Investor Update


Download   PDF Version – SRPI Fund Update – 21 May 2021


The Fund completed development of its pilot program properties between June and October 2020 and is pleased to confirm that each of the first six properties in the Fund’s portfolio are fully tenanted.

   Measurable social outcomes

In successfully completing its pilot – which consists of six four-bedroom, three-bathroom homes, each accommodating two tenants with high physical support needs, the Fund has been able to meet its core objective of successfully delivering important and measurable social outcomes.

Investors can be proud that each of the 12 tenants has seen a material improvement in their accommodation arrangements and lives. Importantly these improvements have reached not just the tenants, but their families and carers as well.

   Strong gross yields

Over and above these vital social outcomes, the Fund has also met its forecasted returns for its Investors. At completion, each property in the pilot program is delivering an average gross yield of 14.47% pa against their all in delivered cost, and 12.07% pa against formal valuation and carrying value. This is in line with the returns targeted in the Fund’s PDS.

   Prudent gearing helping returns

On completion of the pilot program, the Fund’s sub-trust entered into a financing arrangement with Arch Finance which enabled the Fund to limit the number of units required to be issued to complete and settle the first round of properties which represented a significant advantage for existing unit holders.

At the time of publication of this document the Fund had $1,050,00 of total secured and interest-bearing debt (held at the Sub-trust level) representing a Gearing Ratio of 19.2% calculated as interest-bearing liabilities of $1,050,000 against Total Assets of $5,455,682. This is in line with PDS disclosures and within the Fund’s target range of maintaining gearing at or below 20% of gross assets.

The debt is incurring annulised interest expense of $50,925, against annualised EBITDA at a sub trust level of $507,000; and $344,000 at the Fund level. This represents an interest cover ratio (ICR) of 10 at a sub trust level and 6.75 at a Fund level – well within the bounds of the Fund’s ICR policy.

   Since inception performance

The Fund has been in operation for just under 2 years and has been able to successfully meet its return targets through a combination of unit price growth and distributions. On a volume weighted basis, the Fund has returned 8.22% pa to Investors.

Distributions

The table below represents the distributions paid to date and those forecast for the remainder of 2021:

Date paid (or due)($)
January 20210.0200
February 20210.0150
April 20210.0125
July 2021 (forecast)0.0175
October 2021 (forecast)0.0175
Total0.0825

The forecast cash distribution of 8.25c per unit for the calendar year meets or exceeds the Fund’s initial 8.25% pa target when assessed against either the initial unit price of $1.00 (8.25% pa) or the average unit issue price of $0.98 (8.44% pa).

Closed for new investment

The Fund is currently closed for new investment. As and when new opportunities are identified a new PDS will be issued.

Investment manager

Spring FG Funds Management Pty Ltd is the investment manager of the Fund and is responsible for managing and administering its investments and for marketing the Fund. Its related body corporate Spring FG Realty Pty Ltd is responsible for real property asset due diligence and acquisitions and disposals; and developing and overseeing asset management plans. As a registered SDA provider, it is also responsible for enrolment and operation of Fund properties in the SDA scheme.

Contact us

Spring FG Funds Management Pty Ltd Level 11, 95 Pitt Street
Sydney NSW 2000
T 02 9248 0480
info@srpfund.com


Disclaimer
The information on this website is general financial product advice only. It has been prepared without taking into account your objectives, financial situation or needs and because of that you should, before acting on the information, consider the appropriateness of the information having regard to your objectives, financial situation and needs. If and when the Fund is open for new investment, you should obtain the product disclosure statement (PDS) relating to the offer of units in the Specialist Resident Property Impact Fund (Fund) and consider the PDS and related documents and understand the Fund’s target market before making any decision about whether to acquire, or to continue to hold, units in the Fund. You should also review the Fund’s design and target market determination (Target Market) in the Fund Highlights section of this website to determine if the you fall within the Target Market. Spring FG Funds Management Pty Ltd (ABN 36 611 176 517) (authorised representative number 001274191) is the provider of the information on this website and the issuer of units in the Fund is One Managed Investment Funds Ltd (ABN 47 117 400 987) (AFSL 297 042).