Form 4: Agree Realty Corp CFO Peter Coughenour Reports Stock Award and Tax Withholding

Peter Coughenour, CFO of Agree Realty Corp, reports the acquisition of restricted common shares and the withholding of shares for tax obligations.

Summary

• On February 23, 2024, Peter Coughenour, the Chief Financial Officer of Agree Realty Corp, acquired 7,825 common shares.
• These shares were issued as restricted common shares by the Issuer's Compensation Committee of the Board of Directors.
• 2,609 shares will vest on February 23, 2025, 2,608 shares on February 23, 2026, and 2,608 shares on February 23, 2027, contingent upon continued employment.
• Also on February 23, 2024, 699 common shares were withheld by the issuer to cover tax obligations related to the vesting of 1,430 common shares at a price of $57.51.
• Following these transactions, Coughenour directly owns 13,669 common shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The stock award indicates confidence in the CFO's continued contribution and aligns his interests with shareholders. The tax withholding is a routine transaction.

Positives

• The issuance of restricted common shares to the CFO aligns his interests with the long-term performance of the company.
• The vesting schedule incentivizes continued service and commitment from the CFO.

Future Outlook

The vesting schedule of the restricted shares suggests an expectation of continued employment and contribution from the CFO over the next three years.

Industry Context

Stock awards are a common practice in the real estate industry to incentivize and retain key executives. The vesting schedule is typical for such awards.

Comparison to Industry Standards

• Comparing Agree Realty's executive compensation practices with peers like Realty Income (O), National Retail Properties (NNN), and Federal Realty Investment Trust (FRT) shows similar trends in using stock awards with multi-year vesting schedules to align executive interests with shareholder value.
• For instance, Realty Income also grants restricted stock units that vest over several years, contingent on continued employment.
• The amount of shares granted to Peter Coughenour is within the typical range for CFO compensation at similarly sized REITs.

Stakeholder Impact

• Shareholders may view the stock award positively as it incentivizes the CFO to focus on long-term value creation.
• Employees may see the award as a sign of the company's commitment to its leadership team.

Key Dates