Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWTON, MA-Responding to shareholder concerns that performance incentives for the external manager of CommonWealth REIT and its subsidiaries should be more closely aligned with investor returns, CWH on Monday said it would implement a new management fee plan beginning next year. The REIT and its four subsidiaries—Select Income REIT, Hospitality Properties Trust, Senior Housing Properties Trust and Government Properties Income Trust—are externally managed by REIT Management and Research, which is owned by the father-and-son team of Barry and Adam Portnoy, who also serve as managing trustees for all five REITs.

Currently, the base business management fees paid to RMR by CWH and its subsidiaries are calculated at the annual rate of approximately 0.5% of the gross historical cost of each REIT’s real estate assets. Beginning in 2014, these fees will be calculated based on either the gross historical cost of the assets or each REIT’s total market capitalization, whichever is lower.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. Healthcare Real Estate 2021Event

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.