The ratings on Goodman Australia Industrial Fund (GAIF), an unlisted Australia-based wholesale property trust, reflect our views on the fund's "satisfactory" business risk profile and "intermediate" financial risk profile. Factors which support the fund's business risk profile include its relatively stable cash flow generation derived from a high-quality portfolio of industrial and office park assets; strong market position and an experienced property management team; high occupancy levels; and solid lease-maturity profile. Partly tempering these strengths is our view of the fund's susceptibility to cyclical real-estate-market conditions and the potential for increased exposure to property development. The fund's strategy to invest in prime industrial and business space assets as well as its diversified tenant base underpin the portfolios' stable cash flows.
