UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
Date of Report (Date of earliest event reported): August 21, 2015
Monogram Residential Trust, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Maryland |
|
001-36750 |
|
20-5383745 |
(State or other jurisdiction of |
|
(Commission File |
|
(I.R.S. Employer |
5800 Granite Parkway, Suite 1000
Plano, Texas
75024
(Address of principal executive offices)
(Zip Code)
(469) 250-5500
(Registrants telephone number, including area code)
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of New Chief Financial Officer
On August 24, 2015, Monogram Residential Trust, Inc. (which may be referred to herein as the Company, Registrant, we, our or us) announced that Daniel Swanstrom, II has been appointed to serve as Executive Vice President and Chief Financial Officer-Elect of the Company effective as of October 26, 2015, and as Chief Financial Officer effective after the Company files its Quarterly Report on Form 10-Q for the period ended September 30, 2015, with the Securities and Exchange Commission (SEC).
Mr. Swanstrom, age 38, has served in a variety of capacities at Morgan Stanley since 2006, most recently as Executive Director in the Real Estate Investment Banking Division. During his nine-year tenure at Morgan Stanley, Mr. Swanstrom has managed the execution of public and private capital raises and mergers and acquisitions in excess of $25 billion.
From 2002 to 2004, Mr. Swanstrom was at AEW Capital Management, a real estate investment manager, most recently as an Assistant Vice President. From 1999 to 2002, Mr. Swanstrom was in the Assurance and Advisory Services Group at Deloitte & Touche LLP, most recently as a senior accountant. Mr. Swanstrom received a Bachelor of Science degree in Accounting from Boston College and a Masters of Business Administration degree from the University of North Carolina at Chapel Hill. Mr. Swanstrom is also a certified public accountant (inactive).
Appointment of Separate Chief Accounting Officer
In connection with the foregoing, effective October 26, 2015, Howard S. Garfield will serve as Senior Vice President Planning, Chief Accounting Officer, Treasurer and Assistant Secretary of the Company. Mr. Garfield will also remain Chief Financial Officer until the Company files its Quarterly Report on Form 10-Q for the period ending September 30, 2015, with the SEC.
Executive Compensation
Mr. Swanstroms annualized compensation for 2015 will include (a) a base salary of $325,000 (which will be paid on a pro rata basis to reflect his employment commencing October 26, 2015); (b) a target cash incentive compensation of $162,500; and (c) a target long-term incentive award (which will be subject to the Companys Second Amended and Restated Incentive Award Plan) of 90% of his 2015 base salary plus 2015 target cash incentive compensation. Because Mr. Swanstrom will commence employment in late October 2015, his cash incentive compensation and long-term incentive award will be determined by the compensation committee of the board of directors in its discretion taking into account the short performance period and other relevant factors. Mr. Swanstrom will also receive a housing allowance of $6,500 per month for six months commencing on November 1, 2015, and will receive a one-time award of a number of restricted stock units (RSUs), equal to $150,000 in value divided by the closing price of our shares of common stock on October 26, 2015, the date Mr. Swanstrom commences his employment with us. The RSUs will be issued pursuant to our standard employee RSU award agreement with a three-year vesting schedule.
Effective November 1, 2015, Mr. Garfields annualized compensation for the remainder of 2015 will include a base salary of $275,000 with target cash incentive compensation of 50% of his base salary and a target long-term incentive award (subject to the terms of the Companys Second Amended and Restated Incentive Award Plan) of 70% of his 2015 base salary plus target 2015 cash incentive compensation.
Swanstrom Severance Agreement
On August 21, 2015, we and Monogram Residential OP LP, the Companys operating partnership (the OP), entered into a severance agreement with Mr. Swanstrom that will be effective October 26, 2015 (the Severance Agreement) in our standard form, which is substantially the same as those entered into with our other executive officers and disclosed on our Current Report on Form 8-K filed with the SEC on December 16, 2014.
Specifically with respect to Mr. Swanstrom, if his employment is terminated by the Company without cause or by Mr. Swanstrom for good reason, we will pay Mr. Swanstrom (i) a Pro-Rated Bonus equal to the pro rata portion of any cash incentive compensation which would have been earned by him during such year of termination had he remained employed the entire year and (ii) an amount equal to the product of (1) a Severance Multiple, equal to 2.25, and (2) the sum of (a) his annual base salary plus (b) the average of the annual cash incentive compensation received by Mr. Swanstrom each year during the last three years of his employment with the Company (provided that for 2015 the annual cash incentive compensation received by Mr. Swanstrom shall be deemed to be 100% of his annual base salary).
The foregoing summary is subject to, and qualified in its entirety by, the full text of the Severance Agreement, which will be filed as an exhibit to our Quarterly Report on Form 10-Q for the period ending September 30, 2015.
