Centuria Diversified Property Fund Performance update: December 2018
(APIR – CNT0032AU)
Thank you for your ongoing support as a valued investor in the Centuria Diversified Property Fund. As you know, this fund is a multi-asset, open ended unlisted property fund currently invested in:
- Unlisted property schemes
- Cash deposits
- ASX-listed Real Estate Investment Trusts (A-REITs).
The fund also intends to acquire direct property in line with its investment strategy.
The fund’s target investment profile comprises 80% direct property (including unlisted property schemes) and 20% A-REITs and cash, providing investors the benefit of direct property returns, diversification and access to a limited liquidity facility.
Recent stock market volatility
Because A-REIT investments are listed on the Australian Securities Exchange, their unit prices can be influenced by general market movements. This exposure will result in both positive and negative performance, which is a normal function of equity markets.
The Centuria Diversified Property Fund’s A-REIT investment currently includes the Vanguard Australian Property Securities Index Fund, which is chosen for its alignment to the fund’s investment strategy and its tracking of the S&P ASX 300 A-REIT index.
Over the past quarter, this investment has experienced some short-term volatility, which is reflected in the fund’s unit price. Please refer to centuria.com.au/cdpf for more performance information.
Positive Unlisted Property Investment Performance
This high-quality property portfolio is underpinned by creditworthy tenants and a long weighted average lease expiry of around 7.65 years as at 30 September 2018. Annualised capital growth across current investments over the past 12 months was approximately 5%1. The upcoming 31 December 2018 valuation cycle is approaching, and changes to the property valuations will be reflected in the fund’s unit price.
The fund has been delivering on its objective to provide tax effective monthly income with the potential for long term capital growth. While short term performance has been impacted by this recent market volatility, investors have been receiving monthly distributions of 7.0 cents per unit (FY19 YTD, annualised)2.
Look out for our regular Fact Sheets and Quarterly Updates on the fund’s latest performance – the next one is due out in January 2019. If you have any questions in the meantime, please call (02) 8923 8923 to talk with me directly, or our Investor Services team.on 1800 182 257 or via email Property.Enquiry@CenturiaInvestor.com.au.
1 weighted by investment as at 30 September 2018
2 YTD is historical and is not a forecast of future distribution rates. For full historical fund performance please refer the following page of Centuria’s website centuria.com.au/cdpf. Past performance is not indicative of future performance.