In September 2008, the Australian Securities & Investments Commission (ASIC) released Regulatory Guide 46 (RG 46) setting out eight principles for improved disclosure to help retail investors compare risks and returns across investments in the unlisted property sector.
The eight disclosure principles are:
Disclosure Principle 1 – Gearing
Look-through Gearing Ratio: 45%
as at 30 June 2011.
The Fund does not have any direct borrowings of its own. Look-through gearing ratio refers to the information in relation to the underlying property investments held by the Fund.
Disclosure Principle 2 – Interest Cover
The Fund does not have any direct borrowings of its own, therefore interest cover disclosure is not applicable.
Disclosure Principle 3 – Borrowing
The Fund does not have any direct borrowings of its own, therefore borrowing disclosure is not applicable.
Disclosure Principle 4 – Portfolio Diversification
as at 30 June 2011.
Weighted Average Lease Term (by income): 4.38 years*
Weighted Average Portfolio Occupancy: 99.5%*
*Values are on a look-through basis.
Top Five Tenants
There are three tenants constituting 5% or more of income across the investment portfolio: Woolworths Supermarkets (6.6%), Coles (6.2%) and Kmart (6.1%).
Investment Strategies
The investment objectives and strategies of the DPF are set out in Section 4.1 of the Product Disclosure Statement (PDS). Section 4.2 of the PDS sets out details relating to the Investment Policy of the DPF. Click here to view the PDS.
Disclosure Principle 5 – Valuation Policy
The Manager of the DPF reviews the unit price on a daily basis. Changes are made to the unit prices when there are changes in the underlying investments or if the Manager expects there to be changes based on market conditions. The unit price is also adjusted to record income and expense accruals. Click here to view the DPF’s Unit Pricing Policy.
Disclosure Principle 6 – Related Party Transactions
Details on related party transactions are disclosed in the annual financial statements. Refer to Note 16 of the 30 June 2011 Annual Financial Statements. Click here to view the statements.
All Related Party Transactions are governed by Centro’s Conflicts of Interest and Related Party Transaction Policy. Please click here to view this policy.
The following related party fees were paid or payable to Centro during the 12 months to 30 June 2011:
| Centro Direct Property Fund |
12 months to 30 June 2011
$000s |
| Responsible Entity Fees (net of rebates) |
5,937 |
| Accounting Fees |
34 |
| Legal Fees |
23 |
| Taxation Fees |
44 |
| Compliance Fees |
23 |
Disclosure Principle 7 – Distributions
Section 7.7 of the PDS sets out details relating to distibutions.
The current distribution strategy is to maximise the ongoing payment of income distributions. It is difficult to accurately forecast future distributions, as they are dependent on the underlying funds and their capacity to pay distributions.
DPF quarterly income distributions are expected to be paid on or around 10 November, 10 February, 10 May and 10 August each year.
Disclosure Principle 8 – Withdrawal Arrangements
In normal circumstances, Investors have a general right to request the Responsible Entity (RE) to redeem their investment at any time. Subject to the applicable Withdrawal Policy, the RE is required to pay investors the withdrawal price for their units within 365 days of receipt of the withdrawal request.
The RE may formulate, and may vary from time to time, the Withdrawal Policy in relation to the above redemption right. The currently applicable Withdrawal Policy permits the RE to suspend redemptions on the grounds of extraordinary circumstances. Redemptions are currently suspended on this basis.