Form 4: Mid America Apartment Communities Director Reports Phantom Stock Transaction

Sheila K. McGrath, a director of Mid America Apartment Communities Inc., reported the acquisition of phantom stock equivalent to 1,122 shares of common stock on May 20, 2025.

Summary

• On May 21, 2025, a Form 4 filing was submitted to the SEC by Kellye Clouse on behalf of Sheila K. McGrath, a director of Mid America Apartment Communities Inc.
• The report details a transaction on May 20, 2025, where McGrath acquired 1,122 shares of phantom stock at a price of $160.35, with each share being the economic equivalent of one share of common stock.
• Following the transaction, McGrath beneficially owns 1,934.219 shares of phantom stock.
• The phantom stock is payable in two equal annual installments beginning within 90 days following the calendar year in which McGrath ceases to be a director, and can be settled in cash or common stock at her election.
• A power of attorney was executed on September 25, 2024, granting Robert J. DelPriore, Leslie Wolfgang, and Kellye Clouse the authority to execute Forms 3, 4, and 5 on McGrath's behalf.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of phantom stock suggests confidence in the company's future performance, but it's a routine transaction.

Positives

• The acquisition of phantom stock aligns the director's interests with those of the shareholders, as the value is tied to the company's common stock performance.

Future Outlook

The phantom stock is payable in two equal annual installments beginning within 90 days following the calendar year in which the reporting person ceases to serve as a director, in cash or common stock, at the election of the reporting person.

Industry Context

Phantom stock grants are a common form of executive compensation in the real estate industry, aligning management's interests with shareholder value by linking payouts to the company's stock performance.

Comparison to Industry Standards

• Equity compensation practices vary across the REIT sector, but phantom stock is a relatively common tool.
• Companies like Equity Residential (EQR) and AvalonBay Communities (AVB) also utilize long-term incentive plans that include performance-based equity awards.
• The specific terms of phantom stock plans, such as vesting schedules and payout methods, can differ significantly between companies.

Stakeholder Impact

• The acquisition of phantom stock by a director can positively influence shareholder sentiment by aligning management's interests with the company's long-term success.

Key Dates

Keywords

Form 4, phantom stock, director, MAA, Mid America Apartment Communities Inc., beneficial ownership, SEC filing