AREITs take a breather following their recent six month rapid rally
October saw an abrupt halt to the recent rally in the S&P/ASX 200 Property Accumulation Index (Index), which delivered a total return of negative 9.0% for the month. This was an underperformance of 6.9% relative to the S&P/ASX 200 (which returned negative 2.1% for the month). The AREIT market performance was the first monthly decline following six months of strong positive returns. The defensive characteristics of the APN Property for Income funds were evident as the APN Property for Income Fund, APN Property for Income Fund No. 2 and the APN AREIT Fund all outperformed the Index for the month. Despite the tail off in performance for the month, it’s important to note that the AREIT market has rebounded 54% from the March 2009 low point to 31 October. We remain cautiously optimistic that the rejuvenation the sector has recently undertaken will continue to provide a solid platform for the industry to prosper by focussing on the basic property fundamentals (income streams derived from the rent collected on commercial property).
Click here to view this month’s funds’ commentary.
Also in this edition:
Providing you with information that really hits the mark
Our aim is to provide you with a comprehensive monthly update on relevant issues to ensure you are kept abreast of the rapidly changing landscape in the commercial real estate sector as well as activity specific to APN Property Group. We welcome your feedback on suggestions for improving the way we communicate or topics that would be of interest to you. Click here to share your thoughts with us.
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Hot Topic: Taking a dynamic approach to investing
This month’s Hot Topic explores the “active” versus “passive” investment debate. APN’s investment style is highly active and we’re strong proponents of this dynamic investing approach.
The little Aussie (dollar) battler off and racing
We take a look at the skyrocketing performance of the Australian dollar versus the US dollar, Euro and Pound and share our views on the impact the rising Australian dollar has on listed real estate investments. Read the full article here.
Limited Liquidity Offer – Pro-rata payments distributed
Withdrawal requests in relation to the September Limited Liquidity Offer were paid to investors in October and funded out of cash reserves held in the APN Property for Income funds.
The volume of withdrawal requests received for each fund exceeded the total funds available for the withdrawal offers and therefore in accordance with the Corporations Act, each withdrawal request received has been scaled back on a proportionate basis. The amount made available for the Limited Liquidity Offer is capped to ensure that the funds are effectively managed in accordance with their long term investment objectives and the impact on the proportion of unlisted assets does not compromise those investors who remain invested.
View further details on our website or refer to your transaction statement for details confirming your withdrawal amount paid.Top
Limited Liquidity Offer – Indicative timeline for 2010
As previously communicated, we intend to make further Limited Liquidity Offers (LLOs) on a quarterly basis as we manage the funds back to a “business as usual” basis until a more permanent liquidity solution is delivered. Dependent on market conditions, the intended timing for the next quarterly LLO is:
- 1 February to 28 February 2010
We will confirm the timing of each LLO and provide due notice prior to each window in advance of the offer period.Top
New applications for the APN Property for Income Fund and APN Property for Income Fund No. 2 can now be accepted
We are pleased to advise that new applications can now be received for the APN Property for Income Fund and APN Property for Income Fund No. 2. A Supplementary Product Disclosure Statement (SPDS) is available and provides important information to new and existing investors which should be read in conjunction with the relevant PDS for either fund.
Further details here.Top
APN AREIT Fund – Margin lending update
We have recently secured margin lending loan to value ratios (LVRs) for the APN AREIT Fund from some of the largest players in the market as follows:
- BT Margin Lending - 65% LVR
- St George Margin Lending - 65% LVR
- Colonial Margin Lending - 60% LVR
This adds to the portfolio of existing margin lenders including Leveraged Equities, Macquarie Equities and ANZ Margin Lending .Top
APN Regional Property Fund update
The APN Regional Property Fund has recently renewed its bank debt facility for a further three years with the Commonwealth Bank of Australia. With the completion of this critical refinancing of bank debt, distributions are set to recommence from March 2010.
Read the complete fund update here.Top
2009 APN Property Group Annual Report now available
The 2009 Annual Report for APN Property Group is now available.Top