Form 4: Agree Realty Corp CEO Joey Agree Reports Acquisition and Disposal of Shares

Joey Agree, President & CEO of Agree Realty Corp, reports the acquisition of restricted common shares and disposal of shares to cover tax obligations.

Summary

• On February 23, 2024, Joey Agree, the President & CEO of Agree Realty Corp, acquired 31,299 restricted common shares.
• These shares were issued by the Issuer's Compensation Committee of the Board of Directors.
• 10,433 of these shares will vest on February 23, 2025, February 23, 2026, and February 23, 2027, respectively, contingent on continued employment.
• Additionally, Mr. Agree acquired 20,585 restricted common shares upon vesting of performance shares.
• 6,862 of these shares vested immediately on February 23, 2024, with the remaining shares vesting on February 23, 2025 and February 23, 2026.
• Mr. Agree also disposed of 24,293 common shares at a price of $57.51 to cover tax withholdings due upon the vesting of 55,616 common shares.
• Following these transactions, Mr. Agree directly owns 588,994 common shares and indirectly owns 1,228 common shares through his children.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of shares suggests confidence, while the disposal is a standard tax-related transaction.

Positives

• The acquisition of restricted common shares and performance shares indicates confidence in the company's future performance.

Negatives

• The disposal of shares to cover tax obligations, while a normal occurrence, slightly reduces the CEO's direct holdings.

Risks

• The vesting of restricted shares is contingent on continued employment, creating a potential risk if the executive leaves the company.

Future Outlook

The vesting schedule of the restricted shares incentivizes continued service by the CEO.

Industry Context

Insider transactions are common and closely monitored, providing insights into management's perspective on the company's valuation and future prospects. The vesting of performance shares suggests the CEO has met certain performance targets set by the board.

Comparison to Industry Standards

• Executive compensation packages often include restricted stock units (RSUs) and performance-based equity awards.
• The vesting schedules are typical for such awards, aligning executive interests with long-term shareholder value.
• Similar REITs such as Realty Income (O) and Simon Property Group (SPG) also utilize equity-based compensation to incentivize their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders, reflecting standard executive compensation practices.
• Employees may view the vesting of performance shares as a positive sign of company performance.

Key Dates