Javelin Mortgage Investment in Vero Beach, Fla., has negotiated a rebate agreement with its manager and taken other steps in a bid to reduce expenses by about $2.1 million.
Javelin's manager, Armour Capital Management, will rebate a portion of the management fee that it receives from Javelin, according to a Monday news release. The rebate will cut Javelin's net management fee costs to about 1.5% per annum of total stockholders' equity and will produce about $1.8 million in yearly savings.
Additionally, Javelin's board members agreed to a yearly reduction of directors' fees of $75,000 per director. The fee cut will produce about $340,000 in yearly savings.
Finally, Javelin has elected to be taxed as a real estate investment trust, which will require Javelin to distribute its ordinary REIT taxable income.
