CIM Real Estate Finance Trust Grants Shares to Independent Director

Director receives share-based compensation as part of the company’s annual equity incentive plan.

October 01, 2024

CIM Real Estate Finance Trust Grants Shares to Independent Director

Director receives share-based compensation as part of the company’s annual equity incentive plan.

CIM Real Estate Finance Trust, a non-traded real estate investment trust (REIT), has awarded shares of restricted common stock to one of its independent directors, as disclosed in a recent filing with the Securities and Exchange Commission. The transaction took place on October 1, 2024, and is part of the company's annual retainers to compensate its independent directors.

The director, Thomas Patrick Duncan, was granted 13,136 shares under the company's 2022 Equity Incentive Plan. The stock award was issued at no cost to the director, and these shares are set to vest over a one-year period, becoming fully vested on October 1, 2025. Following this grant, Duncan holds a total of 57,523 shares in the REIT, all in a direct ownership capacity.

Incentivizing Long-Term Performance

CIM Real Estate Finance Trust has utilized share-based compensation as a method to align the interests of its leadership with those of its stakeholders. The granting of restricted stock helps ensure that the company’s decision-makers maintain a vested interest in its performance and long-term growth, fostering better corporate governance and a focus on value creation for shareholders.

Strategic Compensation Approach

The stock grant aligns with the overall compensation strategy of the REIT, which continues to use equity incentives to attract and retain key individuals. These forms of compensation have become a common practice among REITs, allowing directors to participate directly in the company's growth and financial success.

As of the filing, there were no indications of any additional transactions involving derivative securities or indirect ownership by the director. The company's decision to continue this compensation model reflects broader trends in corporate governance and executive remuneration.