This issue’s featured property: Interchange Industrial Estate, Narangba QLD.
Highlights
Leases secured during the month totalled 12,967 sqm. The logistics & warehousing portfolio continued its steady performance, leasing 11,842 sqm at Charles Sturt Industrial Estate, Woodville SA and Interchange Industrial Estate, Narangba QLD.
Q3 2020 Valuations
Quarterly valuations to 30 September 2020 resulted in a total direct property portfolio value (excludes unit trust interests) of $14.95B. This reflects a decrease of $141.91M (after development and capital expenditure) from the valuations recorded in Q2 2020.
Key drivers of valuation
- Commercial: Decreased by $37.02M (after capital expenditure) primarily as a result of increased allowances (incentives and downtime) for current vacancies and expiry of near-term leases.
- Retail: Decreased by a combined $107.98M after (capital expenditure) primarily as a result of lower assessed market rent and capitalisation rate softening of 25 bps at five assets.
- Logistics & warehousing: Increased by a combined $8.80M (after capital expenditure) primarily as a result of capitalisation rate firming of 25 bps at four assets.
- Education: Decreased by a combined $3.69M (after capital expenditure) as a result of development cost expenditure at the LTO which could not be offset by the valuation allowances.
Unlisted property assets are a source of stability and great long-term returns for REI Super’s portfolio.
Approximately 65% of REI Super’s property portfolio is invested in unlisted property assets, through one of our long-standing investment managers, Industry Super Property Trust (ISPT).
Unlisted property assets are assets that are not listed on the Australian stock exchange and are generally not readily available to individual investors.
Unlisted property investments are excellent long-term investments, providing a combination of growth and income to REI Super’s portfolio. They also have fewer short-term ups and downs in their returns than many investments.
REI Super’s investments in ISPT are through its Core Fund, which is a diverse portfolio of around 75 Australian commercial, industrial and retail properties of unmatched quality across capital cities and regional centres.
Since inception in 1994 the ISPT Core Fund has achieved a total gross return of 9.11% p.a.
A growing portfolio of high-quality property assets
The portfolio includes many iconic Australian properties:
- Melbourne’s GPO
- Westfield’s Doncaster Shopping Centre
- Brisbane’s Wintergarden complex
- Casselden Place in Melbourne
- Liberty Place in Castlereagh Street, Sydney
- 2 National Circuit in Canberra
- 100 St Georges Terrace in Perth
Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation.
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129. October 2020.