REITs Executive Compensation Guide

Most Prevalent Cash Bonus Metrics

Same-Property NOI

32%

31%

Leverage

Core/ Normalized FFO

30%

27%

AFFO

23%

Acquisitions

22%

FFO

EBITDA/Net Income

21%

18%

Cost Controls

15%

Occupancy

15%

Leasing

14%

Revenue

As noted above, for performance-based equity compensation, the most common performance metric is relative TSR. REITs generally utilize an asset class-based peer group to assess their relative performance. Non-TSR metrics, such as FFO, NOI and ESG metrics, are increasing in prevalence as REITs try to balance maximizing both stockholder value and operational success, which may not always be captured in the REIT’s stock price.

15 | 2023 Guide to REIT Executive Compensation