Company: BHR-PD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001574085-25-000130
Chunk: 162

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 162
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 from time to time. The award agreements provide for the grant of a target number of Performance LTIP units that will be settled in common units of Braemar OP, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. The performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the three-year performance period. The performance criteria are based on performance conditions under the relevant literature. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the applicable measurement date fair value of the award. The grant date fair value of the award may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period. As of September 30, 2025, there are 353,000 unvested Performance LTIP units.

As of September 30, 2025, there are approximately 429,000 issued and outstanding LTIP and Performance LTIP units. All LTIP and Performance LTIP units, other than approximately 353,000 Performance LTIP units issued in March 2023, had reached full economic parity with, and are convertible into, common units. 

The following table presents the redeemable noncontrolling interests in Braemar OP (in thousands) and the corresponding approximate ownership percentage of our operating partnership:September 30, 2025December 31, 2024Redeemable noncontrolling interests in Braemar OP (in thousands)$18,942 $29,964 Adjustments to redeemable noncontrolling interests (1) (in thousands)$2,330 $1,324 Ownership percentage of operating partnership6.91 %8.05 %____________________________________(1)    Reflects the excess of the redemption value over the accumulated historical cost.We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Net (income) loss attributable to redeemable noncontrolling interests in operating partnership$607 $124 $2,358 $1,747 Distributions declared to holders of common units, LTIP units and Performance LTIP units$271