Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Company (Tables)

v3.20.2
Equity-Based Compensation of the Company (Tables) - Tanger Factory Outlet Centers, Inc. [Member]
 9 Months Ended
Sep. 30, 2020
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,
  2020 2019 2020 2019
Restricted common shares (1)
$ 1,610  $ 2,084  $ 5,731  $ 9,224 
Notional unit performance awards (1)
624  1,446  3,606  5,021 
Options 113  45  229  126 
Total equity-based compensation $ 2,347  $ 3,575  $ 9,566  $ 14,371 

(1) The nine months ended September 30, 2019 includes the accelerated recognition of compensation cost related to the planned retirement of an executive officer.

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,
  2020 2019 2020 2019
Equity-based compensation expense capitalized $ 103  $ 94  $ 305  $ 286 
Schedule of Nonvested Performance-based Units Activity
The following table sets forth 2020 OPP performance targets and other relevant information about the 2020 OPP:
Performance targets (1)
Absolute portion of award:
Percent of total award 33.3%
Absolute total shareholder return range 36.8  % - 52.1%
Percentage of units to be earned 20  % - 100%
Relative portion of award:
Percent of total award 66.7%
Percentile rank of peer group range(2)
30  th - 80th
Percentage of units to be earned 20  % - 100%
Maximum number of restricted common shares that may be earned (3)
902,167 
February grant date fair value per share $ 7.30 
April grant date fair value per share (3)
$ 3.11 
(1)The number of restricted common shares received under the 2020 OPP will be determined on a pro-rata basis by linear interpolation between total shareholder return thresholds, both for absolute total shareholder return and for relative total shareholder return amongst the Company’s peer group.
(2)The peer group is based on companies included in the FTSE NAREIT Retail Index.
(3)In April 2020, Mr. Yalof was awarded 205,480 notional units under the 2020 OPP. These awards have the same terms as the awards our executive officers received in February 2020.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The fair values of the 2020 OPP awards granted during the nine months ended September 30, 2020 were determined at the grant dates using a Monte Carlo simulation pricing model and the following assumptions:
Risk free interest rate (1)
1.4  %
Expected dividend yield (2)
8.4  %
Expected volatility (3)
29  %
(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.