Qualitas Real Estate Income Fund (ASX: QRI) - Review October 2021
Full report is available atThe Qualitas Real Estate Income Fund (ASX: QRI) is a Listed Investment Trust (LIT) that
listed on the ASX in November 2018, raising $231.2m through the issue of 144.5m ordinary fully paid units at $1.60 per unit. Since listing, the Trust has grown through the issue of new units to both new and existing unitholders. At 31 August 2021, the Trust had a market cap of $441.2m with 267.4m units on issue. The Trust invests in the Qualitas Wholesale Real Estate Income Fund (“Sub-Trust”), which in turn provides direct and indirect exposure to a portfolio of secured commercial real estate (CRE) loans, predominantly in Australia with up to 20% of the portfolio able to be invested in New Zealand. QRI Manager Pty Ltd (the “Manager”) is the Investment Manager of the Trust. The Manager is a wholly owned subsidiary of the Qualitas Group (Qualitas), a real estate investment management firm with approximately $3.7 billion funds under management. The Trust has a target distribution return of RBA Cash Rate + 5.0%-6.5%p.a (net of fees and expenses) and pay distributions monthly. The Manager is paid an annual management fee of 1.5375% (including GST) of the Trust’s NAV and is eligible for a performance fee of 20.5% (including GST) on the outperformance of the performance hurdle (cumulative net return of 8.0%p.a). Any direct loans made by the Sub- Trust will receive loan origination fees. There is a fee sharing arrangement whereby up to 33% of these fees will be passed on to the Manager in the event the Sub-Trust is the sole lender and up to 100% will be paid to the Manager in the event the Sub-Trust is a co-lender.
Qualitas Real Estate Income Fund. Qualitas Real Estate Income Fund (The Trust) is an Australia-based real estate investment trust. The Trust's objective is to provide monthly income and capital preservation by investing in a diversified portfolio of investments that offers exposure to real estate loans secured by first and second mortgages. The Trust's manager seeks to invest the Trust's capital in a portfolio of Australian secured real estate loans in line with its public distribution system (PDS). It also intends to invest in secured real estate loans in New Zealand from time to time to provide further investment diversification. The Trust's manager is QRI Manager Pty Limited.
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