Common Stock Incentive Plan (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Share-Based Payment Arrangement [Abstract] |
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| Schedule of nonvested restricted stock activity |
The following table summarizes our common stock grant activity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | | 2020 | | | Number of shares | | Weighted average price(1) | | Number of shares | | Weighted average price(1) | | Number of shares | | Weighted average price(1) | Outstanding nonvested shares, beginning of year | | 212,630 | | | $ | 65.20 | | | 219,482 | | | $ | 63.69 | | | 259,698 | | | $ | 58.39 | | Shares granted(2) | | 156,274 | | | $ | 67.37 | | | 133,052 | | | $ | 64.27 | | | 103,473 | | | $ | 67.84 | | | Shares vested | | (118,160) | | | $ | 63.95 | | | (124,505) | | | $ | 61.57 | | | (141,486) | | | $ | 56.94 | | | Shares forfeited | | (8,084) | | | $ | 67.78 | | | (15,399) | | | $ | 65.09 | | | (2,203) | | | $ | 66.48 | | Outstanding nonvested shares, end of each period | | 242,660 | | | $ | 67.12 | | | 212,630 | | | $ | 65.20 | | | 219,482 | | | $ | 63.69 | |
(1) Grant date fair value. (2) Our restricted stock awards granted to employees vest over a service periods not exceeding four-years. Effective November 1, 2022, and applied retroactively for all outstanding awards, restricted stock awards granted to employees with 10 years of continued service and 60 years of age will vest over the shorter of the original vesting term or the period through the date in which the awardee reaches age 60.
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| Schedule of number of performance shares that vest based on the achievement of performance goals |
The number of performance shares that vest for each of the three years is based on the achievement of the following performance goals: | | | | | | | | | | | | | | | | | | | | | | | Weighting for year granted | | Annual Performance Awards Metrics | | 2022 | | 2021 | | 2020 | | Total shareholder return (“TSR”) ranking relative to MSCI US REIT Index | | 55 | % | | 70 | % | | 70 | % | | | | | | | | | Dividend per share growth rate | | 20 | % | | 15 | % | | 15 | % | Net Debt-to-Pro Forma Adjusted EBITDAre Ratio | | 25 | % | | N/A | | N/A | Net Debt-to-Adjusted EBITDAre Ratio | | N/A | | 15 | % | | 15 | % |
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| Schedule of nonvested performance shares activity |
The following table summarizes our performance share grant activity, inclusive of annual performance shares and the one-time performance shares related to the merger with VEREIT: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | | 2020 | | | Number of performance shares | | Weighted average price(1) | | Number of performance shares | | Weighted average price(1) | | Number of performance shares | | Weighted average price(1) | Outstanding nonvested shares, beginning of year | | 388,139 | | | $ | 68.09 | | | 291,759 | | | $ | 69.73 | | | 304,663 | | | $ | 62.25 | | Equitable adjustment - Orion Divestiture (2) | | — | | | | | 752 | | | | | — | | | | | Shares granted | | 174,940 | | | $ | 77.73 | | | 257,149 | | | $ | 64.18 | | | 136,729 | | | $ | 79.98 | | | Shares vested | | (74,247) | | | $ | 59.62 | | | (109,113) | | | $ | 62.52 | | | (139,012) | | | $ | 63.66 | | | Shares forfeited | | (17,952) | | | $ | 58.59 | | | (52,408) | | | $ | 65.83 | | | (10,621) | | | $ | 66.64 | | Outstanding nonvested shares, end of each period | | 470,880 | | | $ | 73.37 | | | 388,139 | | | $ | 68.09 | | | 291,759 | | | $ | 69.73 | |
(1) Grant date fair value.(2) Effective with the Orion Divestiture on November 12, 2021, outstanding equity awards were adjusted by a conversion ratio of 1.002342 per one Realty Income share then held.
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| Schedule of nonvested restricted stock units activity |
During 2022, 2021 and 2020, and in connection with our merger with VEREIT Inc., we also granted restricted stock units that primarily vest over service periods of three or four-years and have the same economic rights as shares of restricted stock: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | | 2020 | | | Number of restricted stock units | | Weighted average price(1) | | Number of restricted stock units | | Weighted average price(1) | | Number of restricted stock units | | Weighted average price(1) | Outstanding nonvested shares, beginning of year | | 67,367 | | | $ | 69.69 | | | 18,670 | | | $ | 70.38 | | | 15,511 | | | $ | 59.82 | | Equitable adjustment - Orion Divestiture (2) | | — | | | | | 109 | | | | | — | | | | | Shares granted | | 24,820 | | | $ | 66.82 | | | 71,956 | | | $ | 68.96 | | | 9,966 | | | $ | 78.79 | | | Shares vested | | (26,917) | | | $ | 70.55 | | | (23,368) | | | $ | 66.96 | | | (6,807) | | | $ | 58.63 | | | Shares forfeited | | (6,757) | | | $ | 71.14 | | | — | | | | | — | | | | Outstanding nonvested shares, end of each period | | 58,513 | | | $ | 67.91 | | | 67,367 | | | $ | 69.69 | | | 18,670 | | | $ | 70.38 | |
(1) Grant date fair value. (2) Effective with the Orion Divestiture on November 12, 2021, outstanding equity awards were adjusted by a conversion ratio of 1.002342 per one Realty Income share then held.
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| Schedule of stock option activity |
The following table summarizes our stock option activity during the year ended December 31, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Number of stock options | | Weighted average exercise price (1) | | Weighted average remaining contractual term (Years) | | Aggregate intrinsic value | | Outstanding nonvested options, beginning of year | | 315,070 | | | $ | 52.89 | | | | | | | | | | | | | | | | Options exercised | | (262,267) | | | $ | 52.41 | | | | | | | Options forfeited | | (7,424) | | | $ | 58.46 | | | | | | | Outstanding nonvested options, end of each period | | 45,379 | | | $ | 54.75 | | | 5.8 | | $ | 393,710 | |
(1)Grant date fair value. The following table summarizes our stock option activity during the year ended December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Number of stock options | | Weighted average exercise price(1) | | Weighted average remaining contractual term (Years) | | Aggregate intrinsic value | | Outstanding nonvested options, beginning of year | | — | | | | | | | | Options granted (2) | | 709,426 | | | $ | 53.80 | | | | | | Equitable adjustment - Orion Divestiture (3) | | 1,547 | | | | | | | | | Options exercised | | (395,903) | | | $ | 54.54 | | | | | | | Options forfeited | | — | | | | | | | | | Outstanding nonvested options, end of each period | | 315,070 | | | $ | 52.89 | | | 2.4 | | $ | 5,891,639 | |
(1) Grant date fair value. (2) During the year ended December 31, 2021, stock options were granted in connection with the VEREIT merger. (3) Effective with the Orion Divestiture on November 12, 2021, outstanding equity awards were adjusted by a conversion ratio of 1.002342 per one Realty Income share then held.
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