GARDA Diversified Property Fund
The Fund is an ASX listed Real Estate Investment Trust (REIT) which intends to invest in commercial offices in city and suburban markets as well as industrial facilities along the eastern seaboard of Australia. The Fund currently holds eight established property assets valued at $183 million and an approximate market capitalisation of $120 million.
The Fund offers investors:
- FY2017 forecast distributions of $0.094 per unit per annum, to be paid quarterly;
- Exposure to a diversified commercial and industrial portfolio with a weighted average capitalisation rate of 8.13%;
- Income returns supported by leases to reputable tenants with structured rental growth (weighted average rent increase for FY2017 of 3.3%);
- A conservative capital structure and transparent fee arrangement; and
- Access to the expertise and experience of the GARDA Capital Group.
|Asset Under Management||$183,000,000|
|Funds Type||ASX listed property trust (AREIT)|
|Fund Status||Open to trade on ASX|
|FY2017 Forecast Distributions||$0.094 per unit p.a. (paid quarterly)|
|Net Tangible Assets (NTA)||$1.11 per unit (Dec-16)|
|Leasing Metrics||as at 31 December 2016|
|Net Lettable Area (NLA)||59,074sqm|
|Weighted Average Lease Expiry (WALE)||3.8 years|
|Sector (by income)||84% commercial 16% industrial|
The Fund’s objective is to provide sustainable and growing distributable income derived from investments in commercial offices in city and suburban markets as well as industrial facilities along the eastern seaboard of Australia.
The Fund’s investment and growth strategy is intended to be achieved through:
- Investing in commercial office located in both city and suburban office markets as well as industrial facilities along the eastern seaboard of Australia;
- Investing in assets comprising a balance of:
- Assets demonstrating the potential for stable long term cash flows; and
- A proportion of higher yielding and active management assets where the responsible entity intends on improving both the income profile and capital value of those assets.
- Investing in a portfolio diversified by building type, location and tenant;
- Investing in properties with structure rental growth;
- Maintaining a conservative capital structure and long-term target gearing of 30% to 35%;
- Providing investors with the potential for capital growth overtime; and
- Accessing the GARDA Capital Group expertise and experience in asset and capital management.
The St. George Bank debt facility was initially drawn to $42.6 million and fixed at a rate of 3.845% for a 4 year period.
Repayment of $20 million in January 2017, with a subsequent $1.5 million draw to finance the ongoing capital improvements program, sees the facility drawn to $61.1 million (as at 15 February 2017) with a facility limit of $83.6 million.
LVR is 33.5% and GDF holds an acquisition capacity of up to $35 million.
The following terms are part of the current debt facility:
- Facility limit of $83.6 million;
- LVR covenant of less than or equal to 50%; and
- ICR covenant greater than or equal to 2.5 times.
Top 5 Tenants
|@ 30 June 2016||Income ($'000)||% of Total|
|Commonwealth Government (CASA)||$2,798||14%|
|J Blackwoods & Sons||$2,449||12%|
|QLD State Government (DTMR)||$1,707||8%|
Lease Expiry Profile
- 31 December 2016 Interim Financial Report
- 30 June 2016 Annual Financial Report
- 31 December 2015 Interim Financial Report
- 30 June 2015 - Annual Financial Report
- 31 December 2014 Interim Financial Report