1503 Mar Newsletter - Final - Denison | Funds Management
Transcription
1503 Mar Newsletter - Final - Denison | Funds Management
Denison Diversified Property Fund CEO’s Update Quarterly Update- 31 March 2015 Dear Investors, Denison Funds Management Limited (‘Denison’) as responsible entity for the Denison Diversified Property Fund (‘DDPF’ or ‘Fund’), is pleased to present Investors an update on their investment in DDPF. Asset Management Update During the March Quarter, we have undertaken significant capital works across the portfolio. This has included the completion of exterior painting at the Blacktown asset and the replacement of a large awning at the Campbelltown asset. We believe this has significantly improved the appearance and value of these assets. During this quarter, we have been successful in securing new and existing tenants across the portfolio in what has proven to be a challenging leasing market for the start of 2015. Notably we have renewed the existing major tenant, Department of Community Services, at Shellharbour for a new 4-year lease term. They occupy 1,318 sqm at Shellharbour, which represents 42% of the total net lettable area (NLA) at this asset. We have also been successful in leasing the last remaining vacant space at the Artarmon asset. The new tenant, Prime constructions have leased 1,195 sqm for 6 years. We are pleased to confirm Artarmon is now 100% occupied with a strong 5-year weighted average lease expiry (WALE). Investor Survey Thank you to the investors who have completed the investor survey, your valued feedback is appreciated. We had noted in the last newsletter that the survey should be completed by 30 April 2015, as we are still receiving responses we have extended the completion date to 31 May 2015. We urge those investors who have not yet completed the survey to take this opportunity provide their valued feedback. The survey can be completed online via our website or by completing the paper survey mailed with the last newsletter. We are pleased to offer a $25 Coles/Myer gift card to the first 100 respondents. The results of the survey will be published in out next quarterly update. As always, we will keep Investors updated via quarterly newsletters and more regular updates on our activities via our website www.denisonfm.com.au. Warm regards, Matthew Burrows CEO, Denison Funds Management Limited Denison Funds Management Limited (ACN 095 920 648) operates under AFSL: 224 663 A. Level 45, 19 Martin Place, Sydney NSW 2000 Registry 1300 935 900 Head Office +61 9222 8222 W. www.denison.com.au E. [email protected] DDPF Snapshot DDPF – Snapshot Number of Assets Value of Portfolio Occupancy Rate WALE (Area) –Years Net Assets Units on Issue* Unit Price ** Gearing Ratio*** 31-Dec-14 31-Mar-15 Asset Snapshot 17 17 $213,700,000.00 $213,700,000.00 89.22% 89.40% 3.94 3.75 Financial Snapshot – 31 December 2014 $46,294,387 $46,609,043 106,182,005 106,182,005 $0.44 $0.44 76.20% 76.20% Change 0% 0% 0.2% -4.8% 0.7% 0% 0% 0% * Units on Issue are inclusive of the preference units which rank in priority to fully paid ordinary units. The redemption price of the preference units is equal to the price at time of issue. Rounded to 2 decimal Places. ** As part of the FARI III Bond, DDPF issued warrants to FARI III that are able to convert to ordinary DDPF units. If exercised, the warrants will represent approximately 30% of DDPF’s units on a fully diluted basis (based on issued units at the time of exercise). *** Gearing Ratio - Total Interest Bearing Liabilities / Total Assets Market Update National Overview Over the last six months, commodity prices have collapsed from their 2014 highs pushing volatility into the domestic economy and triggering difficulties for both government and business. Given the commodity price driven nature of the Australian economy, monetary policy is beginning to play a central role in stimulating the domestic economy with staggered rate cuts in 2015. The drop in Australian interest rates have driven investors’ appetite for yield and they are investigating alternate asset classes. Commercial, industrial, retail, and residential property have benefited from this monetary stimulus with cap rate compression a core depiction of the general property market. In more detail, the property market is divided between mining and non-mining states, showing Sydney and Melbourne continuing to outperform Brisbane and Perth. Limited CBD buying opportunities as well as investors risk appetites are increasing property values in the secondary CBD office, metro office, and industrial markets. The suburban property sectors within Australia are currently undergoing a valuation shift, reflecting the limited supply and a move to CBD periphery markets. The differential between the prime, secondary and suburban markets are beginning to tighten with suburban properties showing the strongest compression ratios within the last six months. Rental growth is forecasted to remain flat in the near term and valuation increases accredited to cap rate compression rather than underlying property fundamentals. CONTACT US Registry Services E. [email protected] P. 1300 935 990 Denison Funds Management Limited C/- Link Market Services Limited PO Box 3721, Rhodes NSW 2138 Head Office E. [email protected] P. +61 2 9222 8222 W. www.denisonfm.com.au Denison Funds Management Ltd Level 45, 19 Martin Place Sydney, NSW 2000 Disclaimer: This newsletter contains general information only taken from sources believed to be accurate. The accuracy, adequacy or completeness of any information and any forward looking statement is not warranted. No account is taken of the needs, objectives and circumstances of any particular person and liability is not accepted for any decision made in reliance on this information. Past performance is not an indicator of future performance. Denison Funds Management Limited (ACN 095 920 648) operates under AFSL: 224 663 A. Level 45, 19 Martin Place, Sydney NSW 2000 Registry 1300 935 900 Head Office +61 9222 8222 W. www.denison.com.au E. [email protected]
Similar documents
$20.00 Craft /Vendor______ Chili Team (free)______ Register by December ... Contact Name ________________________________________________________
More information
Find the Investment Opportunities in Dubai at INV500
Are you looking for investment opportunities in Dubai? Find the investment pitches, lead business investors, entrepreneurs to partners and start up ideas in Dubai, UAE at inv500.com. Register today for free & access investment opportunities! Visit Us: http://inv500.com/
More information