Quarterly Newsletter – Financial Year 23: Finding Returns In Unusual Places

Lorem ipsum dolor sit amet, consectetur adipiscing elit

Quarterly Newsletter – Financial Year 23: Finding Returns In Unusual Places

July 2023 Newsletter | ** CPD POINTS ** This quarterly newsletter for the Fund, titled ‘Financial Year 23: Finding Returns In Unusual Places’, can be found here. In this newsletter we discuss the contributions to Fund returns in FY23, as well as HomeCo Daily Needs REIT (HDN), one of the holdings in the Auscap Fund. This newsletter also details the performance and portfolio positioning of the Fund in June 2023.

Auscap Newsletter – July 2023

Multiple Choice Test - July 2023 Quarterly Newsletter

Learnings Outcomes: On the completion of reading this Quarterly Newsletter, FPA Members will have a greater understanding of the factors considering when valuing the listed REIT, HDN.ASX as an investment in the Fund. 0.75hr CPD is available for this activity.

"*" indicates required fields

Question 1*

In the three decades prior to the recent interest rate rises, capitalisation rates used to determine commercial property valuations:

Declined in tandem with the RBA Cash Rate Target

Increased in tandem with the RBA Cash Rate Target

Remained unchanged

Dramatically increased

Question 2*

Following on from question 1, this created a

Significant headwind for the sector during that period

Significant tailwind for the sector during that period

Surge in demand for commercial property in the past 12 months

Share price boom in the listed REIT space in the past 12 months

Question 3*

The ASX listed REIT Index is what percentage off its 2022 high?

25%

55%

Question 4*

There are a number of challenges facing commercial real estate including:

Lower interest rates and everyone back in the office

Higher interest rates and limited office space available

Lower interest rates and limited office space available

Higher interest rates, continued shifts towards work-from-home, significant new office supply, trends in e-commerce and the risking cost of debt funding

Question 5*

HDN’s tenants are predominantly:

Large, well-funded and highly profitable retailers

Very small boutique businesses

Large but unprofitable retailers

Discount stores

Question 6*

HDN’s portfolio is focused within high population growth metropolitan catchments and is:

Over 83% leased to large national tenants.

Over 83% leased to small regional tenants.

Over 99% leased to large national tenants.

Less than 50% leased to large national tenants.