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Two Cantor Fitzgerald REITs Reduce Asset Management Fees and Loosen Share Repurchase Programs

Rodin Global Property Trust Inc. and Rodin Income Trust Inc., two real estate investment trusts sponsored by Cantor Fitzgerald Investors, have each amended the asset management fee paid to their respective advisors, Rodin Global Property Advisors and Rodin Income Advisors.

Rodin Global Property Trust Inc. and Rodin Income Trust Inc., two real estate investment trusts sponsored by Cantor Fitzgerald Investors, have each amended the asset management fee paid to their respective advisors, Rodin Global Property Advisors and Rodin Income Advisors. The REITs also amended their share repurchase programs, effective November 1, 2019.

The monthly asset management fee was changed from one-twelfth of 1.25 percent of the cost of the companies’ investments at the end of each month, to one-twelfth of 1.20 percent of their most recently disclosed net asset value.

The advisors will continue to manage the companies’ day-to-day operations and its portfolio of properties and other real estate-related assets, subject to the boards’ supervision.

The REITs’ share repurchase programs will no longer have a one-year holding requirement and will occur on a monthly basis, rather than quarterly.

Restrictions on the availability of the share repurchase programs were adjusted from 5 percent of the weighted-average number of shares during the prior calendar year, to shares whose aggregate value is 10 percent of the combined NAV of all classes of shares as of the last calendar day of the previous calendar year.

For shares held for less than one year, which were previously ineligible for repurchase, the repurchase price will be a 96 percent discount of NAV.

For shares held for one year, the repurchase price will be 97 percent of NAV (previously 96 percent).

For shares held for two years, the repurchase price will be 98 percent of NAV (previously 97 percent).

For shares held for three years, the repurchase price will be 99 percent of NAV (previously 98 percent).

For shares held for four years, the repurchase price will be 100 percent of NAV (previously 99 percent). Shares held for five years remain unchanged and will be repurchased at 100 percent of NAV.

The companies also removed the restriction that funds available for repurchase in each period be limited to the funds received from the distribution reinvestment plan in the prior quarter.

The REITs added a restriction “on the availability of the share repurchase programs in any calendar month equal to shares whose aggregate value is 2 percent of the combined NAV of all classes of shares as of the last calendar day of the previous month.”

Rodin Global Property Trust invests primarily in single-tenant net leased commercial properties located in the United States and Europe and raised approximately $107 million in investor equity, as of June 30, 2019. As of the second quarter 2019, the company has invested approximately $151.5 million in real estate and real estate-related assets. The offering is expected to close on March 23, 2020.

Rodin Income Trust launched in June 2018 and focuses on originating mortgage and mezzanine loans secured mainly by commercial real estate located primarily in the U.S., United Kingdom, and other European Countries.

As of June 30, 2019, Rodin Income Trust had made two investments including an $18 million fixed rate mezzanine loan and a $9 million floating-rate mezzanine to affiliates of Delshah Capital Limited. The company has raised $8.6 million in investor’s equity as of the second quarter of 2019.

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