Amendment to Garfield Severance Agreement
On August 21, 2015, we and the OP amended our severance agreement with Mr. Garfield that will be effective October 26, 2015 (the Amendment), to provide that the following will not permit Mr. Garfield to resign for good reason as defined in his severance agreement dated December 15, 2014: the appointment of Mr. Swanstrom, the new title, role and responsibilities for Mr. Garfield, and the new base pay for Mr. Garfield (described above). In return, we agreed to immediately vest all outstanding RSUs that Mr. Garfield has received to date. However, as a condition of such immediate vesting, and for a period of one year following the date of such accelerated vesting, Mr. Garfield is generally precluded from selling, transferring, or otherwise disposing in any manner any of the shares of stock transferred in settlement of such vested RSUs, and that for an additional one year period, Mr. Garfield is generally precluded from selling, transferring, or otherwise disposing in any manner of one-half of the shares of stock transferred to Mr. Garfield in settlement of such vested RSUs.
The foregoing summary is subject to, and qualified in its entirety by, the full text of the Amendment, which will be filed as an exhibit to our Quarterly Report on Form 10-Q for the period ending September 30, 2015.
Item 7.01. Regulation FD.
On August 24, 2015, the Company issued a press release in connection with the foregoing events. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Item 7.01, including Exhibit 99.1, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall the information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
Exhibit No. |
|
Description |
99.1 |
|
Press Release dated August 24, 2015 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
MONOGRAM RESIDENTIAL TRUST, INC. |
|
(Registrant) |
|
|
August 24, 2015 |
/s/ Daniel J. Rosenberg |
|
Daniel J. Rosenberg |
|
Senior Vice President, General Counsel and Secretary |
Exhibit 99.1
|
|
IR Contact: |
Stephen Swett | ||
(469) 250-5638 | ||
ir@monogramres.com | ||
| ||
Media Contact: | ||
Samantha DeVito | ||
(214) 269-4406 | ||
sdevito@jacksonspalding.com |
MONOGRAM RESIDENTIAL TRUST, INC. ANNOUNCES DAN SWANSTROM
AS CHIEF FINANCIAL OFFICER
-Howard Garfield Remains Chief Accounting Officer-
PLANO, Texas (August 24, 2015) Monogram Residential Trust, Inc. (NYSE: MORE), (Monogram or the Company), an owner, operator and developer of luxury apartment communities in select markets across the United States, today announced the appointment of Dan Swanstrom as Executive Vice President and Chief Financial Officer-Elect, effective on October 26, 2015. Swanstrom will succeed Howard Garfield, who will remain with the Company as Senior Vice President Planning, Treasurer, Chief Accounting Officer, and Assistant Secretary. Mr. Garfield will also serve as interim Chief Financial Officer until the Company files its quarterly report on Form 10-Q for the third quarter with the SEC. Mr. Garfield will assist Mr. Swanstrom with the transition to Chief Financial Officer.
With his extensive investment banking experience, Dan brings a deep understanding of capital markets, strategic transactions, and corporate finance. Having advised the Company on its listing on the NYSE, Dan joins us well versed on our portfolio and strategy and will add additional depth to our management team, stated Mark T. Alfieri, Chief Executive Officer, President and Chief Operating Officer of Monogram. Mr. Alfieri continued, We are grateful to Howard for his six years of service as Chief Financial Officer of the Company and leadership through the listing process. Additionally, we are pleased that Howard will continue with Monogram in a key role, working closely with Dan during and after the transition. With this enhanced management team, we are well positioned to create long term shareholder value and excited for the future.
Mr. Swanstrom joins Monogram following a successful nine-year career at Morgan Stanley, most recently serving as Executive Director in the Real Estate Investment Banking Group. During his tenure at Morgan Stanley, Swanstrom has managed the execution of public and private capital raises and mergers and acquisitions in excess of $25 billion.
With its young portfolio of high-quality apartment communities and its substantial growth trajectory, this is an exciting time to be joining Monogram, Mr. Swanstrom said. I look forward to working with Mark, Howard, and the rest of the management team and contributing to Monograms continued success.
About Monogram
Monogram Residential Trust, Inc. (Monogram), is a fully integrated self-managed real estate investment trust that invests in, develops and operates high quality multifamily communities offering location and lifestyle amenities. Monogram invests in stabilized operating properties and properties in various phases of development, with a focus on communities in select markets across the United States. Monograms portfolio includes investments in 54 multifamily communities in 11 states comprising 15,421 apartment homes.
Forward Looking Statements
This press release contains forward-looking statements relating to the business and financial outlook of Monogram Residential Trust, Inc. that are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. Statements regarding the following subjects may be impacted by a number of risks and uncertainties such as our business strategy; our ability to obtain future financing arrangements; estimates relating to our future distributions; our understanding of our competition; market trends; and projected capital expenditures. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this document, and other factors described in the Risk Factors section of Monogram Residential Trust, Inc.s Annual Report on Form 10-K for the year ended December 31, 2014 and in subsequent filings with the SEC. Forward-looking statements in this press release speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
# # #