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| Equity | 8. EQUITY Pursuant to the Company's Articles of Incorporation (the “Charter”), the Company is authorized to issue an aggregate of 450,000,000 shares of common stock with a par value of $0.01 per share and 50,000,000 shares of preferred stock with a par value of $0.01 per share. The Company's Board of Directors, without any action by our stockholders, may amend the Company's Charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series of stock that the Company has authority to issue. The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Board of Directors in accordance with the Maryland General Corporation Law, and to all rights of the stockholder pursuant to the Maryland General Corporation Law. Stock Repurchase Program In November 2025, the Board of Directors authorized a stock repurchase program under which the Company may purchase up to $75.0 million of its outstanding common stock from time to time through November 10, 2026. The Company may make repurchases through open market transactions, block purchases, privately negotiated transactions or in such other manner in compliance with applicable securities laws and regulations. The manner, timing and amount of any repurchases will be based on an evaluation of business, market and other conditions, stock price, regulatory and contractual requirements, capital availability and other factors. The repurchase program does not require the Company to acquire any particular amount of common stock, and the program may be suspended, modified or discontinued at any time at the Company’s discretion without prior notice. As of June 30, 2026, no repurchases were made under the stock repurchase program. ATM Equity Offering Program On February 27, 2026, the Company established an at-the-market common equity offering program (“ATM Program”) pursuant to which the Company may, from time to time, publicly offer and sell up to $75.0 million in aggregate of shares of common stock, par value $0.01 per share, through Wells Fargo Securities, LLC, as sales agent. The ATM Program includes a forward component that permits the Company to enter into forward sale agreements with Wells Fargo Bank, National Association, as forward purchaser (the “Forward Counterparty”). In June 2026, the Company sold 2,588,775 shares for gross proceeds of $50.5 million on the ATM Program at a gross price of $19.50 per share, of which 1,819,387 were sold as forward sale agreements as described below. During the quarter, the Company settled 898,983 shares, receiving net proceeds of $17.3 million. As of June 30, 2026, the Company has 1,689,792 shares left to be settled, worth $32.2 million in net proceeds. Forward Sale Agreements During June 2026, the Company entered into forward sale agreements with the Forward Counterparty (collectively, the “Forward Sale Agreements”) with respect to an aggregate of 1,819,387 shares of common stock at a weighted-average initial forward price of $19.2660 per share. Under each Forward Sale Agreement, the Forward Counterparty borrowed and sold shares of the Company’s common stock in the market to hedge its exposure. The Company did not receive any proceeds at the time the Forward Sale Agreements were executed. As of June 30, 2026, 1,689,792 shares remain unsettled under the Forward Sale Agreements. The Company may physically settle the Forward Sale Agreements (by the delivery of shares of common stock) and receive net proceeds from the sale of those shares on one or more settlement dates, which shall occur no later than June 11, 2027. The weighted-average initial forward price of $19.2660 per share represents the volume-weighted average price at which the Forward Counterparty sold the borrowed shares ($19.50 per share), less the applicable selling commission. The forward price is subject to reduction on each Forward Price Reduction Date (June 30, September 30, and December 31, 2026, and March 31, 2027) by $0.215 per share, representing the per-share quarterly dividend declared on the Company’s common stock. As of June 30, 2026, the adjusted forward price is $19.08 per share, and estimated aggregate net proceeds upon full physical settlement are approximately $32.2 million. Settlement The Company may physically settle the Forward Sale Agreements (by the delivery of shares of common stock) and receive net proceeds from the sale of those shares on one or more settlement dates. The Company may also elect net share or cash settlement, subject to certain conditions; the Forward Counterparty does not have the right to require cash settlement. On June 30, 2026, the Company settled 129,595 shares for $2.5 million. Accounting Treatment The Company has evaluated the Forward Sale Agreements and concluded that they are not liabilities under ASC 480 and qualify for equity classification under the scope exception in ASC 815-40. Accordingly, the Forward Sale Agreements are classified as equity instruments and are not carried as derivative liabilities. No asset, liability, or separate equity amount is recognized for the Forward Sale Agreements prior to settlement. The unsettled position is disclosed in the notes to the financial statements as addressed in the Forward Sale Agreements note above. Upon physical settlement, the Company will record the shares issued and the net proceeds received as an increase to common stock (at par) and Additional Paid-In Capital, net of deferred offering costs. Earnings Per Share The Forward Sale Agreements are excluded from basic earnings per share because the underlying shares are not issued and outstanding during the unsettled period. For diluted earnings per share, the treasury stock method is applied, and the dilutive effect, if any, is reflected in the diluted weighted-average shares outstanding reconciliation. Dividends During the six months ended June 30, 2026, the Board of Directors approved the following common stock and OP Unit quarterly dividends:
(1) Amount includes dividends for RSUs and LTIP Units to the extent entitled. During the six months ended June 30, 2025, the Board of Directors approved the following common stock and OP Unit quarterly dividends:
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