The ratings on Australian Prime Property Fund – Retail (APPF Retail) reflect the fund's strong market position, high-quality retail assets, very high degree of operating stability, and conservative financial policy. These strengths are tempered by the fund's ongoing capital-expenditure requirements for development projects and exposure to cyclical discretionary spending. The fund's underlying credit quality remains strong and highly stable, reflecting a portfolio of high-quality and well-located retail property assets. A high degree of operating stability is further supported by the portfolio's geographic diversity, diverse tenant base, long and well-spread lease-expiry profile, and very low vacancy rates. APPF Retail continues to achieve earnings and asset growth through redeveloping its existing assets. However, expansion of its current assets exposes the fund to
