Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Company (Tables)

v3.8.0.1
Equity-Based Compensation of the Company (Tables) - Tanger Factory Outlet Centers, Inc. [Member]
 9 Months Ended
Sep. 30, 2017
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
We recorded equity-based compensation expense in general and administrative expenses in our consolidated statements of operations as follows (in thousands):
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
Restricted common shares
 
$
2,302

 
$
3,020

 
$
7,039

 
$
8,527

Notional unit performance awards
 
939

 
1,057

 
2,870

 
2,967

Options
 
77

 
83

 
205

 
321

Total equity-based compensation
 
$
3,318

 
$
4,160

 
$
10,114

 
$
11,815



Equity-based compensation expense capitalized as a part of rental property and deferred lease costs were as follows (in thousands):
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
Equity-based compensation expense capitalized
 
$
267

 
$
244

 
$
777

 
$
741

Schedule of Nonvested Performance-based Units Activity
The following table sets forth 2017 OPP performance targets and other relevant information about the 2017 OPP:
Performance targets (1)
 
 
Absolute portion of award:
 
 
Percent of total award
 
50%
Absolute share price appreciation range
 
18% - 35%
Percentage of units to be earned
 
20%-100%
 
 
 
Relative portion of award:
 
 
Percent of total award
 
50%
Percentile rank of peer group range(2)
 
40th - 70th
Percentage of units to be earned
 
20%-100%
 
 
 
Maximum number of restricted common shares that may be earned
 
296,400

Grant date fair value per share
 
$
16.60

(1)
The number of restricted common shares received under the 2017 OPP will be determined on a pro-rata basis by linear interpolation between share price appreciation thresholds, both for absolute share price appreciation and for relative share price appreciation amongst the Company's peer group. The share price for the purposes of calculation of share price appreciation will be adjusted on a penny-for-penny basis with respect to any dividend payments made during the measurement period.
(2)
The peer group is based on companies included in the SNL Equity REIT index.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The fair values of the 2017 OPP awards granted during the nine months ended September 30, 2017 were determined at the grant dates using a Monte Carlo simulation pricing model and the following assumptions:
Risk free interest rate (1)
 
1.52
%
Expected dividend yield (2)
 
3.4
%
Expected volatility (3)
 
19
%
(1)
Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the restricted unit grants.
(2)
The dividend yield is calculated utilizing the dividends paid for the previous five-year period.
(3)
Based on a mix of historical and implied volatility for our common shares and the common shares of our peer index companies over the measurement period.