ASX ANNOUNCEMENT: ASX:QRI Quarterly Update – March 2023

16 May 2023

The Qualitas Real Estate Income Fund (ASX:QRI) March 2023 quarterly update is now available. Our Head of Income Credit, Mark Power provides an update on the portfolio and the key milestones achieved during the quarter. You can view the latest QRI portfolio update in the ASX announcement.

|   Questions asked

  • 0:06 – How did the QRI portfolio perform over the March quarter?
  • 0:52 – What’s an example of a recent loan that QRI financed?
  • 2:12 – What impact do you see rising interest rates and inflation having on QRI’s returns?

 

|   Highlights

  • QRI was added to the All Ordinaries index on 20 March 2023 and is eligible for inclusion in the ASX300 and ASX300 A-REIT index in September 2023 subject to meeting the relevant thresholds1.
  • The Trust’s capital was fully invested throughout the March quarter.
  • The $50m warehouse facility established in December 2022 was consistently drawn due to an expanding pipeline in commercial real estate credit.
  • QRI delivered a record annualised March distribution of 8.4% p.a.
  • Distributions in the March quarter exceeded inflation. This means that the portfolio delivered positive inflation adjusted returns which was rare in the current economic environment.
  • The variable rate loan exposure increased from 79% in December 2022 to 82% in March 2023.
  • Strong credit quality continues with no impairments or interest arrears as at 31 March 2023.

 

1. Subject to existing constituents falling below eligibility thresholds and being removed from the indices. Future inclusion in these indices is not known and inclusion is solely determined by S&P.

Disclaimer:

This communication has been issued and authorised for release 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 342242)).

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.