Stock-Based Compensation

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

The Company’s Second Amended and Restated 2013 Equity Incentive Plan, as amended (the "Equity Plan"), permits the grant of restricted stock awards, stock options, stock appreciation rights, LTIP Units, performance units, and other equity-based awards up to an aggregate of 6,900,000 shares of common stock. As of June 30, 2026, there were 698,413 shares available for issuance under the Equity Plan. Items disclosed throughout this footnote include award data for employees associated with discontinued operations. Refer to Note 4 for additional detail related to vesting of awards for these employees in connection with the sale of the general contracting and real estate services business.

Restricted or Unrestricted Stock Awards

The Company issues time-based awards in the form of restricted stock to certain employees (executive and non-executive) and certain non-employee directors. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards may vest either immediately upon grant or over a period of approximately one year, subject to continued service to the Company. Unvested restricted stock awards are entitled to receive distributions from their grant date.

The fair value of the restricted stock awards was determined using the closing stock price as of the day before the grant date.

A summary of the unvested restricted shares is as follows:


	2026			2025
	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Number of Shares	Weighted Average Grant Date Fair Value Per Share
Unvested as of January 1	146,493	$	9.68	165,497	$	11.81
Granted	81,156	6.31		381,796	8.74
Vested	(161,119)	9.07		(377,253)	9.95
Forfeited	(8,144)	8.79		(5,999)	9.74
Unvested as of June 30	58,386	$	6.80	164,041	$	9.02

During the three months ended June 30, 2026 and 2025, in connection with the vesting of restricted stock awards, employees tendered 51,107 and 146,624 shares, respectively, to satisfy minimum statutory tax withholding obligations. As of June 30, 2026, the total unrecognized compensation expense related to unvested shares of restricted stock was $0.3 million, which the Company expects to recognize over a weighted average period of 14 months.

LTIP Unit Awards

LTIP Units are a special class of partnership interests in the Operating Partnership ("LTIP Units"). The Operating Partnership has two classes of LTIP Units: (1) Time-Based LTIP Units, which have time-based vesting conditions (“Time-

Based LTIP Units”), and (2) Performance LTIP Units, which have market-based and/or performance-based vesting conditions (“Performance LTIP Units”). Each LTIP Unit awarded is deemed equivalent to an award of one share of common stock under the Equity Plan, reducing the availability for other equity awards on a one-for-one basis. The vesting period for Time-Based LTIP Units, if any, and the vesting conditions for Performance LTIP Units will be determined at the time of issuance. Under the terms of the Operating Partnership's agreement of limited partnership, the Operating Partnership will revalue for tax purposes its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP Units to equalize the capital accounts of such holders with the capital accounts of Common OP unitholders. Subject to any agreed upon exceptions (including pursuant to the applicable LTIP Unit award agreement), once vested and having achieved parity with Common OP unitholders, LTIP Units are convertible into Common OP Units on a one-for-one basis. Unvested Time-Based LTIP Units are entitled to receive distributions from their grant date. Performance-Based LTIP Units include a dividend provision in which 10% of outstanding units receives a distribution during the performance period and the remainder of the dividends are settled on the conclusion of the performance period based on the number of performance-based LTIP units that ultimately vest upon achievement of the specified performance criteria.

LTIP Unit awards have the following vesting schedules:

Time-Based LTIP Units

•2024 & 2025 Executive (2023 & 2024 Short Term Incentive Plan):

◦Granted in March 2024 or 2025, these units vest two-fifths immediately upon grant and one-fifth on each of the first three anniversaries of the grant date, subject to continued service to the Company.

•2025 Consultant:

◦Granted in August 2025, these units vest 100% on the first anniversary of the grant date, subject to continued service to the Company.

•2025 and 2026 Non-Executive:

◦Granted in March 2025 or 2026, these units vest in three equal installments of one-third each immediately, and on the first and second anniversaries of the grant date, subject to continued service to the Company.

•2025 and 2026 Executive (Enhanced Long Term Incentive Plan):

◦Granted in March 2025 or 2026, these units vest in three equal installments of one-third each on the first, second, and third anniversaries of the grant date, subject to continued service to the Company.

•2026 Executive - Retention:

◦Granted in March 2026, these units vest fully on the third anniversary of the grant date.

•2026 Alignment of Interest Award:

◦To be granted in March 2027, executives and certain non-executives were given the option to elect to take the cash portion of their annual bonus as Time-Based LTIP Units. Additionally, the recipients of the awards may elect to have all Time-Based LTIP Units vested upon issuance over a three year vesting schedule where one-third vests on each anniversary following the grant date. If the vesting schedule is elected, the bonus potential increases to 125% of the target award.

•2026 Board of Directors:

◦Granted in June 2026, these units vest 100% at the time of the 2027 Annual Stockholders Meeting subject to continued service to the Company.

The fair values of the Time-Based LTIP Units granted in March 2024, 2025, and 2026 were determined using a combination of the following; Black-Scholes Model, Finnerty Look-Back Option Analysis, and Monte Carlo Simulation, considering the Company's stock price as of the grant date. The Company estimates the compensation expense for the LTIP Units on a straight-line basis using a calculation that recognizes 100% of the grant date fair value over the applicable vesting period for employees (based on the vesting schedule described in the previous paragraph), or approximately one year for directors.

