Form 4: Apple Hospitality REIT Director Hugh Redd Reports Changes in Beneficial Ownership

Director Hugh Redd reports acquisition of deferred stock units and dividend equivalent rights in Apple Hospitality REIT.

Summary

• On May 31, 2024, Director Hugh Redd acquired 1,991 deferred stock units under the Apple Hospitality REIT, Inc. Amended and Restated Non-Employee Director Deferral Program.
• These units are economically equivalent to common shares and were granted under the 2024 Omnibus Incentive Plan, including voluntary deferred compensation.
• Additionally, 388 deferred stock units were granted pursuant to dividend equivalent rights on previously awarded units.
• The price of the deferred stock units was $14.44.
• Following these transactions, Redd directly owns 25,700 deferred stock units and 125,223 common shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine disclosure of stock unit acquisitions, which doesn't inherently indicate positive or negative sentiment.

Positives

• The acquisition of deferred stock units by a director may signal confidence in the company's future performance.

Future Outlook

The deferred stock units are generally payable in the form elected or provided under the Deferral Plan on the earlier of (i) the date or event elected by the reporting person, or (ii) upon death, disability or change in control as defined under the Deferral Plan.

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders. These filings are closely watched by investors to gauge sentiment and potential future actions of key personnel.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units to align the interests of directors with those of long-term shareholders.
• The specific terms of the Apple Hospitality REIT's Amended and Restated Non-Employee Director Deferral Program would need to be compared to similar programs at peer REITs to assess its competitiveness and alignment with industry best practices.
• Companies like Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK) also utilize stock-based compensation for their directors, and a comparison of the vesting schedules and performance metrics would provide further context.

Stakeholder Impact

• The acquisition of deferred stock units by a director can be viewed positively by shareholders as it aligns the director's interests with the long-term performance of the company.

Key Dates