declared a monthly cash dividend of $0.19 per share on our common stock for the months of April, May and June 2022, payable on April 29, May 31, and June 30, 2022, respectively, to stockholders of record on April 21, May 23, and June 22, 2022, respectively.

Stock-Based Compensation. During the second quarter of 2021, we adopted and our shareholders approved the 2021 Equity Participation Plan (“the 2021 Plan”) which replaces the 2015 Equity Participation Plan (“the 2015 Plan”). Under the 2021 Plan, 1,900,000 shares of common stock have been authorized and reserved for awards, less one share for every one share that was subject to an award granted under the 2015 Plan after December 31, 2020 and prior to adoption. In addition, any shares that are not issued under outstanding awards under the 2015 Plan because the shares were forfeited or cancelled after December 31, 2020 will be added to and again be available for awards under the 2021 Plan. Under the 2021 Plan, the shares were authorized and reserved for awards to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2021 Plan and the 2015 Plan are set by our compensation committee at its discretion.

At March 31, 2022, we had 10,000 stock options outstanding and exercisable. During the three months ended March 31, 2022, 5,000 stock options expired and were cancelled. During the three months ended March 31, 2022 and 2021, no stock options were granted or exercised.

The following table summarizes our restricted stock activity for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
Outstanding, January 1		197,422		180,440
Granted		122,865		95,293
Vested		(83,341)		(78,482)
Outstanding, March 31		236,946		197,251

During the three months ended March 31, 2022 and 2021, we granted 86,332 and 71,892, respectively, of performance-based stock units. Additionally, no performance-based stock units vested during the three months ended March 31, 2022 and 108,720 performance-based stock units vested during the three months ended March 31, 2021.

During the three months ended March 31, 2022 and 2021, we granted restricted stock and performance-based stock units under the 2021 Plan and 2015 Plan as follows:


	No. of	Price per
Year	Shares/Units	Share		Vesting Period
2022	122,865	$	33.94	ratably over 3 years
	86,332	$	33.94	TSR targets ⁽¹⁾
	209,197

2021	95,293	$	42.27	ratably over 3 years
	71,892	$	42.27	TSR targets (1)
	167,185

(1)	Vesting is based on achieving certain total shareholder return (“TSR”) targets in 4 years with acceleration opportunity in 3 years.

Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the three months ended March 31, 2022 and 2021 were $1,925,000 and $1,852,000, respectively. At March 31, 2022, the remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows (in thousands):


	Remaining
	Compensation
Vesting Date	Expense
Nine months ended December 31, 2022	$	5,762
2023		5,405
2024		2,853
2025		309
Total	$	14,329