Management fee and italian retail Reits

The study focuses on the management fee structure of Italian listed and unlisted real estate investment trusts (Reits).The analysis illustrates how the management fee is typically calculated and investigates Reits’ management costs upon their operational and economic characteristics.The results show that the management fee of Reits which have been established via cash contributions is higher than that of seeded Reits. Newly established Reits seem to use the management fee structure for competing in the market. Mixed Reits’ management fees are typically higher than in the case of specialized Reits. Reits with income distribution apply on average a lower management fee than Reits with no dividend distribution. Finally, the analysis shows that there is an inverse relation between management fees and the size of the assets under management.