ASX.QRI Current unit price (20 min delayed): $1.625 ⌃ $0

NAV at COB 11 Oct 2021: $1.6045

OFFER OPEN - QRI ENTITLEMENT OFFER - AN OPPORTUNITY TO INCREASE YOUR INVESTMENT IN QRI

The Trust Company (RE Services) Limited ACN 003 278 831 (Responsible Entity) as responsible entity and QRI Manager Pty Ltd ACN 625 857 070 (Manager) as investment manager of the Qualitas Real Estate Income Fund ARSN 627 917 971 (QRI) is pleased to offer eligible unitholders an opportunity to acquire units in QRI under a pro-rata non-renounceable entitlement offer (Entitlement Offer) to raise up to $214 million of new capital as announced to the ASX on 7 October 2021.

Eligible Unitholders will be able to acquire new units in QRI (Units) at an Offer Price $1.60 per unit.

CAPITALISING ON ADDITIONAL CRE LOAN OPPORTUNITIES

The Manager’s long-term strategy since inception of the Trust has been to increase its market presence and scale in order to provide unitholder benefits of greater liquidity and portfolio diversification. This capital raising will facilitate the Trust achieving organic growth of its investment activities and capital base.

The Manager continues to deliver attractive risk-adjusted returns for a well-diversified loan portfolio that is predominantly senior first mortgage and achieved strong performance with the Trust’s 12-month net return and distribution return (paid monthly) of 6.14% p.a. and 6.05% p.a. respectively as of 31 August 2021 which was achieved in a low interest rate environment with the current RBA cash rate of 0.10%1.

The loan portfolio continues to perform well with no impairments recorded since the Trust’s IPO, including during COVID-19, resulting in a stable historical NAV.

DETAILS OF THE ENTITLEMENT OFFER

  • Non-renounceable entitlement offer of 1 for 2 new fully paid ordinary units in the Trust to existing eligible unitholders at an Offer Price of $1.60 per new unit. Fractional entitlements will be rounded up to the nearest whole number.
  • Eligible Unitholders who apply for their Entitlement in full under the Entitlement Offer may also apply for Additional New Units in excess of their Entitlement under the Oversubscription Facility.
  • If there is a shortfall under the Entitlement Offer, the shortfall may be placed at the discretion of the Responsible Entity to new wholesale and retail investors in Australia and New Zealand or to wholesale investors in certain other jurisdictions (Shortfall Offer).
  • The issue price represents a 2.44% discount to the last closing price of $1.64 on 6 October 2021 and a 3.15% discount to the 5 day VWAP of $1.65 as of 6 October 2021. QRI’s Net Asset Value is $1.6028 per unit as at 4 October 2021.
  • The Manager has waived the management fee2 with respect to any uninvested capital raised from the Entitlement Offer.

OFFER TIMETABLE*

Announcement of Entitlement Offer and lodgement of PDS with ASIC Thursday, 7 October 2021
Record Date for Entitlement Offer 7:00pm (AEDT) on Tuesday, 12 October 2021
ENTITLEMENT OFFER OPENS 9:00am (AEDT) on Wednesday, 13 October 2021
Dispatch of PDS (including Entitlement and Acceptance Forms) Wednesday, 13 October 2021
OFFER CLOSES
Payment must be received by 5:00pm (AEDT)
5:00pm (AEDT) on Friday, 22 October 2021
Shortfall Offer bookbuild Monday, 25 October 2021
Results of Entitlement Offer and Shortfall announced Tuesday, 26 October 2021
Issue and allotment of new Units under the Entitlement Offer Friday, 29 October 2021
Commencement of normal trading of new Units issued under the Entitlement Offer Monday, 1 November 2021
Issue and allotment and commencement of trading of new Units issued under the Shortfall (if any) Thursday, 4 November 2021

*The dates above are indicative only and may be subject to change.

HOW TO INVEST

The Entitlement Offer opens 9:00am (AEDT) on Wednesday, 13 October 2021 for Eligible Unitholders.

Investors should consider the Product Disclosure Statement (PDS)3 in deciding whether to acquire, or continue to hold, units in the Trust.

