Company: NSA-PB
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001628280-25-015431
Chunk: 31

Company: National Storage Affiliates Trust
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 31
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 performance. |     | All of our programmatic performance-based LTIP awards are based on TSR performance versus the MSCI US REIT Index and the Peer Group 3-Year Weighted Average TSR. |     | The Company must perform above average as compared to the MSCI US REIT Index and the Peer Group 3-Year Weighted Average TSR in order to achieve target payout on our programmatic performance-based awards. |

We have focused on the Company’s TSR performance relative to the TSR of our peers in the self storage industry because TSR achievement is a particularly useful metric for ensuring that our executives are thinking about the interests of our shareholders as they execute on our business plans.

On July 1, 2024, the Company internalized our PRO structure, which is expected to generate several strategic benefits, including the simplification of our structure and financial reporting, general and administrative expense savings, the enhancement of our customer acquisition strategy, brand flexibility, and the optimization of our operational execution by leveraging the full benefits of our scale and centralized platforms. In recognition of each NEO's efforts in connection with the internalization of our PRO structure, the CNCG Committee approved special one-time LTIP unit awards to the NEOs. These awards were granted on December 2, 2024, with a grant date fair value of $43.13 based upon the closing price of our Common Shares on November 15, 2024, and are 40% time-based and 60% performance-based. The time-based LTIP units will vest on December 2, 2026, subject to the conditions set forth in the LTIP unit award agreements for each NEO. The performance-based LTIP units will cliff vest on December 2, 2025 upon the satisfaction of the following metrics, with one-third of the performance-based LTIP units associated with each metric, and subject to the conditions set forth in the LTIP unit award agreements for each NEO: (1) achievement of certain predetermined annualized recurring general and administrative expense savings, (2) migration of certain properties managed by the Company’s former PROs onto the Company’s management platforms by no later than June 30, 2025, and (3) successful completion of the PRO internalization.

During the vesting period for the performance-based LTIP units, each NEO will be entitled to receive interim distributions with respect to each performance-based LTIP unit at the maximum level equal to 10% of the distributions paid to a holder of an equal number of OP units. Upon vesting, each