The following table summarizes the activity for noncontrolling interest in the Operating Partnership during the three months ended March 31, 2025.


Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest






Balance at December 31, 2024	2,307,662	1,464,718	3,772,380	2.0	%
Granted/Issued	280,334	—	280,334	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(53,360)	53,360	—	N/A
Redemptions from Other Common Units to common stock	—	(53,360)	(53,360)	N/A

Balance at March 31, 2025	2,534,636	1,464,718	3,999,354	2.1	%

The Company granted LTIP units under the 2011 Plan on January 7, 2025 to non-employee, independent directors, which vest in equal quarterly installments over one year, with the first vesting date having been March 31, 2025, subject to the recipient’s continued service. The Company granted LTIP units under the 2011 Plan on January 7, 2025 to certain executive officers and senior employees of the Company, which will vest in equal quarterly installments over four years, with the first vesting date having been March 31, 2025, subject to the recipient’s continued employment. Refer to Note 8 for a discussion of the LTIP units granted on January 7, 2025 pursuant to the 2022 performance units.

The fair value of the LTIP units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and non-recurring fair value measurements. The following table summarizes the assumptions used in valuing such LTIP units granted during the three months ended March 31, 2025 (excluding the LTIP units granted pursuant to the 2022 performance units discussed in Note 8).


LTIP Units
Grant date	January 7, 2025
Expected term (years)	10
Expected stock price volatility	25.0		%
Expected dividend yield	4.0		%
Risk-free interest rate	4.33		%
Fair value of LTIP units at issuance (in thousands)	$	4,848
LTIP units at issuance	154,001
Fair value unit price per LTIP unit at issuance	$	31.48

The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching a three-year time period.


Unvested LTIP Units	LTIP Units	Weighted Average Grant Date Fair Value per Unit




Balance at December 31, 2024	182,382	$	36.10
Granted	280,334	$	31.48
Vested	(192,086)	$	32.81
Forfeited	—	$	—
Balance at March 31, 2025	270,630	$	33.65

The unrecognized compensation expense associated with the Company’s LTIP units at March 31, 2025 was approximately $8.1 million and is expected to be recognized over a weighted average period of approximately 2.6 years.

At March 31, 2025, the Company held a 90.0% interest in a joint venture located in Concord, North Carolina, and a 95.3% interest in a joint venture located in Reno, Nevada. The third-party equity interest in these joint ventures, totaling approximately $2.4 million at March 31, 2025, is included in noncontrolling interest in joint ventures on the accompanying Consolidated Balance Sheets.