Form 4: Americold Realty Trust Executive Receives Equity Incentive Grants

Samantha L. Charleston, EVP & Chief Human Resources Officer of Americold Realty Trust, received grants of Operating Partnership Profits Units and Performance-based OP Profits Units on March 14, 2025, under the company's 2017 Equity Incentive Plan.

Summary

• Samantha L. Charleston, an executive at Americold Realty Trust, received OP Profits Units and Performance OP Profits Units on March 14, 2025.
• The OP Profits Units will vest ratably on March 14, 2026, 2027, and 2028.
• 11,225 OP Profits Units were granted.
• The Performance OP Profits Units payout will be determined based on the company's total shareholder return (TSR) relative to the MSCI U.S. REIT Index and adjusted funds from operations (AFFO) between January 1, 2025, and December 31, 2027.
• 5,613 Performance OP Profits Units are tied to TSR performance.
• 11,225 Performance OP Profits Units are tied to AFFO performance.
• Vesting of the Performance OP Profits Units is contingent upon achieving pre-established TSR and AFFO goals at the end of the 3-year period.
• 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 common stock.

Sentiment

Score: 7

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

Positives

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

Risks

• The vesting of the Performance OP Profits Units is contingent on achieving specific TSR and AFFO goals, 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 vesting schedule and performance metrics for the granted equity, indicating a focus on long-term shareholder value and operational performance.

Industry Context

Equity grants are a common practice in the REIT industry to incentivize executives and align their interests with those of shareholders. Performance-based equity further encourages executives to achieve specific financial and operational goals.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded REITs, such as Prologis (PLD) and Duke Realty (DRE) prior to its acquisition by Prologis.
• These companies often use metrics like FFO (Funds From Operations) growth, TSR, and occupancy rates as key performance indicators for executive compensation.
• The vesting schedules and performance targets are typically designed to be challenging but achievable, aligning executive incentives with long-term shareholder value creation.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align executive compensation with company performance.
• Employees may be motivated by the company's commitment to incentivizing its executives.

Key Dates