Life Science REIT agrees on investment management fee cut

Life Science REIT has renegotiated its investment advisory deal with Ironstone and G10 Capital, slashing annual costs by £1m, which will add 0.3p in earnings per share. From Q2 2025, the fee will move from being calculated on net asset value to the lower of net asset value and the average market capitalisation for the quarter. In addition, the rate applied to the initial fee threshold of £500m has been cut by 0.1% to 1%. The rates for fee threshold of above £500m and £1bn remained unchanged at 0.9% and 0.8%, respectively. The agreement was signed up to December 2027. It forms a part of a strategic review launched earlier this month, which could see the REIT sold or wound down.  In case of a takeover, both Ironstone and G10 will secure the fees over the remainder of the term of the investment advisory agreement, with average market capitalisation calculated based on the offer value. Otherwise, average market capitalisation will reflect the closing mid-market price of the shares on the last day of dealing. The revised deal also withdrew a condition requiring Ironstone to buy or subscribe for shares in the REIT in relation to 15% of the value of the advisory fee received.