Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Company (Tables)

v3.23.1
Equity-Based Compensation of the Company (Tables)
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
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
March 31,
  2023 2022
Restricted common shares (1)
$ 1,755  $ 1,569 
Notional unit performance awards (1)
384  1,045 
Options 132  94 
Total equity-based compensation $ 2,271  $ 2,708 
(1)    The three months ended March 31, 2023 includes the reversal of compensation costs related to the voluntary resignation 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
March 31,
  2023 2022
Equity-based compensation expense capitalized $ 52  $ 38 
Schedule of Nonvested Performance-based Units Activity
The following table sets forth 2023 PSP performance targets and other relevant information about the 2023 PSP:
Performance targets (1)
Absolute portion of award:
Percent of total award 33.3%
Absolute total shareholder return range 26.0  % - 40.5%
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)
30th - 80th
Percentage of units to be earned 20  % - 100%
Maximum number of restricted common shares that may be earned 489,122 
March grant date fair value per share $ 12.08 
(1)The number of restricted common shares received under the 2023 PSP 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.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The fair values of the 2023 PSP awards granted during the three months ended March 31, 2023 were determined at the grant dates using a Monte Carlo simulation pricing model and the following assumptions:
Risk free interest rate (1)
3.9  %
Expected dividend yield (2)
4.6  %
Expected volatility (3)
62  %
(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 average dividend yield over the previous three-year period and the current dividend yield as of the valuation date.
(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.