Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) intends to amend its investment advisory agreement with Atrato Capital Limited (LSE:CAPD) to shift the basis of its management fee calculation from net asset value to market capitalisation.
Under the updated agreement, fee rates will now apply progressively based on market cap starting at 0.95% for amounts up to £500 million and decreasing to 0.40% for amounts above £2 billion.
Supermarket REIT also intends to transfer its alternative investment fund manager and company secretarial functions, which are currently outsourced, to Atrato Capital, with additional fees associated with this transfer.
Supermarket REIT chair Nick Hewson said: "We have worked closely with (Atrato Capital) to identify ways to deliver both material cost savings and even closer alignment with the interests of the company and its shareholders.
“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."
The amendment is set to take effect on July 1, 2025, pending shareholder approval.