ARC’s Phillips Edison Grocery Center REIT Revising Advisor Fees

Phillips Edison Grocery Center REIT I Inc., a publicly registered non-traded real estate investment trust sponsored by AR Capital, revised certain fees that are paid to its advisor, Phillips Edison NTR LLC, for the services it provides to the company. 

Beginning October 1, 2015, the REIT will no longer pay the 0.75 percent financing fee. However, the asset management fee will remain at 1 percent of the cost of the company’s assets, but will be paid 80 percent in cash and 20 percent in Class B units of Phillips Edison Grocery Center Operating Partnership I, L.P. The changes were approved by the conflicts committee of the board of directors after a review of the compensation paid by peer group companies to their external advisors.

Phillips Edison Grocery Center REIT I, Inc. is a public non-traded REIT that invests in grocery-anchored neighborhood shopping centers with a mix of national and regional retailers selling necessity-based goods and services in strong demographic markets throughout the United States. The company owns and manages a retail portfolio consisting of 147 shopping centers totaling approximately 15.5 million square feet. Since August 2010, the company has issued 185.9 million shares of common stock, raising  $1.84 billion in investor equity. The offering closed in February 2014.