Form 4: Apple Hospitality Director Converts DSUs to Shares

Apple Hospitality REIT Director Hugh Redd converted 9,286 Deferred Stock Units into common shares and received 61 new DSUs through dividend equivalent rights.

Summary

• Director Hugh Redd acquired 9,286 common shares of Apple Hospitality REIT, Inc. on January 1, 2026.
• These shares were issued as settlement for previously awarded Deferred Stock Units (DSUs) under the company's Non-Employee Director Deferral Program and 2014 Omnibus Incentive Plan, based on a voluntary elected payment date.
• Each DSU is economically equivalent to one share of Common Stock.
• Redd also acquired 61 Deferred Stock Units on January 1, 2026, granted pursuant to dividend equivalent rights on previously awarded DSUs.
• The per share value for the acquired DSUs was $12.06, based on the closing price on January 2, 2026.
• Following these transactions, Redd directly beneficially owns 147,540 common shares and 24,249 Deferred Stock Units.

Sentiment

Score: 5

Explanation: The filing is a routine disclosure of an insider transaction, reflecting planned compensation events without indicating any significant positive or negative operational or financial news for the company.

Positives

• The conversion of Deferred Stock Units into common shares indicates a planned and structured compensation event for a director.
• The grant of 61 additional Deferred Stock Units through dividend equivalent rights demonstrates ongoing participation in the company's equity compensation plans.

Negatives

• No specific negative aspects are identified in this routine insider transaction filing.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

This filing does not contain specific forward-looking statements or guidance beyond the nature of the Deferred Stock Units being generally payable on an elected date or upon specific events like death, disability, or change in control.

Industry Context

This Form 4 filing details a routine insider transaction for a director of Apple Hospitality REIT, Inc., a real estate investment trust. Such transactions are common across all industries as part of executive and director compensation plans, particularly for non-employee directors who often receive equity-based awards like Deferred Stock Units. It does not provide broader industry trends or competitive insights.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as part of non-employee director compensation is a common practice across publicly traded companies, aligning with typical corporate governance and compensation structures in the REIT sector and broader market.
• The settlement of DSUs into common shares upon a voluntary elected payment date is a standard feature of many long-term incentive plans, providing directors with equity ownership while deferring taxation until settlement.

Corporate Governance

Related Party Transactions

• The transactions involve a director of the company and are part of a pre-existing, disclosed compensation plan (Non-Employee Director Deferral Program and 2014 Omnibus Incentive Plan). While technically a transaction with a 'related party' (an insider), it is a standard, routine compensation event rather than an unusual related party dealing.

Stakeholder Impact

• Shareholders: Minimal direct impact. The issuance of common shares from DSU settlement represents a planned dilution, but it's part of ongoing equity compensation and generally accounted for in financial models.

Next Steps

• The Deferred Stock Units credited under the Deferral Plan are generally payable on the earlier of the date or event elected by the reporting person, or upon death, disability, or change in control as defined under the Deferral Plan.

Key Dates

Keywords

Apple Hospitality REIT, APLE, Hugh Redd, Form 4, Insider Transaction, Deferred Stock Units, Common Shares, Director Compensation, Equity Compensation, SEC Filing