High-quality portfolio of shopping-center assets Favorable competitive position due to town-planning restrictions in Australia Portfolio diversification by geography, asset, tenant, and length of lease Exposure to discretionary consumer spending and tenant-demand cycles Very conservative gearing policy Upward pressure on APPF Retail's gearing, partly due to recent unit redemption Ongoing capital-expenditure requirements for center expansions and development The rating outlook is stable. We believe that Australian Prime Property Fund Retail's (APPF Retail) very conservative financial policies, together with the stable rental-derived cash flow from its high-quality portfolio of shopping-center assets, should underpin its debt-servicing capacity and credit quality. The 'A+' rating anticipates that APPF Retail will continue to follow its target gearing range of 10%-15% over the long term. Currently gearing
