Small portfolio of good-quality shopping center assets Favorable market position for majority of the assets Modest portfolio diversity by geography and tenant base Exposure to competitive developments Conservative gearing policy Modest level of developments over the next two years Exposure to retail spending environment The stable rating outlook reflects Australian Prime Property Fund Retail's (APPF Retail) reasonably strong portfolio of assets and their stable cash flow profile. We expect the planned development of some of APPF's retail centers will enhance the fund's asset quality. Further, we believe APPF Retail will fund these developments within its conservative policy of debt-to-total assets of about 10%-15% on a look-through basis. Any potential weakening in the fund's asset quality, change in operating strategy toward
