News and Events

    • PIR - One week REIT sector performance

      pir-weekly-update-20170816.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170809.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170804.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170726.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170719.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170712.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170706.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170607.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170531.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170524.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170517.pdf

    • MPG Retail Brands Property Trust - MPG Retail Brands Property Trust

      The MPG Retail Brands Property Trust is a diverse open ended Fund that invests in retail properties and investments. The Trust is seeking to raise $10.0M through the issue of 10.0M Ordinary units at $1.00 per unit. Funds raised will be used, in conjunction with a bank loan, to acquire the Beaudesert Central Shopping Centre in Beaudesert, Qld. Following the acquisition, the Trust will have a portfolio of seven direct retail properties (88.5% of the portfolio), three unlisted property trusts managed by the RE (9%) and cash (2.5%). The portfolio occupancy will be 99% with a WALE of 6.2 years and a weighted portfolio capitalisation rate of 6.6%. Major brand tenants Coles, Woolworths, Bunnings and Target account for 50% of income. The Trust’s Responsible Entity is MPG Funds Management Limited, which is part of McMullin Property Group, founded by the late Ian McMullin (founder of Spotless Group). McMullin Property Group has also announced it will purchase new Liquidity Units and use the funds to reduce the LVR to 54.9% (from the 62.4%), against an LVR covenant of 65%.  Liquidity units rank equally with Ordinary Units, however have an additional redemption feature which McMullin Property Group has agreed it will not exercise if the LVR is above 55% in the remaining five years of the current term. McMullin Property Group will accept a lower distribution of 6.72% on their Liquidity Units, which PIR considers to show strong support for the Trust. The Trust is targeting distributions in FY18 of 7.25% and in FY19 of 7.35%.

      Recommendation:
      A
    • Centuria Sandgate Road Fund - Centuria Sandgate Road Fund

      The Centuria Sandgate Road Fund ("the Fund”) is a closed-ended, single-asset fund with an initial term of six years to 1 July 2023.
      The Fund is seeking to raise $68.9M through the issue of 68.9M units at $1.00 per unit which will be used in conjunction with
      bank debt to acquire 1231 Sandgate Road, Nundah Qld for $106.25M. Recently constructed in 2012, the Property is located approx. 4kms from Brisbane Airport and 10kms from the Brisbane CBD. The Property is an A grade 8 level office building with ground floor retail tenants, a WALE of 9.4 years and is 100% occupied. Around 81% of rental income is supported by government leases. The Manager is targeting an FY18 distribution of 6.5%, and is forecasting this to increase to 8.0% p.a. by the sixth year. Fixed annual rent increases of 3.5% - 4.0% p.a. are expected to support valuations and any risks to tenancies.

      Recommendation:
      AA
    • PIR - One week REIT sector performance

      pir-weekly-update-20170510.pdf

    • DJ Property Limited (Investment) - DJ Property Limited (Investment)

      DJ Property Limited (Investment) is an unlisted public company undertaking a capital raising through the offer of ordinary shares at an issue price of $10.00 per share. The Offer represents an investment in a debt finance company which provides loans to related entities within the DJ Group for commercial properties secured by way of a second ranking mortgage. This investment replaces unsecured debt on the balance sheet of the two unlisted property trusts holding the properties and potentially fund future property acquisitions depending on the amount raised under this capital raising. The shares currently provide a 10.0% p.a. total return by way of $0.70 p.a in franked dividends with $0.30 p.a in franking credits. Dividends are paid monthly and are a pass through of the interest the Company receives on $3.0M of loans, equivalent of the average initial passing yield (or net property income) of the properties. The Company has indicated that future income returns may reduce to 8.5% - 10.0% p.a. over the next 12-18 months, subject to the purchase of new properties.

      Recommendation:
      A-
    • PIR - One week REIT sector performance

      pir-weekly-update-20170503.pdf

    • RBA leaves cash rate at 1.50%

      At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The RBA noted the following comments in relation to the property market in Australia:

      "Conditions in the housing market continue to vary considerably around the country. Prices have been rising briskly in some markets and declining in others. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness."

      "Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time."

    • PIR - One week REIT sector performance

      pir-weekly-update-20170426.pdf

    • PIR - One week REIT sector performance

      pir-weekly-update-20170419.pdf

    • SCA Unlisted Retail Fund 2 ("SURF 2") - SCA Unlisted Retail Fund 2 ("SURF 2")

      The SCA Unlisted Retail Fund 2 ("SURF 2") is a 5 year, unlisted property fund that is offering investors the opportunity to subscribe for 29.5M units at $1.00 per unit. Funds raised will be used, in conjunction with debt to purchase two retail properties from SCA Property Group (ASX: SCP), the Katoomba Marketplace and Mittagong Village in NSW, for a combined total of $55.1M. The property metrics are attractive: a long WALE of 17.2 years, 100% occupancy with 94% of the rental income secured by long term leases with Woolworths Limited (Woolworths supermarket, Big W discount department store and Dan Murphy's liquor store), offering a low risk income yield over the term of the Fund. The Manager is forecasting distributions of 7.00% p.a. in FY18 and FY19 paid quarterly, in arrears. PIR considers the Fund would appeal to investors seeking a predictable and sustainable income yield, supported by a strong corporate tenant and long term tenancy agreement in place.

      Recommendation:
      AA