Life Science REIT has lowered the fees on its agreement with investment adviser Ironstone Asset Management.
Beginning 1 April, the fee will be calculated based on the lower of net asset value and the average market capitalisation for the quarter. The fee had previously been calculated solely on NAV.
Meanwhile, the annual advisory fee rate has been lowered on assets up to £500m, to 1% from 1.1%.
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There will be a transition period for the new arrangement lasting until the end of 2027. During the period, the fee calculation will have a floor of no lower than 70%.
Ironside will no longer be required to acquire the REIT’s shares as part of the agreement.
In a stock exchange announcement, the board said this would result in £1m per year savings for the trust.
Life Science REIT shares currently trade at a 39.17% discount to NAV, according to the AIC.