Form 4: Chicago Atlantic Real Estate Finance Executive Awarded Restricted Stock

John Mazarakis, Executive COB of Chicago Atlantic Real Estate Finance, was awarded 43,655 restricted shares of common stock on April 1, 2024, under the company's 2021 Omnibus Incentive Plan.

Summary

• On April 1, 2024, John Mazarakis, Executive COB of Chicago Atlantic Real Estate Finance, Inc. (REFI), was awarded 43,655 restricted shares of common stock.
• The award was granted under the Chicago Atlantic Real Estate Finance, Inc. 2021 Omnibus Incentive Plan.
• The restricted shares will vest over a three-year period, with one-third vesting after 12, 24, and 36 months, respectively.
• Following the transaction, Mr. Mazarakis directly owns 372,709 shares of common stock.
• Mr. Mazarakis also indirectly owns 5,000 shares through his spouse and 31,524 shares through ownership of interests in Joppa Seasoning, LLC, but disclaims beneficial ownership except to the extent of his pecuniary interest.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of restricted stock is a standard practice and aligns management's interests with shareholders. The vesting schedule promotes long-term commitment.

Positives

• The granting of restricted stock aligns the executive's interests with those of the shareholders.
• The three-year vesting schedule encourages long-term commitment from the executive.

Industry Context

The granting of stock options and restricted stock is a common practice in the real estate finance industry to incentivize executives and align their interests with those of shareholders. This is a standard compensation practice.

Comparison to Industry Standards

• Comparing the vesting schedule and amount of restricted stock to similar companies in the REIT sector would provide a better understanding of whether this grant is in line with industry norms.
• Companies like Blackstone Mortgage Trust (BXMT) and Starwood Property Trust (STWD) also utilize equity-based compensation, and their practices could serve as benchmarks.

Stakeholder Impact

• Shareholders may view the granting of restricted stock positively as it aligns management's interests with the company's long-term performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates