Australian Prime Property Fund Retail

Overview Key strengths Key risks Portfolio of prime-quality shopping centers in population growth corridors across Australia. Diminished portfolio size; any further erosion in the portfolio's scale or quality could pressure the rating. Diverse tenant base, high occupancy, and well-spread lease expiry profile. Soft consumer sentiment due to cost-of-living pressures, albeit improving. Access to Lendlease Group's integrated end-to-end business model and experienced asset management team. As the fund has met equity redemption requests with asset sales, its portfolio size and geographic diversity have diminished, thereby eroding the portfolio's scale. This weighs on the rating. We would expect the fund manager to articulate its "urban growth" strategy further before the next unitholder redemption window starts in November 2025. Unitholders will likely consider

...Australian Prime Property Fund Retail (APPF Retail) faces heightened risks from a less- diversified shopping center portfolio. As the fund has met equity redemption requests with asset sales, its portfolio size and geographic diversity have diminished, thereby eroding the portfolio's scale. This weighs on the rating. We would expect the fund manager to articulate its "urban growth" strategy further before the next unitholder redemption window starts in November 2025. Unitholders will likely consider this strategy when determining whether to exercise a redemption request. Closer to this...

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