FOLKESTONE REAL ESTATE INCOME FUND AT OXLEY
PERFORMANCE
as at 31 March 2015
MARCH 2015 QUARTER REPORT
CENTRE UPDATE
The Centre continues to perform well. As
at the end of February, the Centre’s
moving annual sales turnover was $30.8
million, up from $30.1 million in January
and $26.7 million in June. Importantly,
February sales were 28% higher than the
same month in the prior year, which was
driven by a 39% increase in the
Woolworths’ turnover. This sales growth is
confirmation that customers are shifting
their grocery shopping to the Centre.
The vacant 40 square metre store on the
street front has now been leased to the
adjoining barber, who has expanded,
following the success of their existing
store.
Discussions continue with a potential
tenant in relation to the Centre’s remaining
vacancy of 80 square metres. However, at
the time of reporting, a lease had yet to be
signed. The Vendor’s rental guarantee
remains in place until the earlier of a lease
commencing or April 2016.
DISTRIBUTIONS
The distribution for the March Quarter
2015 was 2.0 cents per unit and will be
paid on 20 April 2015. This is in line with
Forecast Distribution FY15
8.0%
Forecast Tax Deferred FY15
100%
our forecast annualised distribution of
8.0% for FY15.
Fund Gearing
45.9%
Property Value
$35.0m
MARKET UPDATE
Total Assets
$36.2m
Retail investment activity reached $7.5
billion in 2014, surpassing the $7.4 billion
in 2013, an all-time record high for the
third consecutive calendar year.
Gross Debt
$16.6m
Net Assets
$17.9m
Units on Issue
20.6m
NTA (with mark to market of
interest rate hedges)
$0.87
NTA (without mark to market
of interest rate hedges)
$0.91
Fund Expiry
April 2020
APIR Code
FLK0006AU
Investor demand for neighbourhood retail
centres has continued in the 1st quarter of
2015. Birkdale Fair, a Woolworths
anchored centre in the eastern suburbs of
Brisbane, sold in March for $23.3 million
on a yield of 7.44%, while Beaudesert
Fair, located between Brisbane and
Ipswich, sold in January for $18.5 million
on yield of 7.4%. These sales compare to
the Fund’s acquisition in April 2014 of The
Station Oxley on an 8.0% yield.
The latest ABS retail sales show that food
retailing grew in February by 1.2% monthon-month, after a 0.8% fall in January.
The trend in food retailing sales is
softening, partly reflecting the strong
competition between the major grocery
retailers which is pushing grocery prices
down. This was highlighted by Woolworths
in their 2nd quarter 2015 market update
where they reported food and liquor
quarterly sales growth (on a like for like
basis) was 1.2%, the lowest since 2012.
FURTHER INFORMATION
For further information please contact your
financial advisor or contact Folkestone as
per the details below.
Adrian Harrington
Head of Funds Management
t: 02 8667 2882
e: [email protected]
Lula Liossi
Investor Relations Manager
t: 03 8601 2668
e: [email protected]
Michael Baker
Head of Distribution
t: 02 8667 2888
e: [email protected]
w: http://folkestone.com.au/fundsmanagement/private-funds/oxley/
DISCLAIMER: This report is issued by Folkestone Funds Management Limited ACN 138 125 881 AFSL 340990 (FFM) as Responsible Entity of the Folkestone Real Estate Income Fund at Oxley (ARSN 167 537 199). The report has been published for information
purposes only. The information contained in this report is of a general nature only and does not constitute financial product advice. In preparing this report the author has relied upon and assumed, without independent verification, the accuracy and completeness of all
information available from public sources or which has otherwise been reviewed in preparation of the report. The information contained in this report is current as at the date of this report and is subject to change without notice. Past performance is not an indicator of
future performance. Neither Folkestone Limited (FLK), FFM, nor any of their respective associates, related entities or directors, give any warranty as to the accuracy, reliability or completeness of the information contained in this report. Except insofar as liability under any
statute cannot be excluded, FLK, FFM, and its associates, related entities, directors, employees and consultants do not accept any liability for any loss or damage (whether direct, indirect, consequential or otherwise) arising from the use of this report. All investment is
subject to investment risk, including possible delays in payment or loss of income and principal invested. None of FLK, FFM or any of their respective associates, related entities or directors guarantee the performance of the Fund or the repayment of monies invested.
Folkestone Funds
Management Limited
ACN 138 125 881 AFSL 340990
Sydney Office
Level 10, 60 Carrington Street
Sydney NSW 2000
Melbourne Office
Level 12, 15 William Street
Melbourne VIC 3000
e: [email protected]
www.folkestone.com.au
t: +61 2 8667 2800
f: +61 2 8667 2880
t: +61 3 8601 2092
f: +61 3 9200 2282