Canonical page: https://sequoia-research.com/writing/delaware-statutory-trust-fees-fee-basis-converter
Author: Sequoia Research
Published: 2026-10-17T00:24:11.933Z
Updated: 2026-10-17T00:29:33.844Z
Interactive tool: https://sequoia-research.com/writing/delaware-statutory-trust-fees-fee-basis-converter#research-tool

# Delaware Statutory Trust Fees: Fee-Basis Converter

## What Is This Article About?

This guide shows how to compare DST fees that use different starting amounts. The calculator turns each percentage into dollars and can show that cost as a share of equity. You will learn how to choose the right inputs, keep the original fee terms visible, and spot comparisons that do not match. Worked examples explain why a lower stated rate can produce a higher bill.

## Table of Contents

- [Why DST Fee Percentages Can Be Misleading](#why-dst-fee-percentages-can-be-misleading)
- [What a Fee Basis Means](#what-a-fee-basis-means)
- [How to Use the DST Fee-Basis Converter](#how-to-use-the-dst-fee-basis-converter)
- [The Fee Conversion Formula](#the-fee-conversion-formula)
- [Comparing Asset, Equity, and Revenue Fees](#comparing-asset-equity-and-revenue-fees)
- [A Current Filing Shows Why the Contract Matters](#a-current-filing-shows-why-the-contract-matters)
- [Keeping Investor and Trust Figures Separate](#keeping-investor-and-trust-figures-separate)
- [Annual Fees, One-Time Fees, and Changing Bases](#annual-fees-one-time-fees-and-changing-bases)
- [What the Fee Calculator Does Not Include](#what-the-fee-calculator-does-not-include)
- [Checking Sources and Saving Your Results](#checking-sources-and-saving-your-results)
- [Frequently Asked Questions](#frequently-asked-questions)
- [About Sequoia Research](#about-sequoia-research)

## Why DST Fee Percentages Can Be Misleading

A fee rate needs a dollar base before it tells you the cost. One percent of $10 million is $100,000. One percent of $25 million is $250,000. The percentages match, but the bills differ by $150,000. A quick comparison that lists only the rates hides that gap.

This matters when you read Delaware statutory trust fees. A document may describe a charge as a share of equity, property value, revenue, or sale proceeds. Those are different amounts. A rate that looks small beside another rate may apply to a much larger base. The converter keeps those bases in view while doing the math.

The SEC tells investors to read product and account disclosures and ask how fees are charged. Its July 2025 fee bulletin lists private placement memoranda among the documents that can explain product costs. That is a useful starting point for this exercise: get the terms before making a comparison. [SEC fee bulletin](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated).

The result is a cost comparison for the rows you enter. It does not tell you whether a fee is fair or whether the investment is a good choice. A lower bill may come with a different scope of work. A higher bill may or may not reflect useful service. First establish what the charge pays for, then compare its size.

## What a Fee Basis Means

The fee basis is the amount to which a percentage applies. In a simple fee rule, three parts matter: the rate, the basis, and the period. A charge of 0.5% of asset value each year has a rate of 0.5%, an asset-value basis, and a one-year period. Each part needs its own source.

Equity is the owner funding used in your comparison. For this tool, you enter the exact equity amount that the fee contract or your comparison uses. Initial equity, current equity value, and remaining capital are not interchangeable. The tool cannot choose among them by reading the word “equity.”

Asset value is also a defined input. It could refer to an agreed purchase figure or another amount specified in the documents. Do not replace that figure with your own estimate of current market value unless the fee rule calls for it. A fresh appraisal does not, by itself, change a contract's fee basis.

Revenue is money earned or collected over a stated period, using the definition in the fee terms. Check whether the agreement uses billed rent, cash collected, or a broader income figure. A manager paid on collections may receive a different amount from one paid on billed revenue. Those differences belong in the source notes.

The “other defined basis” field lets you enter a different amount without forcing it into one of these groups. Describe that amount in the fee name or source reference. The field gives you arithmetic flexibility; it does not resolve unclear contract wording.

## How to Use the DST Fee-Basis Converter

Start by naming the shared period or event. “Calendar year 2027, projected” is clearer than “annual.” “Sale at the assumed price” is clearer than “exit.” This label appears with the output, so a later reader can see what the figures cover. All fee rows should belong to that same comparison period or event.

Enter total equity, the asset basis, and revenue for the scope you are using. Unused bases may be zero. A used base should come from a specific document or a labeled assumption. Enter dollar amounts without mixing whole dollars and figures stated in thousands. A table showing 10,000 in thousands represents $10 million.

Add one row for each charge. Give it a useful name, enter the percentage, and select the contractual basis. Use 0.5 for one-half of one percent. Entering 50 would mean fifty percent. The source field can hold a document title, date, section, and page number.

Choose whether the inputs are documented or assumed. “Documented” means you have recorded support for the inputs. It does not mean Sequoia Research or this calculator has verified them. A fee rate can be documented while the future revenue used to calculate it remains assumed. In that case, label the row assumed and explain which part is known.

