The Fund owns eight properties across the office, retail and industrial sectors which are located in NSW, Queensland, Victoria and Western Australia. It aims to deliver consistent income distributions with the potential for capital growth. For the one year period to 31 March 2018, the Fund delivered a total return of 16.18 per cent, comprising 7.96 per cent distribution return and an 8.22 per cent growth return.
Nikki Panagopoulos, fund manager, said the Fund has delivered investors strong, steady income distributions particularly since Australian Unity took over its management in 2010.
“The Fund’s strategy is to continue to add value for investors while focusing on income generation, with an active development pipeline underway across a number of properties.
“Right now we are raising capital to fund a number of exciting property development projects. These developments are targeted to improve tenant amenities, increase lettable area and build on the quality of the existing property portfolio which is designed to improve investor returns.
“For example, in April approval for the next stage of a significant development at Busselton Central Shopping Centre in Western Australia, was cemented which will see the addition of a new Coles on a 15 year lease, as well as specialty retailers.
The $343 million Fund has a Recommended rating from Lonsec. Australian Unity’s forecast distribution range for the Fund for the year to 31 March 2019 is 6.5- 6.9 per cent.*
The occupancy of the Fund’s portfolio was 98.9 per cent by income and its weighted average lease expiry was 3.82 years by base rental income at 31 March 2018.
The Fund’s three-year return was 17.31 per cent per annum and the five-year return was 13.93 per cent per annum. These returns exceed the three and five year returns from the Mercer/IPD Australia Unlisted Wholesale Property Fund Index for the same period.