ASX ANNOUNCEMENT: ASX:QRI Quarterly Update – December 2021
3 February 2022
The Qualitas Real Estate Income Fund (ASX:QRI) December 2021 quarterly update is now available. You can view this latest update in the ASX announcement.
In this quarterly update, Mark Fischer (Co-Founder & Global Head of Real Estate) and Yin-Peng Chiew (Director, Listed Funds & Strategy, Corporate Development) present QRI’s latest performance and provide an update on the CRE debt market.
| Fund performance
- The loan portfolio continues to perform in line with the investment objectives and there were no impairments recorded or interest arrears, resulting in a stable NAV for the quarter.
- The Manager is pleased to continue to deliver attractive risk-adjusted returns in a low interest rate environment and for a well-diversified loan portfolio that is predominantly senior first mortgage.
- The Trust’s performance for the December quarter was 4.94% p.a. net return and 5.10% p.a. distribution return (3-months).
- The Trust is in the process of investing the new capital raised from the Entitlement Offer.
- The Trust’s return is trending lower as a result of increased credit supply and competitive pressures across the CRE debt market.
| December quarter market & portfolio recap
The Manager has a positive outlook on the CRE debt market which continues to grow in size, and anticipates the Australian economy to recover from the recent setbacks due to COVID-19. Generally, there is improving business activity across all CRE sectors, and this will be further supported by the reopened borders and the return of migration.
The low cash rate continues to underpin CRE debt demand and uphold security property values. The market for alternative lending and credit supply remains strong and Qualitas is well positioned in the Australian market due to our long-standing local presence and deep borrower relationships built on trust and repeat lending.
The December quarter was one of the busiest investment periods of 2021 leading up to the holidays and the Manager leveraged this opportunity to achieve strong deployment outcomes for the Trust.
The investment activity for the quarter comprised of 16 new loans totalling $96m settled, both new and extended, and a total of $65m loans repaid. Of the $172m of new capital raised from the Entitlement Offer in early November 2021, 70% has been deployed and allocated as of 31 December 2021. In addition, $159m of new loan mandates were achieved across investment and loans.
Based on this position, the Manager remains on track to fully invest the new capital by April 2022.
 New Units under the Entitlement Offer and Shortfall Offer were issued on 1 November 2021 and 4 November 2021 respectively.
 Within the 6 months maximum target period for the deployment timeframe indicated in the PDS. This is a forecast and is not guaranteed.
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) (“Trust”) 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. Before making an investment decision, you should consider 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 Product Disclosure Statement (“PDS”) and a target market determination for units in the Trust can be obtained by visiting the Trust website www.qualitas.com.au/qri. The Trust Company (RE Services) Limited as responsible entity of the Trust is the issuer of units in the Trust. A person should consider the PDS in deciding whether to acquire, or to continue to hold, units in the Trust.