Click “Convert Fees.” The table shows the original rate and basis beside the dollar result. The optional equity column shows each amount as a percentage of the equity you entered. The original fee basis stays visible. Changing that display does not change the contract or the dollars charged.

## The Fee Conversion Formula

The first calculation is straightforward: fee dollars equal the fee rate divided by 100, multiplied by the fee basis. If a hypothetical fee is 2% of $400,000 of revenue, the result is $8,000. The program rounds each row to the nearest cent and then adds the rounded row amounts.

The optional comparison uses a second calculation: fee dollars divided by equity, multiplied by 100. With $500,000 of equity, that $8,000 fee equals 1.6% of equity. It remains a fee based on revenue. The 1.6% figure is a way to express its size using a common reference amount.

If you enter zero equity, the tool can still calculate charges based on assets or revenue. It cannot divide those costs by equity. The equity-relative result is therefore unavailable, rather than zero. Zero would falsely suggest that the cost has no size relative to the investment.

The model accepts nonnegative bases and rates. It rejects missing values, invalid numbers, and amounts beyond its precision limit. Dollar bases may have up to two decimal places. These checks catch input problems; they cannot tell whether a valid-looking number came from the right page or applies to the right trust.

## Comparing Asset, Equity, and Revenue Fees

Consider a hypothetical trust with $10 million of equity, a $25 million asset fee basis, and $2 million of annual revenue. Assume an asset management fee of 0.5% of the asset basis and a separate property management fee of 3% of revenue. These are teaching inputs, not quoted market averages.

| Hypothetical charge | Contractual basis | Dollar cost | Cost as a share of equity |
| --- | --- | --- | --- |
| Asset management at 0.5% | $25,000,000 | $125,000 | 1.25% |
| Property management at 3% | $2,000,000 | $60,000 | 0.60% |
| Both entered charges | Different bases retained | $185,000 | 1.85% |

The 0.5% charge produces more dollars than the 3% charge. It uses a base more than twelve times larger. This is why sorting a fee table from the lowest percentage to the highest can lead you in the wrong direction. Calculate the dollars before drawing a conclusion.

Now imagine a different proposal with a fee of 1% of the same $10 million equity amount. Its dollar cost would be $100,000. That is $25,000 less than the hypothetical 0.5% asset fee. This comparison still needs a service check. The two charges may cover different duties, so the dollar gap alone does not prove better value.

Changing equity also changes the optional ratio. If the same $125,000 fee is compared with $5 million of equity, it equals 2.5%. The fee itself has not doubled. The reference amount has fallen. Keep that distinction clear when comparing properties with different financing or capital structures.

## A Current Filing Shows Why the Contract Matters

The JLL Income Property Trust prospectus package dated May 8, 2026 describes DST program charges using different bases. Its DST discussion includes a management fee tied to initial equity and a possible disposition fee tied to gross sale proceeds. This is a specific program disclosure, not a fee schedule for all DSTs. [JLL prospectus, printed page 79](https://s3.us-east-1.amazonaws.com/jllipt/uploads/literature/general/Prospectus_2026-05-08-185335_ythj.pdf).

The lesson is to read each fee line on its own terms. A management charge and a sale charge may use different amounts and arise at different times. You should not add their stated percentages and call the sum an annual fee. The converter helps with the dollar math after you have identified those terms.

For an actual offering, use its current private placement memorandum, supplements, and fee agreements. A public program filing may explain the broader structure without stating your final terms. Record both the document date and the section used, so a reviewer can see whether the input came from an offering document or a general program description.

## Keeping Investor and Trust Figures Separate

Every number in one calculation needs the same scope. If you enter a trust's full property value but only your personal investment as equity, the equity-relative ratio may look enormous. That result reflects mismatched inputs. It does not establish that you will personally receive a bill for the full trust-level fee.

Begin with a trust-level comparison when that is how the documents present the charges. Use trust equity, trust assets, trust revenue, and trust fee dollars. That gives you a consistent view of the cost structure. Write the scope in the shared-period label or the source reference.

If you need an investor-level estimate, first determine how the charge is allocated. A simple ownership fraction may be appropriate for an illustrative example, but it should not be assumed for every arrangement. Classes, fee waivers, direct account charges, and other terms can affect the allocation. The converter does not derive your ownership fraction or interpret these terms.

Suppose a hypothetical investor bears exactly 1% of a $125,000 trust fee under a stated allocation. That investor's share is $1,250. This extra step is separate from the fee calculation. It depends on the allocation assumption, which should appear beside the number rather than remain hidden in a worksheet.

## Annual Fees, One-Time Fees, and Changing Bases

The tool compares a single period or event. It does not spread an upfront cost over a holding period or forecast years of changing revenue. If you want to compare annual operating charges, use annual bases and annual rates. If you want to examine a sale, run a separate calculation for the sale event.

