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 shopping centers. 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. The fund continues to achieve earnings and asset growth through redeveloping its existing assets and through new development projects. Expansion of its shopping centers,