Performance-Based LTIP Units

•2025 Executive and 2026 Executive and Non-Executive:

◦Granted in March 2025 or 2026, these units vest on the third anniversary of the grant date, subject to the achievement of specified market-based criteria.

•2025 Executive and Non-Executive Special Award:

◦Granted in June 2025, these units vest on the fifth anniversary of the grant date, subject to the achievement of specified market-based and performance-based criteria.

The fair values of the Performance-Based LTIP Units granted in March of 2025 and 2026 were determined using a Monte Carlo Simulation considering the Company's stock price as of the grant date. The fair value of the Performance-Based LTIP Units granted in June of 2025 were determined using Monte Carlo Simulation for total shareholder return, and estimated probability of awards that will vest multiplied by the number of total enterprise value relayed units multiplied by the closing stock price on the grant date. The Company estimates the compensation expense for the LTIP Units on a straight-line basis using a calculation that recognizes 100% of the grant date fair value over the applicable vesting period

for employees (based on the vesting schedule described in the previous paragraph), with the exception of the total enterprise value relayed units described above, whose probability of vesting may change upon vesting expectations.

A summary of the unvested LTIP Unit awards is as follows:


	2026			2025
	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Number of Shares	Weighted Average Grant Date Fair Value Per Share
Unvested as of January 1	2,111,445	$	5.84	119,872	$	9.66
Granted	1,337,838	4.97		2,106,041	6.44
Vested	(158,576)	7.63		(95,208)	8.57
Forfeited	—	—		—	—
Unvested as of June 30	3,290,707	$	5.40	2,130,705	$	6.53

During the three months ended June 30, 2026 and 2025, there were no LTIP Units tendered to satisfy minimum statutory tax withholding obligations. As of June 30, 2026, the total unrecognized compensation expense related to unvested LTIP Units was $9.9 million, which the Company expects to recognize over a weighted average period of 48 months.

Performance Unit Awards

The Company endeavors to further align the incentives of certain members of management with its long-term investors by awarding a portion of their equity compensation in the form of multi-year performance unit awards that use the level of achievement of the total shareholder return as the primary metric ("Performance Units"). Vesting of 50% of the target award is based solely on continued employment and vesting of the remainder of the award (50%) is based on the Company’s relative TSR performance over the 3-year period following execution of each agreement. The Performance Units may convert into shares of common stock at a range of 0% to 200% of the number of Performance Units granted contingent upon the participant’s continued employment and the Company’s relative total stockholder return ("TSR") at specified percentiles of the peer group. At the end of the Performance Units’ measurement period, if the applicable criterion are met, Performance Units generally vest two-fifths on the last day of the three-year performance period, and the remaining three-fifths in equal amounts on the first three anniversaries following the end of the three-year performance period, subject to continued service to the Company and certain market conditions. For unvested Performance Units granted in 2021 and prior, vesting of 50% of the target award is based on absolute TSR and vesting of the remainder of the award (50%) is based on relative TSR. Awards granted in 2021 and prior are fully vested as of June 30, 2026. Unvested Performance Units are entitled to accumulate distributions from their grant date, payable in cash or in additional shares of common stock upon issuance of the common stock to which those dividends relate.

The fair value of the performance units was determined using a Monte Carlo simulation considering the stock price as of the grant date. The Company estimates the compensation expense for the performance units on a straight-line basis using a calculation that recognizes 100% of the grant date fair value over five years for performance units granted prior to 2022 and six years for performance units granted in 2022 and beyond.

A summary of the unvested Performance Unit awards is as follows:


	2026			2025
	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Number of Shares	Weighted Average Grant Date Fair Value Per Share
Unvested as of January 1	103,000	$	11.92	110,375	$	11.98
Granted(1)	—	—		45,000	10.45
Vested(2)	(4,500)	14.87		—	—
Forfeited	(23,000)	8.56		(9,125)	11.39
Unvested as of June 30	75,500	$	12.77	146,250	$	11.55

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(1)No grants were issued under this program in 2026.

(2)Amounts for 2026 represent acceleration of continued employment (50%) of outstanding awards where performance criteria was met for certain employees who departed the company as a result of the sale of the general contracting and real estate services business.


Date of Award	Number of Units Granted	Grant Date Fair Value		Conversion Range		Risk Free Interest Rate		Volatility		Expected Dividends
2021	42,500	$	9.67	0% to 200%		0.17	%	49.0	%	4.7	%
2022	47,500	$	17.12	0% to 200%		0.98	%	50.0	%	4.7	%
2023	47,500	$	12.61	0% to 200%	(1)	4.23	%	51.0	%	5.4	%
2024	50,000	$	9.23	0% to 200%	(1)	4.32	%	27.0	%	6.2	%
2025	45,000	$	10.45	0% to 200%	(1)	4.35	%	26.0	%	6.9	%

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(1)For Performance Units granted in 2022 and beyond, only 50% of each Award is subject to the conversion range. The remainder (50%) is guaranteed 1 to 1 conversion as long as the employee remains employed at the Company.

During the three months ended June 30, 2026, there were 7,387 Performance Units tendered by employees to satisfy minimum statutory tax withholding obligations. During the three months ended June 30, 2025, in connection with the vesting of Performance Units, zero shares of common stock were tendered by employees to satisfy minimum statutory tax withholding obligations. As of June 30, 2026, the total unrecognized compensation expense related to unvested Performance Units was $0.4 million, which the Company expects to recognize over a weighted average period of 54 months.