Form 4: Apple Hospitality REIT Executive Nelson Knight Reports Share Transactions

Nelson Knight, President of Real Estate & Invest at Apple Hospitality REIT, reports acquisition and disposal of common shares related to the company's 2023 incentive plan and tax obligations.

Summary

• On March 1, 2024, Nelson Knight, President of Real Estate & Invest at Apple Hospitality REIT, reported transactions involving the company's common shares.
• Knight acquired 94,871 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 54,338 restricted common shares as settlement for amounts earned under the company's 2023 incentive plan, which will vest on December 13, 2024.
• Additionally, 42,786 common shares were surrendered to satisfy tax withholding obligations related to the issuance of unrestricted common shares at a price of $16.27.
• Following these transactions, Knight directly owns 910,424 common shares.
• Knight also indirectly owns 304,504 shares through JAMN Limited Partnership, LLP, 37,601 shares through N. Knight Generation Skipping Irrevocable Trust, and 9,837,031 shares in a closely held LLC.
• Knight disclaims beneficial ownership of the reported shares to the extent the shares reported exceed his pecuniary interest in such shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily reports routine transactions related to executive compensation and tax obligations. There are no significant positive or negative implications for the company's performance.

Positives

• The acquisition of shares as part of the 2023 incentive plan suggests that Knight is incentivized to perform well for the company.
• The transactions reflect Knight's compensation and alignment with the company's performance.

Negatives

• The surrender of shares to cover tax obligations could be seen as a minor negative, as it reduces Knight's direct holdings, although it's a standard procedure.

Risks

• There are no specific risks highlighted in this document, as it primarily details share transactions.

Management Comments

• The reporting person disclaims beneficial ownership of the reported shares to the extent the shares reported exceed the reporting person's pecuniary interest in such shares.

Industry Context

This filing is a routine disclosure of insider transactions, which is common for publicly traded companies. It provides transparency into the actions of company executives regarding their holdings of company stock.

Comparison to Industry Standards

• Form 4 filings are standard practice for publicly traded companies, ensuring transparency in insider trading.
• Similar filings are made by executives at comparable REITs like Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK) when they engage in transactions involving their company's stock.
• The details disclosed, such as the number of shares, transaction prices, and reasons for the transaction (e.g., incentive plan settlement, tax obligations), are consistent with industry norms for such filings.

Stakeholder Impact

• The transactions provide transparency to shareholders regarding executive compensation and ownership.

Key Dates