With interest rates (and market uncertainty) on the rise, the QRI offers investors something unique. Namely, a way to take advantage of the attractive regular returns1 and unrivalled expertise of the commercial real estate (CRE) credit market.
QRI’s unique range of benefits include:
- Monthly income through attractive risk-adjusted returns1
- Portfolio diversification into growing CRE credit market
- Pure-play CRE credit fund managed by real estate specialist
- Access to an experienced manager with co-investment alongside fund investors
- Property exposure without ownership risk
OUR PROVEN PERFORMANCE OVER TIME
As an investment that takes advantage of a funding gap in the CRE credit market, QRI is able to deliver attractive returns above the cash rate. To protect investors from the elevated risks in the current macroeconomic environment, assets are reviewed on a monthly and quarterly basis. As at 31 March 2024, the portfolio has no interest arrears or impairments.
Find out more on fund performance.
1. The payment of monthly cash income is a goal of the Trust only and neither the Manager or the Responsible Entity provide any representation or warranty (whether express or implied) in relation to the payment of any monthly cash income. Returns are not guaranteed. The premium achieved is commensurate to the investment risk undertaken; 2. Past performance is not indicative of future performance; 3. Annualised; 4. IPO in November 2018; 5. Net returns are calculated based on the average month end NAV.
Historical net returns by period1,5
| % | 1mth | 3mth | 6mth | 1yr | 3yr3 | Incep3,4 |
|---|---|---|---|---|---|---|
| Net return | 0.72 | 2.16 | 4.44 | 8.94 | 7.23 | 6.76 |
| Target return at 5.0% | 0.78 | 2.34 | 4.65 | 9.13 | 7.10 | 6.49 |
| Target return at 6.5% | 0.90 | 2.71 | 5.40 | 10.63 | 8.60 | 7.99 |
| RBA cash rate | 0.36 | 1.09 | 2.15 | 4.13 | 2.10 | 1.49 |
| Distribution | 0.74 | 2.20 | 4.47 | 8.91 | 7.20 | 6.73 |
| Spread to RBA | 0.38 | 1.11 | 2.32 | 4.78 | 5.10 | 5.24 |
Two primary CRE credit risks are a loss of loan principal and a loss of loan income. The loss of loan principal is the risk that a borrower cannot repay the loan and the security property value declines and is insufficient to meet the full repayment of the loan. The loss of loan income is the risk that cash flow from property or other borrower sources will be insufficient to pay loan interest and fees that are due to the lender. These risks can be managed through prudent loan-to-value ratio (LVR) levels, a strong focus on senior debt, robust covenants, geographic diversification, sector diversification, short loan tenor, and a solid asset management model.
Please refer to the PDS section 8 on risks related to QRI.
Commercial real estate (CRE) credit refers to loans provided to borrowers to finance real estate for investment and development purposes. All CRE loans are secured by real property mortgages.
The borrowers are typically property developers, private corporations or high net worth individuals.
CRE loans can be used to purchase land that is vacant, developable or can be improved upon (with buildings, utilities or other services), or property (buildings that are complete or under construction). The land or property is the mortgage collateral (or security) for the loan, and investors earn income from the ongoing loan interest and fees.
Types of loans include:
- Land (pre-development) loans: Used to fund land that has been approved for development.
- Construction loans: Used to fund property development and construction costs.
- Investment loans: Used to fund completed buildings that can be occupied and generate income from tenancies.
CRE loans may provide an alternative way to earn income, especially for those investors looking for predicable income though attractive risk-adjusted returns^. The ongoing interest payments from CRE loans – which have agreed interest rates and fees – underpin this regular income, which is typically paid to QRI investors in the form of distributions.
Qualitas is one of Australia’s leading real estate investment managers, with a long history in managing CRE credit. As a property specialist, Qualitas on behalf of investors sources lending opportunities in the CRE credit market, undertakes credit assessment of the loan and actively manages the loan performance and risks.
How CRE credit generates regular income^
^ The payment of regular monthly cash income is a goal of the Trust only and neither the Manager nor the Responsible Entity provide any representation or warranty (whether express or implied) in relation to the payment of any monthly cash income. Past performance is not a reliable indicator of future performance.
How to invest
Get In TouchFor advisers
Invest via your usual platform
AMP North | Asgard IDPS | Asgard Super & Pension | BT Panorama | BT Wrap | CFS FirstWrap | Edge CFS | HUB24 | IOOF xpand | Macquarie | Netwealth | Mason Stevens | Praemium
For investors
Speak to your financial adviser or broker
News and Insights
This website is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Qualitas Real Estate Income Fund ARSN 627 917 971 (Trust). This website is prepared by QRI Manager Pty Ltd ACN 625 857 070 (Manager) as the investment manager of the Trust. QRI is a wholly owned member of the Qualitas Group and is an authorised representative of the Qualitas Securities Pty Ltd AFSL 342 242.
The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current Product Disclosure Statement (PDS) of the Trust and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX which are available at www.asx.com.au.
The PDS and a target market determination for units in the Fund can be obtained by visiting the Fund website qualitas.com.au/qri. The Trust Company (RE Services) Limited as responsible entity of the Fund is the issuer of units in the Fund. A person should consider the PDS in deciding whether to acquire, or to continue to hold, units in the Fund.
Neither Perpetual nor the Manager guarantee repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor the Manager gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of the Manager as at the date of this website and are subject to change without notice. Past performance is not a reliable indicator of future performance.