5th Nov 2024 13:07
(Alliance News) – Supermarket Income REIT PLC said Tuesday that it has changed a management fee agreement with its investment adviser, with the sum now tied to market capitalisation instead of net asset value.
The change, which comes into effect on July 1, will lead to "material cost savings to the company".
The London-listed equity was up 0.4% at 70.58 pence Tuesday afternoon, giving it a market value of GBBP879.6 million.
Atrato Capital Ltd, Supermarket Income REIT's investment adviser, will retain the fee thresholds and rates currently applied in the updated agreement.
Atrato Capital fees will range from 0.95% for a threshold of market capitalisation basis of up to GBP500 million to 0.4% in the highest threshold which assumes a market cap of GBP2 billion.
Supermarket Income REIT, a London-based real estate investment trust dedicated to investing in grocery properties, will also transfer its outsourced alternative investment fund manager, company secretarial and payments processing functions to Atrato Capital, subject to a separate fee.
The company said the change in the calculation of fees and the transfer of functions will deliver savings in material costs.
Chair of Supermarket Income REIT Nick Hewson said: "We have worked closely with the investment adviser to identify ways to deliver both material cost savings. Once documented, these initiatives are expected to enhance earnings and are an important step towards our goal of having one of the lowest EPRA cost ratios in the UK REIT sector."
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights reserved.