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. FFO, NOI and ESG metrics continue to be the most prevalent non-TSR metrics, as REITs try to balance maximizing both stockholder value and operational success, which may not always be captured in the REIT’s stock price. Most Prevalent Cash Bonus Metrics Core/Normalized FFO ESG (Individual) Same-Property NOI Leverage AFFO Cost Controls ESG (Corporate) Revenue EBITDA/Net Income FFO Occupancy Acquisitions Leasing 33% 32% 31% 20% 25% 20% 19% 19% 19% 18% 16% 14% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% 11 | 2024 Guide to REIT Executive Compensation
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