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

EVP & Chief Investment Officer Russell Scott Henderson receives OP Profits Units and Performance OP Profits Units under Americold Realty Trust's 2017 Equity Incentive Plan.

Summary

• Russell Scott Henderson, EVP & Chief Investment Officer of Americold Realty Trust, received OP Profits Units and Performance OP Profits Units on March 14, 2025, under the company's 2017 Equity Incentive Plan.
• He received 11,225 OP Profits Units that will vest ratably on March 14, 2026, 2027, and 2028.
• He also received 5,613 Performance OP Profits Units tied to the company's total shareholder return (TSR) relative to the MSCI U.S. REIT Index between January 1, 2025, and December 31, 2027.
• An additional 11,225 Performance OP Profits Units were granted, linked to the company's adjusted funds from operations (AFFO) during the same performance period.
• Vested 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 is neutral in tone, simply reporting the grant of equity compensation. The positive aspect is the alignment of executive interests with shareholder value through performance-based metrics.

Positives

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

Risks

• The value of the performance-based units is contingent on the company achieving specific TSR and AFFO targets.
• The executive's ability to convert and redeem the units depends on the company's financial condition and stock performance.

Future Outlook

The document outlines future vesting dates for the granted units, contingent on continued service and achievement of performance goals related to TSR and AFFO.

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 units tied to TSR and AFFO are designed to reward executives for driving shareholder value and operational efficiency.

Comparison to Industry Standards

• Companies like Prologis (PLD) and Duke Realty (DRE) (now part of Prologis) also use equity-based compensation, including performance-based units, to incentivize their executives.
• The specific metrics and vesting schedules vary, but the overall goal is to align executive compensation with shareholder returns and operational performance.
• The use of TSR relative to the MSCI U.S. REIT Index is a common benchmark for measuring performance in the REIT sector.

Stakeholder Impact

• Shareholders: The equity grants aim to align executive incentives with shareholder value creation.
• Employees: The grants may serve as a motivation for other employees, demonstrating the company's commitment to rewarding performance.

Key Dates