A contract may calculate a fee monthly or daily. One annual input may not reproduce the actual bill when the basis changes during the year. For example, a fee linked to daily values needs those daily values and the stated day-count rule. A year-end snapshot is not a substitute for that history.

For a simple fixed monthly charge, you can make an annual illustration outside the tool and explain the step. If the underlying amount or rate changes, show separate periods. Do not quietly multiply one month's bill by twelve and present it as a documented full-year cost.

An extended holding period also creates a different question. Even when the annual rate stays fixed, another year may add another year's charge. The fee-basis converter does not model that added year. Keep timing analysis separate so a clean conversion table does not hide a large difference in total time invested.

## What the Fee Calculator Does Not Include

The subtotal covers only the rows you enter. It cannot find omitted fees, reimbursements, loan costs, or account charges. A neat result is not proof that the list is complete. Compare the output with the full fee disclosure and ask which costs sit outside the table.

The model also does not apply tiered rates, minimum fees, caps, waivers, performance hurdles, or profit-sharing rules. A flat percentage does not reproduce a complex fee formula. If those terms apply, use a separate calculation that follows the contract and label any simplified illustration clearly.

Some expenses may already be included in a forecast's cash flow. Subtracting them again would count them twice. This tool does not calculate a revised distribution rate or total return, so it should not be used as an automatic deduction from a sponsor's forecast. First determine what the forecast already includes.

Taxes, property performance, resale timing, and the quality of management remain outside the model. The output can help you ask a sharper question about cost. It cannot replace the broader work needed to assess an investment or a proposed exchange.

## Checking Sources and Saving Your Results

Before saving a result, trace each rate and base to its source. Read the nearby notes as well as the fee table. Confirm the entity, period, class, and any conditions. A reference such as “PPM, fees section” is a start, but a title, date, and page are easier for someone else to check.

The download contains the entered values and calculated results. It is a local JSON file, which is a text-based data format. The page does not submit inputs to a server or save them between visits. Keep your source documents with the downloaded result if you want a review file that another person can follow.

Editing an input clears the saved result. You must convert the current inputs again before downloading. This prevents an old calculation from being exported beside new numbers. If a source changes, update the reference and the relevant input, then save a fresh result with a clear file name.

## Frequently Asked Questions

### Does a lower DST fee percentage mean a lower cost?

Only when the basis and period are comparable. A low rate on a large asset amount can create a higher dollar charge than a larger rate on a smaller equity amount. Convert both to dollars and check which services each fee covers.

### Is the equity-relative percentage the contractual fee rate?

No. It expresses the calculated dollar cost as a share of the equity you entered. The contract still uses its original basis. Keep both figures visible so a comparison does not turn into a false description of the fee terms.

### Can I add upfront and annual fees in one run?

Use separate runs unless you have defined a shared period that makes the addition meaningful. The tool does not annualize charges or decide how many times a fee occurs. A combined subtotal without clear timing can be hard to interpret.

### Does “documented” mean the calculator verified the fee?

It means you selected that status for the inputs. The tool does not open documents or check references. If a documented rate is applied to projected revenue, the resulting dollar cost still depends on that projection. Label the row assumed and explain the mix.

### Can this tool identify all fees in a DST offering?

It cannot. You supply the rows, rates, bases, and references. Use the output as part of a fee review, then check it against the complete offering documents and account terms. Missing charges will not appear unless you add them.

### Why does the tool allow zero equity?

You may want to calculate an asset- or revenue-based fee before you have a valid equity figure. The dollar calculation can still work. The equity-relative result stays unavailable until the denominator is positive, avoiding a misleading zero percentage.

## About Sequoia Research

Sequoia Research, LLC provides independent research on DSTs and other real estate investment offerings. This educational library explains offering documents, research methods, and investment calculations in plain language. Its tools make assumptions visible so readers can discuss them with their own advisers.

## Sources

- [SEC, How Fees and Expenses Affect Your Investment Portfolio](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated), July 23, 2025. Reviewed October 16, 2026.
- [JLL Income Property Trust prospectus package](https://s3.us-east-1.amazonaws.com/jllipt/uploads/literature/general/Prospectus_2026-05-08-185335_ythj.pdf), May 8, 2026; DST discussion on printed page 79. Reviewed October 16, 2026. The company document supports the program-specific description, not an independent quality judgment.


## Related Reading and Tools

- [Delaware Statutory Trust Fees: A Guide to Upfront, Ongoing, and Exit Costs](https://sequoia-research.com/writing/delaware-statutory-trust-fees-a-guide-to-upfront-ongoing-and-exit-costs)
- [Delaware Statutory Trust Returns: Why Distribution Rates Are Only Part of the Story](https://sequoia-research.com/writing/delaware-statutory-trust-returns-why-distribution-rates-are-only-part-of-the-story)
- [Delaware Statutory Trust Returns: Dated Cash-Flow Return Calculator](https://sequoia-research.com/writing/delaware-statutory-trust-returns-dated-cash-flow-return-calculator)