Rodin Nontraded REITs Change Asset Management Fees and Liberalize Share Redemption Policies
October 1, 2019 | SEC
On September 27, 2019, the boards of both Rodin Global Property Trust, Inc. and Rodin Income Trust, Inc., nontraded REIT programs sponsored by Cantor Fitzgerald Investors, LLC approved changes in the asset management fees as defined in the Advisory Agreements for both REITs from one-twelfth 1.25% of the cost of the Company investments at the end of each month to one-twelfth of 1.20% of the most recently disclosed NAVs.
The REITs also made changes to their respective Amended and Restated Share Repurchase Programs that include the following:
• removal of the one-year holding requirement for share repurchases;
• adjustment to the availability of the share repurchase program from quarterly to monthly;
• adjustment to the restriction on the availability of the share repurchase program in any calendar year from, 5% of the weighted-average number of shares during the prior calendar year, to shares whose aggregate value is 10% of the combined NAV of all classes of shares as of the last calendar day of the previous calendar year;
• addition of a restriction on the availability of the share repurchase program in any calendar month equal to shares whose aggregate value is 2% of the combined NAV of all classes of shares as of the last calendar day of the previous month;
• removal of the restriction that funds available for repurchase in each period be limited to the funds received from the Company’s distribution reinvestment plan in the prior quarter; and
• adjustment to the discounts to NAV per share of the share class being repurchased by the Company from its shareholders.
The discounts on shares repurchased as a percentage of NAV were reduced by one percentage point for holding periods of one year, two years, three years and four years to 3%, 2%, 1%, and 0%, respectively, and shares can now be repurchased with holding periods of less than one year with a 4% discount to NAV.
Source: SEC
