Form 4: Americold Realty Trust Executive Receives Equity Incentive Plan Grants

EVP, CFO & Treasurer of Americold Realty Trust, Jay Wells, receives OP Profits Units and Performance OP Profits Units under the company's 2017 Equity Incentive Plan.

Summary

• On March 14, 2025, Jay Wells, EVP, CFO & Treasurer of Americold Realty Trust, was granted OP Profits Units and Performance OP Profits Units.
• The OP Profits Units will vest ratably on March 14, 2026, 2027, and 2028.
• 29,935 OP Profits Units were granted.
• 14,967 Performance OP Profits Units will be determined based upon a comparison of the Company's total shareholder return ('TSR') on a relative basis to the MSCI U.S. REIT Index at the end of the applicable performance period (Jan 1, 2025 Dec 31, 2027).
• 29,935 Performance OP Profits Units will be determined based on the Company's adjusted funds from operations ('AFFO') during the applicable performance period (Jan 1, 2025 Dec 31, 2027).
• The Performance OP Profits Units will vest, if at all, at the end of the 3-year period contingent upon the achievement of the pre-established TSR and AFFO goals.

Sentiment

Score: 7

Explanation: The document is a routine disclosure of equity grants, which is generally viewed positively as it aligns management's interests with shareholders. The use of performance-based metrics further enhances the positive sentiment.

Positives

• The equity grants align the executive's interests with those of the shareholders by incentivizing performance based on TSR and AFFO.

Risks

• The vesting of the Performance OP Profits Units is contingent upon achieving pre-established TSR and AFFO goals, which may not be met.

Future Outlook

The document outlines future vesting dates for the OP Profits Units and the performance period for the Performance OP Profits Units, indicating a focus on long-term performance and alignment with shareholder interests.

Industry Context

Equity grants are a common practice in the REIT industry to incentivize executives and align their interests with those of shareholders. The use of TSR and AFFO as performance metrics is also typical for REITs.

Comparison to Industry Standards

• Companies like Prologis (PLD) and Duke Realty (DRE) (now part of Prologis) also use equity-based compensation plans with performance metrics tied to shareholder return and operational performance.
• The vesting schedules and performance periods are generally in line with industry standards for executive compensation in REITs.
• The specific number of units granted and the performance targets would need to be compared to peer companies to assess the competitiveness of the compensation package.

Stakeholder Impact

• Shareholders: The equity grants aim to align management's interests with shareholder value creation.
• Employees: The grants may have a positive impact on employee morale by demonstrating a commitment to rewarding performance.

Key Dates