Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Operating Partnership

v2.4.0.8
Equity-Based Compensation of the Operating Partnership (Tanger Properties Limited Partnership [Member])
 6 Months Ended
Jun. 30, 2013
Tanger Properties Limited Partnership [Member]
  
Equity-Based Compensation of the Operating Partnership
Equity-Based Compensation of the Operating Partnership

As discussed in Note 8, the Operating Partnership and the Company have a joint plan whereby equity based and performance based awards may be granted to directors, officers and employees. When common shares are issued by the Company, the Operating Partnership issues corresponding units to the Company based on the current exchange ratio as provided by the Operating Partnership agreement. Based on the current exchange ratio, each unit in the Operating Partnership is equivalent to four common shares of the Company. Therefore, when the Company grants an equity based award, the Operating Partnership treats each award as having been granted by the Operating Partnership.

We recorded equity-based compensation expense in general and administrative expenses in our consolidated statements of operations as follows (in thousands):
 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
Restricted units
 
2013
 
2012
 
2013
 
2012
Restricted units (1)
 
$
2,118

 
$
1,864

 
$
4,020

 
$
4,714

Notional unit performance awards
 
764

 
490

 
1,292

 
979

Options
 
43

 
52

 
87

 
104

Total equity-based compensation
 
$
2,925

 
$
2,406

 
$
5,399

 
$
5,797


(1)
For the six months ended June 30, 2012, includes approximately $1.3 million of compensation expense related to 11,250 units issued related to a restricted share grant that vested immediately upon grant under the terms of the Employment Agreement for Steven B. Tanger, President and Chief Executive Officer of the Company.

The following table summarizes information related to unvested restricted units outstanding as of June 30, 2013:
Unvested Restricted Units
 
Number of units
 
Weighted-average grant date fair value
Unvested at December 31, 2012
 
261,998

 
$
97.56

Granted
 
87,343

 
124.04

Vested
 
(72,350
)
 
89.40

Forfeited
 
(3,000
)
 
102.44

Unvested at June 30, 2013
 
273,991

 
$
108.12



The total value of restricted units vested during the six months ended June 30, 2013 and June 30, 2012, was $9.6 million and $7.9 million, respectively.
As of June 30, 2013, there was $33.8 million of total unrecognized compensation cost related to unvested equity-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 3.3 years.