The ratings on Goodman Australia Industrial Fund (GAIF) reflect our opinion of the fund's "satisfactory" business risk profile and "intermediate" financial risk profile. The satisfactory business risk profile is underpinned by stable cash flow generated from the fund's diversified industrial and office-park portfolio; GAIF's experienced property management and industrial property expertise; the fund's high occupancy levels; and its solid lease-maturity profile. These strengths are partly tempered by the fund's "moderate" financial policies and gearing. GAIF's gearing at 37.7% is near the maximum level under the fund's policies and, in our view, limits the fund's financial flexibility. Other weaknesses include GAIF's exposure to cyclical real estate market conditions. The fund aims to invest in and develop prime industrial and business space
