Form 4: Apple Hospitality REIT Executive Chairman, Glade M. Knight, Reports Changes in Beneficial Ownership

Glade M. Knight, Executive Chairman of Apple Hospitality REIT, reports acquisition and disposal of common shares due to incentive plan settlement and tax obligations.

Summary

• On March 1, 2024, Glade M. Knight, Executive Chairman of Apple Hospitality REIT, reported changes in beneficial ownership of the company's common shares.
• Knight acquired 44,308 unrestricted common shares at a price of $16.27 per share as settlement for amounts earned under the company's 2023 incentive plan.
• He also acquired 25,377 restricted common shares as settlement for amounts earned under the 2023 incentive plan; these shares are restricted and cannot vest until December 13, 2024.
• Additionally, 7,841 common shares were surrendered to satisfy tax withholding obligations related to the issuance of unrestricted common shares.
• Following these transactions, Knight directly owns 626,990 common shares and indirectly owns 268,858 shares through his spouse and 9,837,031 shares through a closely held LLC.
• Knight disclaims beneficial ownership of the reported shares held in the closely held LLC to the extent the shares reported exceed his pecuniary interest in such shares.

Sentiment

Score: 6

Explanation: Neutral sentiment as the filing primarily reports routine transactions related to executive compensation and tax obligations. There are no explicit positive or negative indicators for the company's overall performance.

Positives

• The acquisition of shares through the incentive plan suggests confidence in the company's future performance.

Negatives

• The surrender of shares to cover tax obligations could be seen as a minor dilution of holdings.

Risks

• The restricted shares not vesting until December 13, 2024, introduces a time-based element of uncertainty.

Future Outlook

The document does not contain explicit forward-looking statements, but the incentive plan settlement suggests an expectation of continued performance.

Industry Context

This filing is a routine disclosure related to executive compensation and ownership, common in the REIT sector. It reflects standard practices for aligning management interests with shareholder value.

Comparison to Industry Standards

• Executive compensation in the REIT industry often includes stock-based awards to align management's interests with those of shareholders.
• Similar REITs, such as Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK), also utilize stock-based compensation as part of their executive pay packages.
• The vesting schedules and performance metrics associated with these awards are typically disclosed in SEC filings and are subject to shareholder scrutiny.

Stakeholder Impact

• The transactions have a minor impact on shareholders due to the change in ownership, but the overall effect is likely negligible.

Key Dates