The ratings on Australian Prime Property Fund – Retail (APPF Retail) reflect the company's strong asset quality and market position, its operating stability, and a moderately conservative financial policy. These strengths are tempered by the fund's exposure to development risks and cyclical discretionary spending. The fund enjoys a strong market position, benefiting from its high-quality assets, which are well located in Australia. The fund's operating stability is supported by its geographic diversity, a well-diversified tenant base, well-spread lease expiry profile, and low vacancy. These strengths help offset exposure to cyclical retail spending. Although the fund continues to expand its existing centers to improve and sustain their earnings potential, these projects expose the fund to disrupted trading and uneven rental income.
