Form 4: Americold Realty Trust Executive Receives Equity Incentive Grants

Samantha L. Charleston, EVP & Chief Human Resources Officer of Americold Realty Trust, was granted OP Profits Units and Performance OP Profits Units on March 8, 2024, under the company's 2017 Equity Incentive Plan.

Summary

• Samantha L. Charleston, EVP & Chief Human Resources Officer of Americold Realty Trust, received grants of Operating Partnership Profit Units (OP Profits Units) and Performance OP Profits Units on March 8, 2024.
• The OP Profits Units, totaling 9,132, will vest ratably on March 8, 2025, 2026, and 2027.
• These units were issued under the Americold Realty Trust 2017 Equity Incentive Plan.
• The Performance OP Profits Units, totaling 13,699, will vest at the end of a 3-year period (Jan 1, 2024 Dec 31, 2026) contingent upon the achievement of 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 in the Operating Partnership, which can then be redeemed for cash or common stock of Americold Realty Trust.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. The vesting schedule and performance-based units suggest a focus on long-term value creation.

Positives

• The equity grants align the executive's interests with those of the shareholders by incentivizing performance through TSR goals.
• The vesting schedule encourages long-term commitment from the executive.

Risks

• The vesting of Performance OP Profits Units is contingent upon achieving a pre-established TSR goal, which may not be met.
• The value of the units is tied to the performance of Americold Realty Trust's common stock, which is subject to market fluctuations.

Future Outlook

The document outlines the terms of equity grants to an executive, incentivizing future performance based on TSR.

Industry Context

Equity grants are a common practice in the REIT industry to align management's interests with those of shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded REITs, such as Prologis (PLD), Digital Realty Trust (DLR), and Simon Property Group (SPG).
• The specific terms of the grants, such as vesting schedules and performance metrics, are tailored to Americold's specific goals and circumstances.
• Comparing the TSR performance target to the MSCI U.S. REIT Index is a common benchmark for evaluating REIT performance.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align management's interests with long-term value creation.
• Employees may be motivated by the company's commitment to incentivizing performance.

Key Dates