| Noncontrolling interest activity |
The following table summarizes the activity for noncontrolling interest in the Operating Partnership during the years ended December 31, 2025, 2024 and 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Noncontrolling Interest in the Operating Partnership | | LTIP Units | | Other
Common Units | | Total
Noncontrolling Common Units | | Noncontrolling Interest Percentage | | Balance at December 31, 2022 | | 2,314,076 | | | 1,570,640 | | | 3,884,716 | | | 2.1 | % | | Granted/Issued | | 326,215 | | | — | | | 326,215 | | | N/A | | Forfeited | | (9,119) | | | — | | | (9,119) | | | N/A | | Conversions from LTIP units to Other Common Units | | (269,252) | | | 269,252 | | | — | | | N/A | | Redemptions from Other Common Units to common stock | | — | | | (372,174) | | | (372,174) | | | N/A | | | | | | | | | | | Balance at December 31, 2023 | | 2,361,920 | | | 1,467,718 | | | 3,829,638 | | | 2.1 | % | | Granted/Issued | | 383,292 | | | — | | | 383,292 | | | N/A | | Forfeited | | — | | | — | | | — | | | N/A | | Conversions from LTIP units to Other Common Units | | (437,550) | | | 437,550 | | | — | | | N/A | | Redemptions from Other Common Units to common stock | | — | | | (440,550) | | | (440,550) | | | N/A | | | | | | | | | | | 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 | | (214,885) | | | 214,885 | | | — | | | N/A | | Redemptions from Other Common Units to common stock | | — | | | (263,007) | | | (263,007) | | | N/A | | | | | | | | | | | Balance at December 31, 2025 | | 2,373,111 | | | 1,416,596 | | | 3,789,707 | | | 1.9 | % |
|
| Schedule of share-based payment award, LTIP unit awards, valuation assumptions |
The following table summarizes the assumptions used in valuing such LTIP units granted during the years ended December 31, 2025, 2024 and 2023 (excluding those LTIP units granted pursuant to the settlements of performance units; refer to Note 8 for details). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | LTIP Units | | Assumptions | | Grant date | | January 7, 2025 | | July 1, 2024 | | January 8, 2024 | | March 31, 2023 | | January 11, 2023 | | Expected term (years) | | 10 | | 10 | | 10 | | 10 | | 10 | | Expected stock price volatility | | 25.0 | % | | 25.0 | % | | 25.0 | % | | 37.0 | % | | 37.0 | % | | Expected dividend yield | | 4.0 | % | | 4.0 | % | | 4.0 | % | | 4.0 | % | | 4.0 | % | | Risk-free interest rate | | 4.330 | % | | 4.580 | % | | 4.110 | % | | 3.810 | % | | 3.900 | % | | Fair value of LTIP units at issuance (in thousands) | | $ | 4,848 | | | $ | 60 | | | $ | 4,597 | | | $ | 628 | | | $ | 4,635 | | | LTIP units at issuance | | 154,001 | | | 1,775 | | | 124,235 | | | 19,345 | | | 139,026 | | | Fair value unit price per LTIP unit at issuance | | $ | 31.48 | | | $ | 33.80 | | | $ | 37.00 | | | $ | 32.47 | | | $ | 33.34 | |
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.
|
| Schedule of activity related to unvested LTIP unit awards |
The following table summarizes activity related to the Company’s unvested LTIP units during the years ended December 31, 2025, 2024 and 2023.
| | | | | | | | | | | | | | | | Unvested LTIP Units | | LTIP Units | | Weighted Average Grant Date Fair Value Per Share | | Balance at December 31, 2022 | | 140,116 | | | $ | 35.60 | | | Granted | | 326,215 | | | $ | 33.29 | | | Vested | | (280,286) | | | $ | 33.81 | | | Forfeited | | (9,119) | | | $ | 34.11 | | | Balance at December 31, 2023 | | 176,926 | | | $ | 34.25 | | | Granted | | 383,292 | | | $ | 36.99 | | | Vested | | (377,836) | | | $ | 36.13 | | | Forfeited | | — | | | $ | — | | | Balance at December 31, 2024 | | 182,382 | | | $ | 36.10 | | | Granted | | 280,334 | | | $ | 31.48 | | | Vested | | (296,464) | | | $ | 33.25 | | | Forfeited | | — | | | $ | — | | | Balance at December 31, 2025 | | 166,252 | | | $ | 33.39 | |
|
| Schedule of vested LTIP unit award activity |
The following table summarizes the fair value at vesting for the LTIP units that vested during years ended December 31, 2025, 2024 and 2023.
| | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | | Vested LTIP Units | | 2025 | | 2024 | | 2023 | | Vested LTIP units | | 296,464 | | | 377,836 | | | 280,286 | | | Fair value of vested LTIP units (in thousands) | | $ | 10,242 | | | $ | 14,440 | | | $ | 9,507 | |
|