Australian Unity’s Diversified Property Fund (Fund) has been added to HUB 24’s IDPS platform.
The Fund owns eight office, retail and industrial properties located in NSW, Queensland, Victoria and Western Australia and aims to deliver consistent income distributions with the potential for capital growth.
Its portfolio occupancy was 98.34 percent by income and its weighted average lease expiry was 3.03 years by base rental income at 30 June 2017.
Nikki Panagopoulos, fund manager, said the Fund’s strong historical performance can be attributed to its sustained, consistent income returns in conjunction with the active management of the Fund’s well located high quality portfolio.
“The Fund’s strategy is to continue to add value to its existing portfolio, with an active development pipeline underway across a number of properties.
This includes redeveloping the Dog Swamp shopping centre in Western Australia and adding a new format ALDI supermarket, and food and beverage entertainment precinct”, she said.
Ms Panagopoulos said the diversified nature of the assets in the Fund can provide investors with sustainable, consistent income distributions through periods of economic change.
“We know that many retailers continue to experience tough trading conditions and the entrance of disruptors to the market, such as Amazon, is another wildcard for the sector. The Fund’s investments in neighbourhood shopping centres, which are underpinned by supermarkets and non-discretionary convenience retailers, are key to its consistent income returns”, she said.
The $313 million Fund has a Recommended rating from Zenith and Lonsec and its forecast distribution range for the year to 30 June 2018 is 7.0- 7.4 percent.*
The Fund’s one-year total return was 17.57 percent, its three-year return 15.35 percent per annum and the five-year return was 13.28 percent per annum. The fund’s returns exceed the one, three and five year results from the Mercer/IPD Australia Unlisted Wholesale Property Fund Index for the same periods.
Nathan Clarke, Six O’Clock Advisory
Mobile: 0400 442 414
About the Fund
The Australian Unity Diversified Property Fund is an unlisted property fund that owns properties across Australia, diversified across the retail, office and industrial sectors. Its tenant base includes many of Australia's most successful companies and brands.
The Fund's strategy aims to provide investors with stable and consistent income through periods of economic change.
* The distribution return range forecast is for the full year to 30 June 2018 and is made on the basis of a number of assumptions and estimates. The assumptions and estimates are updated quarterly. The forecast distribution return range is not guaranteed and are provided only to indicate current distribution projections for the Fund. We emphasise that investment decisions should not be based on forecast returns, past performance, distribution rate, or the ratings given by a ratings agency for the Fund, since these can vary, and are current only to the date of this release. For more information on the basis for the Fund’s forecast distribution return ranges, refer to the Forecast distribution range document, on the Fund’s webpage.
Units in the Fund are issued by Australian Unity Property Limited ABN 58 079 538 499, AFS Licence No 234455. Information provided here is general information only and current at the time of publication and does not take into account the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Product Disclosure Statement (PDS) and seek professional financial and taxation advice. Past performance is not a reliable indicator of future performance.
The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned October 2016) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology,ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines.
The Lonsec Rating (assigned to Australian Unity Diversified Property Fund – September 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Australian Unity Investments product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: www.lonsecresearch.com.au/research-solutions/our-ratings