Managing fees move a challenge

Management of listed property trusts and companies has been a controversial topic, as more listed entities such as Kiwi Income Property Trust are pressured to revise their fees.

So part of yesterday's deal by Macquarie Goodman Property Trust involved a management fee bombshell, widely welcomed by analysts.

The trust is reducing its base fee and introducing a performance fee calculated every half-year. Unless the trust delivers returns greater than its peers, its fees will sink.

Analysts said this would align the interests of the trust's manager more closely with those of the investors.

One said investor pressure was mounting, forcing a change in sentiment at listed property trusts over the issue.