DigiCo Infrastructure REIT (ASX:DGT) has amended its investment management agreement with HMC Digital Infrastructure Investment Management, a wholly owned subsidiary of HMC Capital (ASX:HMC), to allow greater flexibility in how management fees are paid.
Under the original agreement, base management fees were to be satisfied through the issue of fully paid ordinary securities in DGT, calculated using a monthly volume-weighted average price, rather than paid in cash, until July 1, 2026.
From July 1, the amended agreement allows securities issued to the investment manager to be priced at a level equal to or higher than the monthly volume-weighted average price.
For the period from July 1 to Nov. 30, the securities will be issued at DGT's last reported net tangible asset value of $4.53 per security as of June 30, a price above the VWAP-based calculation, resulting in HMC receiving about 1.2 million fewer securities.
At the time of reporting, DigiCo Infrastructure REIT's share price was $2.53.