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AREITs looking relatively composed amidst global uncertainty
The property sector is emerging relatively composed amidst global market uncertainty. Investor confidence continues to be tested with concerns surrounding China’s growth prospects, a sluggish US recovery and European debt issues. AREITs continued to outperform the broader market (S&P/ASX 200) by 1.75% throughout June. For the financial year ending 30 June 2010, the AREIT sector outperformed the S&P/ASX 200 by 7.5%. Having largely returned to their original rent collecting model, the sector is being rewarded as investors shift their preference from high risk equities to more defensive investments. Whilst headwinds remain, on balance the prospects for the property sector look positive. With the AREIT Index trading on a distribution yield of 6.2%* (earnings yield 7.69%**) and at around 9% discount to Net Tangible Asset value, there is clearly value in the sector. Our newest real estate securities fund, the APN AREIT Fund is currently yielding well over 8% and has outperformed the AREIT Index by 3.94% for the 12 months to 30 June 2010. *Source: UBS Monthly (June 2010) **Source: APN FM (June 2010)
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Providing you with information that really hits the mark Our aim is to provide you with a comprehensive monthly update on relevant issues to ensure you are kept abreast of the rapidly changing landscape in the listed and direct commercial real estate sector as well as activity specific to APN Property Group. We welcome your feedback on suggestions for improving the way we communicate or topics that would be of interest to you. Click here to share your thoughts with us. For further information, please contact one of our Key Account Managers or the Adviser Services hotline. Yours sincerely,
APN Property Group
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Since redemption facilities were initially suspended in October 2008, we have assessed numerous options and have been working hard at structuring a viable liquidity solution for our APN Property for Income funds. We are close to finalising a solution that, with appropriate approval from regulators, will provide the most practical and equitable alternative to create liquidity for investors. The proposed solution will be a first for managed funds in Australia. Click here to find out more...
The BT Wrap Advantage Spotlight is scheduled on Wednesday 28 July 2010 and is both a live event in QLD and national webcast commencing at 12.30pm. The Spotlight topic ‘Investment markets – what’s going on?’ will explore the burning issues facing investment markets.  | | APN’s own Michael Doble, CEO Real Estate Securities is one of the keynote speakers and will discuss the factors driving the stabilisation of the AREIT market as well as the impending issues facing the property sector.
You will also have the opportunity to hear from key local and international Portfolio Managers, | | along with BT Financial Group's Chief Economist Dr Chris Caton. | You can register for the webcast event here.
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