one question on the management fees / related party transactions (note 3 of the latest 10Q 2025), a management fee of 4% is paid to GP (Hamilton Inc) of the Partnership equal to 4% of rental and laundry revenue. Shouldn’t this payment ideally cover the following expenses -
1) operating costs including payroll and other services which are billed separately by the GP
2) charges towards professional services such as accountants, counsel etc which are also billed separately
Unless the management fee is pure profit for the GP.
I think it depends. What’s included in that 4% will generally be pretty run of the mill. Anything over that will be reimbursed or paid directly by NEN.
4% management fee is fairly typical for what I’ve seen.
Thanks for this. Would love to get a post from you on NBN - I think you are a fan. Thank you.
It’s coming! NBN continues to be my largest position.
Hi great writeup !!,
one question on the management fees / related party transactions (note 3 of the latest 10Q 2025), a management fee of 4% is paid to GP (Hamilton Inc) of the Partnership equal to 4% of rental and laundry revenue. Shouldn’t this payment ideally cover the following expenses -
1) operating costs including payroll and other services which are billed separately by the GP
2) charges towards professional services such as accountants, counsel etc which are also billed separately
Unless the management fee is pure profit for the GP.
Would like to hear your views, Thanks.
I think it depends. What’s included in that 4% will generally be pretty run of the mill. Anything over that will be reimbursed or paid directly by NEN.
4% management fee is fairly typical for what I’ve seen.