E&P Corporate Advisory Pty Limited is acting as Arranger and Joint Lead Manager to the Entitlement Offer. National Australia Bank Limited, Canaccord Genuity Financial Limited, Taylor Collison Limited and Crestone Wealth Management Limited are acting as Joint Lead Managers and Bell Potter Securities Limited is acting as Co-Manager.

To qualify as an Eligible Unitholder, you must:

  • be registered as a holder of Units as at the Record Date of 7:00pm (AEDT) on Tuesday, 12 October 2021;
  • have a registered address in Australia or New Zealand; and
  • not be in the United States and must not be acting for the account or benefit of a person in the United States4

Eligible Unitholders will be emailed or mailed a PDS in accordance with existing communication preferences on Wednesday, 13 October 2021 accompanied by a personalised Entitlement and Acceptance Form that sets out the number of New Units entitlements that can be applied for under the Entitlement Offer. Eligible Unitholders can also access their personalised application forms by going to the Automic Investor Portal.

We appreciate the continued support from our unitholders and encourage participation in the Entitlement Offer as an opportunity to increase existing unit holding.

THE BENEFITS OF INVESTING IN QRI

  • RELIABLE INCOME in the form of regular monthly cash distributions5

  • ATTRACTIVE PREMIUMS above the current low cash rate6

  • CAPITAL PRESERVATION as all CRE loans are secured by real property mortgages

  • STABLE NET ASSET VALUE at or above $1.60 with no impairments since the IPO, supported by a robust loan valuation process 
  • CRE DEBT ASSET CLASS DIFFERENTIATION managed by a local property specialist with expertise across both real estate debt and equity

  • DOMESTICALLY FOCUSED INVESTMENTS with 100% of the portfolio currently invested in Australia.

RATINGS & RESEARCH

The Trust has independent research and assigned ratings from Zenith Investment Partners, BondAdviser, Independent Investment Research and Lonsec Research which can be obtained from the here.

FOR MORE INFORMATION

If you have any questions, please contact QRI Investor Relations or the unit registry:

QRI Investor Relations
P:
+61 3 9612 3900

E: qri@qualitas.com.au

Unit registry
Automic Group

P: 1300 288 664 (in Australia), +61 2 9698 5414 (outside Australia) between 9am and 5pm (AEDT)

E: qualitas@automicgroup.com.au or corporate.actions@automic.com.au
W: www.automic.com.au

1 Past performance is not a reliable indicator of future performance.
2 A Management Fee of 1.5375% p.a. (inclusive of GST, less RITC) of the Trust’s NAV, is payable monthly out of the Trust to the Manager.

3 The issuer of the Units is The Trust Company (RE Services) Limited ACN 003 278 831; AFSL 235 150 as responsible entity of the Trust. The PDS is also available at the Trust website, www.qualitas.com.au/listed-investments/QRI. A person should consider the PDS in deciding whether to acquire or to continue to hold, Units. The responsible entity has prepared a target market determination (TMD) in relation to the Trust as required by law. The TMD is available at the Trust website and contains information about the likely objectives, financial situation and needs of retail clients for whom QRI may be suitable.
4 To the extent such a person holds Units in the Trust for the account or benefit of such persons in the United States.
5 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.

6 Returns are not guaranteed. The premium achieved is commensurate to the investment risk undertaken. Past performance is not a reliable indicator of future performance.

 

This communication has been issued by The Trust Company (RE Services) Limited (ACN 003 278 831) (AFSL 235150) as responsible entity of The Qualitas Real Estate Income Fund (ARSN 627 917 971) (Fund) and has been prepared by QRI Manager Pty Ltd (ACN 625 857 070) (AFS Representative 1266996 as authorised representative of Qualitas Securities Pty Ltd (ACN 136 451 128) (AFSL 34224)).

This communication contains general information only and does not take into account your investment objectives, financial situation or needs. It does not constitute financial, tax or legal advice, nor is it an offer, invitation or recommendation to subscribe or purchase a unit in QRI or any other financial product, 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 and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

While every effort has been made to ensure the information in this communication is accurate; its accuracy, reliability or completeness is not guaranteed and none of The Trust Company (RE Services) Limited (ACN 003 278 831), QRI Manager Pty Ltd (ACN 625 857 070), Qualitas Securities Pty Ltd (ACN 136 451 128) or any of their related entities or their respective directors or officers are liable to you in respect of this communication. 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.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.