REIT Fee Structure 2 iCim4

The Edge has more coverage on REITs restructuring which we talk about in June. (See article here)

In the last article, it talks about having REITs pegging their fees to performance of share price and dividend per share, which Cambridge, Starhill Global, Ascendas REIT and Aims Amp is doing.

This week’s focus centers on the opinion of Patrick Lecomte, the executive director of ESSEC Business School’s Advance Master in Financial Techniques and Financial Engineering.

Two things that concern international investors about Singapore REITs

There are two things that most concern international investors about S-REITs.

The first is whether the fees that REITs pay their external managers properly incentivize the managers to create value for investors.

The other bugbear is that S-REITs are often backed by a major property companies and there are frequent “related party transactions” between them.

It is a huge topic for foreign investors in Asia because …