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SHAREHOLDERS' EQUITY
12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Common Stock Dividend Distribution
During the years ended December 31, 2023 and 2022, the Company declared an aggregate of $1.00 and $0.98 per share in cash dividends, respectively.
Stock Based Compensation

In 2022, the Company's board of directors adopted and the stockholders' approved the 2022 Incentive Plan (the "2022 Plan"). This plan permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance shares awards and any one or more of the foregoing, up to a maximum of 1,000,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units and certain performance based awards.

Each of the Company's Amended and Restated 2020 Incentive Plan (the "2020 Plan") and the Amended and Restated 2018 Incentive Plan (the "2018 Plan"; and together with the 2020 Plan, the "Prior Plans") authorized the Company to grant up to 1,000,000 and 600,000, respectively, of shares of common stock pursuant to the same type of awards available under the 2022 Plan. No further awards may be granted pursuant to the Prior Plans.
NOTE 9—STOCKHOLDERS' EQUITY (continued)

Incentive Plan2022 Plan2020 Plan2018 Plan
Maximum shares1,000,000 1,000,000 600,000 
Restricted shares issued(163,914)(475,747)(459,495)
RSUs issued(427,459)(210,375)— 
Restricted shares and RSUs forfeited2,861 2,303 1,000 
Expired shares— (316,181)(141,505)
Remaining shares available to be issued411,488 (1)— — 

(1) Excludes 166,439 shares of restricted shares issued in January 2024.
Restricted Stock
In January 2023 and January 2022, the Company granted shares of restricted stock pursuant to the 2022 Plan and 2020 Plan. The shares of restricted stock generally vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the basic and diluted earnings per share computation. The weighted average remaining vesting period of the outstanding restricted stock is 2.1 years. Subsequent to December 31, 2023, the Company granted 166,439 stock of restricted stock pursuant to the 2022 Plan.
The tables below presents information regarding the changes in the number of shares of restricted stock outstanding under the Company's equity incentive plans, compensation expense and unearned compensation for the periods indicated (dollars in thousands):
Year Ended December 31,
Restricted Stock Grants:20232022
Unvested at beginning of the year934,092 922,619 
Grants163,914 158,973 
Forfeitures(1,670)(250)
Vested during the year(144,497)(147,250)
Unvested at the end of the year951,839 934,092 
Amounts charged to compensation expense$3,360 $2,978 
Unearned compensation at period end$7,484 $7,728 
NOTE 9—STOCKHOLDERS' EQUITY (continued)
Restricted Stock Units
In June 2023 and June 2022, the Company issued restricted stock units (the "RSUs") to acquire shares of common stock. The RSUs granted entitle the recipients, subject to continued service during the applicable performance period, to (i) shares of common stock, (the "TSR Award"), based on achieving, during the three-year performance period (the "Measurement Period"), specified levels in compounded annual growth rate ("CAGR") in total stockholder return (“TSR”), and (ii) shares of common stock based on achieving, during the Measurement Period, specified levels in CAGR in adjusted funds from operations (the "AFFO Award"), in each case as determined pursuant to the award agreement. In addition, with respect to each of the RSUs granted in 2023 and 2022, additional shares (the "Peer Group Adjustment") may be added to or subtracted from the TSR Award based on attaining or failing to attain, as the case may be, during the Measurement Period, of specified levels of CAGR in TSR in comparison to the REITs that comprise, with specified exceptions, the FTSE NAREIT Equity Apartment  Index.
The RSU recipients also received dividend equivalent rights entitling them to an amount equal to cash dividends they would have received with respect to the shares of common stock underlying their RSUs as if the underlying shares were outstanding during the Measurement Period, if, when, and to the extent, the related RSUs vest. The shares underlying the RSUs are not participating securities but are contingently issuable shares.
The tables below presents activity and changes in the number of RSUs under the Company's equity incentive plans, compensation expense and unearned compensation for the periods indicated (dollars in thousands):
Year Ended December 31,
20232022
RSUs:
Unvested units at beginning of year420,739 210,375 
Grants - TSR Awards95,550 94,431 
Grants - TSR Peer group adjustment23,890 23,608 
Grants - AFFO Awards95,550 94,431 
     Total RSUs granted in applicable year214,990 212,470 
Forfeitures(1,239)(2,106)
 Total unvested RSUs at end of year634,490 420,739 
Amounts charged to compensation expense $1,408 $1,508 
Unearned compensation at period end$1,999 $4,269 

