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.

 

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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 May 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 0.76 2.16 4.40 8.96 7.35 6.84

Target return at 5.0% 0.78 2.34 4.68 9.24 7.34 6.58

Target return at 6.5% 0.90 2.71 5.43 10.74 8.84 8.08

RBA cash rate 0.36 1.09 2.18 4.24 2.34 1.58

Distribution 0.73 2.17 4.40 8.94 7.33 6.81

Spread to RBA 0.37 1.08 2.23 4.70 4.99 5.23

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.

 

RESEARCH RATINGS & REPORTS

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The information on this website that relates to the Qualitas Real Estate Income Fund ARSN 627 917 971 (Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust.  This website is prepared by QRI Manager Pty Ltd ACN 625 857 070 (Manager) as the investment manager of the Trust.

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. If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser.

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.

The PDS and a target market determination for units in the Fund can be obtained by visiting the Fund website qualitas.dev.nucleoserver.com/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.

BondAdviser has acted on information provided to it and our research is subject to change based on legal offering documents. This research is for informational purposes only. This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. The content of this report is not intended to provide financial product advice and must not be relied upon or construed as such. The statements and/or recommendations contained in this report are our opinions only. We do not express any opinion on the future or expected value of any Security and do not explicitly or implicitly recommend or suggest an investment strategy of any kind. BondAdviser is paid a licensing fee from the manager and/or its distribution partner. BondAdviser Asset Management may hold units in the security. This report has been prepared based on available data to which we have access. Neither the accuracy of that data nor the research methodology used to produce the report can be guaranteed or warranted. Some of the research used to create the content is based on past performance. Past performance is not an indicator of future performance. We have taken all reasonable steps to ensure that any opinion or recommendation contained in the report is based on reasonable grounds. The data generated by the research is based on methodology that has limitations; and some of the information in the reports is based on information from third parties. We do not therefore guarantee the currency of the report. If you would like to assess the currency, you should compare the report with more recent characteristics and performance of the assets mentioned within it. You acknowledge that investment can give rise to substantial risk and a product mentioned in the reports may not be suitable to you. You should obtain independent advice specific to your particular circumstances, make your own enquiries and satisfy yourself before you make any investment decisions or use the report for any purpose. This report provides general information only. There has been no regard whatsoever to your own personal or business needs, your individual circumstances, your own financial position or investment objectives in preparing the information. We do not accept responsibility for any loss or damage, howsoever caused (including through negligence), which you may directly or indirectly suffer in connection with your use of this report, nor do we accept any responsibility for any such loss arising out of your use of, or reliance on, information contained in or accessed through this report. © 2023 Bond Adviser Pty Limited. All rights reserved.

The Independent investment research (IIR) research report should be read in its entirety including the disclaimer and disclosure noted in the report. IIR recommends that you do not make any investment decision prior to consulting your wealth adviser about the contents of the IIR research report.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2024) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only.  This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice.  It is not a specific recommendation to purchase, sell or hold the relevant product(s).  Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs.  Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website.  Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments.  Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines

The rating issued October 2023 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.