Stock-based Compensation |
3 Months Ended |
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Mar. 31, 2026 | |
| Share-Based Payment Arrangement [Abstract] | |
| Stock-based Compensation | Stock-based Compensation On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, pursuant to which the Company has the authority and power to grant awards of restricted shares of its Common Stock to its directors, executive officers, and employees. On April 2, 2025, the Board adopted the A&R Incentive Plan. The Company’s stockholders approved the A&R Incentive Plan on May 21, 2025, which, among other things, increased the number of shares authorized for issuance by 1,000,000 shares to 2,250,000 shares. During the three months ended March 31, 2026, the Company granted time-based awards to its executive officers and certain employees, consisting of 113,928 restricted shares of Common Stock, net of forfeitures, or the Time-Based 2026 Awards. The Time-Based 2026 Awards will vest 25% annually commencing on January 2, 2027, subject to each executive’s and employee’s employment through the applicable vesting dates, with certain exceptions. As of March 31, 2026, there was $2,658,000 of total unrecognized stock-based compensation expense related to these awards, which will be recognized over the vesting period. Additionally, during the three months ended March 31, 2026, the Company’s compensation committee granted Performance DSUs to its executive officers, or the Performance-Based 2026 Awards. The Performance-Based 2026 Awards will be measured based on the Company’s market performance over a three-year performance period ending on December 31, 2028. Subject to each executive’s continuous employment through the applicable vesting dates, with certain exceptions, the Performance-Based 2026 Awards, if any, will be issued following the performance period end date. Market-based awards are valued as of the grant date utilizing a Monte Carlo simulation model that assesses the probability of satisfying certain market-based thresholds over a three-year performance period. The number of shares of Common Stock that vest is based on the Company’s total shareholder return relative to that of the MSCI US REIT Index and a Net Lease REIT Peer Group on a percentile basis. As of March 31, 2026, there was $2,123,000 of total unrecognized stock-based compensation expense related to these awards, which will be recognized over the vesting period. The Time-Based 2026 Awards and the Performance-Based 2026 Awards, or collectively, the 2026 Awards, were granted under and are subject to the terms of the A&R Incentive Plan and award agreements. The Company recognized total stock-based compensation expense of $1,197,000, and $1,261,000 for the three months ended March 31, 2026 and 2025, respectively. The Company recognized accelerated stock-based compensation expense of $47,000 for the three months ended March 31, 2026 related to the acceleration of award agreements. The Company did not recognize any accelerated stock-based compensation expense during the three months ended March 31, 2025. Stock-based compensation expense is reported in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income, and forfeitures are recorded as they occur.
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