15 Jun '12, 9am

REIT Fee Structure–Are they rewarding investors or the sponsors

REIT Fee Structure–Are they rewarding investors or the sponsors

Managers don’t just get a single base fee to cover every thing they do Many layers of fees on top of base fees Why do some REIT managers charge project management fees while others do not Analysts and some industry players say a structure that rewards boosting revenue, promote acquisitions Analyst say that the performance fees should be pegged to share price and dividend per share performance Cambridge and Starhill Global pegged their performance fees to their relative performance of their shares versus some benchmark Ascendas REIT and Aims Amp link their performance fees to the growth of their dividend per share (DPU) The overall fee structure of REITs promotes asset growth bias. Since base fee, which is usually the largest fee component, depends on a percentage of AUMs, the larger the AUMs the higher the fees

Full article: http://www.investmentmoats.com/money-management/reit/reit...

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REIT Fee Structure–Are they rewarding investors...

thefinance.sg 15 Jun '12, 12pm

REIT Fee Structure–Are they rewarding investors or the sponsors by Drizzt on June 15, 2012 The chatter since the KREIT deb...