Form 4: Americold Realty Trust Executive Acquires Operating Partnership Units

Michael Bryan Verbarendse, EVP & Chief Operating Officer, North America, acquired OP Profits Units and Performance OP Profits Units in Americold Realty Operating Partnership.

Summary

• Michael Bryan Verbarendse, an executive at Americold Realty Trust, acquired OP Profits Units and Performance OP Profits Units on March 8, 2024.
• He obtained 11,416 OP Profits Units that will vest ratably on March 8, 2025, 2026, and 2027.
• He also acquired 17,123 performance-based OP Profits Units, which will vest at the end of a 3-year period (Jan 1, 2024 Dec 31, 2026) contingent upon achieving a pre-established total shareholder return (TSR) goal relative to the MSCI U.S. REIT Index.
• Vested OP Profits Units and Performance OP Profits Units can be converted into common units of limited partnership interest, which can then be redeemed for cash or Americold Realty Trust common stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating alignment of management interests with shareholder value. The sentiment is neutral to positive as it suggests confidence in future performance.

Positives

• The acquisition of OP Profits Units and Performance OP Profits Units aligns the executive's interests with the company's performance and shareholder value.

Future Outlook

The vesting of the Performance OP Profits Units is contingent upon the company's total shareholder return relative to the MSCI U.S. REIT Index over a three-year period, indicating a focus on long-term performance.

Industry Context

The granting of OP Profits Units and Performance OP Profits Units is a common practice in the REIT industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Equity-based compensation, such as OP Profits Units, is a standard practice among publicly traded REITs like Prologis (PLD), Duke Realty (DRE) (now part of Prologis), and Public Storage (PSA).
• These companies often use similar performance metrics, such as total shareholder return (TSR) relative to industry benchmarks, to determine vesting of performance-based equity awards.
• The specific terms and conditions of these awards, such as vesting schedules and performance targets, can vary significantly between companies.

Stakeholder Impact

• Shareholders: The acquisition of performance-based units aims to align executive compensation with shareholder returns.
• Employees: The document does not directly impact other employees, but it reflects the company's compensation structure for executives.

Key Dates