Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Company (Tables)

v3.22.2.2
Equity-Based Compensation of the Company (Tables)
 6 Months Ended
Jun. 30, 2022
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 Six months ended
June 30, June 30,
  2022 2021 2022 2021
Restricted common shares (1)
$ 2,644  $ 1,539  $ 4,213  $ 4,112 
Notional unit performance awards (1)
1,529  1,147  2,574  2,296 
Options 78  77  172  200 
Total equity-based compensation $ 4,251  $ 2,763  $ 6,959  $ 6,608 
(1)    Each of the three and six months ended June 30, 2022 and three and six months ended June 30, 2021, include the accelerated recognition of compensation cost.

Equity-based compensation expense capitalized as a part of rental property and deferred lease costs were as follows (in thousands):
Three months ended Six months ended
June 30, June 30,
  2022 2021 2022 2021
Equity-based compensation expense capitalized $ 47  $ 2  $ 86  $ 66 
Schedule of Nonvested Performance-based Units Activity
The following table sets forth 2022 PSP performance targets and other relevant information about the 2022 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)
30  th - 80th
Percentage of units to be earned 20  % - 100%
Maximum number of restricted common shares that may be earned 555,349 
February grant date fair value per share $ 11.68 
(1)The number of restricted common shares received under the 2022 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 2022 PSP awards granted during the six months ended June 30, 2022 were determined at the grant dates using a Monte Carlo simulation pricing model and the following assumptions:
Risk free interest rate (1)
1.7  %
Expected dividend yield (2)
5.7  %
Expected volatility (3)
65  %
(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.