For the TSR Awards, a third party appraiser prepared a Monte Carlo simulation pricing model to assist management in determining fair value. The Monte Carlo valuation consisted of computing the grant date fair value of the awards using the Company's simulated stock price. For these TSR awards, the per unit of share fair value was estimated using the following assumptions:
 Award YearExpected Life ( yrs)Dividend RateRisk-Free Interest RateExpected Price Volatility
202335.08%4.42%to5.28%28.99%to37.97%
202234.57%2.23%to3.11%35.60%to47.40%


For the AFFO Awards granted, fair value is based on the market value on the date of grant. Expense is not recognized on RSUs which the Company does not expect to vest because the performance conditions are not expected to be satisfied.
NOTE 9—STOCKHOLDERS' EQUITY (continued)
Performance assumptions are re-evaluated quarterly.The total amount recorded at the grant date as deferred compensation with respect to the AFFO awards granted in 2023 and 2022 was $1,879,000 and $2,068,000 respectively.
The following table reflects the compensation expense recorded for all incentive plans (dollars in thousands):
Year Ended December 31,
20232022
Restricted stock $3,360 $2,978 
RSUs1,408 1,508 
  Total compensation$4,768 $4,486 
Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands):
Year Ended December 31,
20232022
Numerator for basic and diluted earnings per share:
Net income$4,015 $50,099 
Deduct (earnings) attributable to non-controlling interests(142)(144)
Deduct (earnings) allocated to unvested restricted stock(953)(2,472)
Net income available for common stockholders: basic and diluted$2,920 $47,483 
Denominator for basic earnings per share:
Weighted average number of common shares outstanding17,918,270 17,793,035 
Effect of dilutive securities:
RSUs30,006 59,916 
Denominator for diluted earnings per share:
Weighted average number of shares17,948,276 17,852,951 
Earnings per common share, basic$0.16 $2.67 
Earnings per common share, diluted$0.16 $2.66 
Equity Distribution Agreements
Effective as of May 12, 2023, the Company (i) terminated the equity distribution agreements dated March 18, 2022 and (ii) entered into equity distribution agreements with three sales agents to sell up to $40,000,000 of shares of its common stock from time-to-time in an at-the-market offering. During the year ended December 31, 2023, the Company did not sell any shares. During the year ended December 31, 2022 the Company sold 347,815 shares, for an aggregate sales price of $7,870,000, before commissions and fees of $98,000. At December 31, 2023, the Company is authorized to sell an aggregate of $32,131,000 of shares pursuant to the equity distribution agreements.
Share Repurchase
Pursuant to the Company’s repurchase program(s), as amended from time to time, the Company is authorized to repurchase shares of its common stock through open-market transactions, privately negotiated transactions, or otherwise.
NOTE 9—STOCKHOLDERS' EQUITY (continued)
In June 2023, the Board of Directors extended the term of the Company's share repurchase program from December 31, 2023 to December 31, 2025 and increased the existing repurchase authorization from $5,000,000 to $10,000,000 of shares. In August 2023 and December 2023, the Board of Directors, replenished the authorization by approximately $6,750,000 and $7,230,000, respectively, to increase the repurchase authorization as of such date to $10,000,000 of shares.
During the year ended December 31,2023, the Company repurchased 779,423 shares of common stock for total consideration of approximately $14,397,000, net of commissions of $44,000. As of December 31, 2023, the Company is authorized to repurchase approximately $9,584,000 of shares of common stock.
From January 1, 2024 through March 1, 2024, the Company repurchased 123,061 shares of common stock at an average price per share of $18.43 for an aggregate cost of $2,268,000. At March 1, 2024, the Company is authorized to repurchase up to $7,316,000 of shares of common stock.
During the twelve months ended December 31, 2022, the Company did not repurchase any shares of common stock.
Dividend Reinvestment Plan
The Dividend Reinvestment Plan (the “DRP”), among other things, provides stockholders with the opportunity to reinvest all or a portion of their cash dividends paid on the Company’s common stock in additional shares of its common stock, at a discount, determined in the Company’s sole discretion, of up to 5% from the market price for the common stock (as such price is calculated pursuant to the DRP). The discount from the market price as of December 31, 2023 was 3%. In the year ended December 31, 2023 and 2022, the Company issued 165,228 and 62,360 shares in lieu of cash dividends of $3,034,000 and $1,279,000, respectively.