03 August 2005
Macquarie Bank Limited's Property Investment Management Division (Macquarie) today announced that its suite of listed property trusts delivered accumulated returns ranging from 22.0 per cent to 98.3 per cent for the 12 months to 30 June 2005, with all Trusts comfortably outstripping their sector benchmarks. The average return for the period weighted by market capitalisation across all Trusts at 30 June 2005 was 37.5 per cent.
The good news is set to continue for investors, who are increasingly embracing the relative risks and rewards of Australia's increasingly diverse LPT sector, says Simon Jones, the joint head of Macquarie Property Investment Management.
Mr Jones said the consistent outperformance of Macquarie's listed property trusts was underpinned by the group's focus on investing in established properties with high quality, long term tenants.
"Across all our listed trusts, our focus is on investing in core property assets that carry low risk and deliver consistent, sustainable returns to investors," Mr Jones said.
"This philosophy is at the heart of our property investment capabilities. We are taking a long term view and developing meaningful income growth strategies so investors can access strong risk adjusted returns without a large exposure to high risk property activity."
The performance in the 2005 financial year caps off 10 years of consistent performance and product innovation from the Macquarie Property team, which launched its first listed trust in 1993.
Today more than $A23 billion in property assets are managed under the Macquarie brand, across a portfolio of listed and unlisted property trusts, unlisted development funds and property investment syndicates, globally.
Mr Jones said Macquarie would continue to add to its suite of listed trusts as new opportunities emerged in Asia, Europe and the US. Macquarie currently offers investors exposure to a range of sectors through its individual trust strategies:
for 12 months
to 30 June 2005
Macquarie Office Trust
|Australian and US office||22.0%||2.1%|
|Macquarie Countrywide Trust (ASX: MCW)||Australian and US grocery based shopping centres||25.3%||1.5%|
Macquarie ProLogis Trust
|US industrial - warehouse facilities||24.8%||6.7%|
Macquarie DDR Trust
|US retail - community shopping centres||25.7%||1.9%|
Macquarie Leisure Trust Group
|Australian entertainment and leisure sector||98.3%||79.9%|
Macquarie Goodman Group
|Australian industrial and office parks||48.5%||30.4%|
Source: UBS Australia 2005
Outlook remains strong for LPTs
Mr Jones said despite reports of a subdued outlook for the LPT sector over the coming year, LPT prices were still favourable compared with direct property prices and investors who focused on growth sectors could expect strong long term returns.
"Like all asset classes, property moves in cycles and investors need to consider their risk exposure and reposition their portfolios towards new growth sectors and away from sectors that have had their run," he said. "In addition to a resurgence in the office sector both here and in the US, we're seeing strong returns from the US industrial and retail sectors which are booming in response to Americans'changing spending habits."
Macquarie Property entered the US market in 2001 and was one of the first managers to offer Australian investors ready exposure to US property through its locally listed trusts. Macquarie has focused on a joint venture strategy, whereby Macquarie partners with leading US real estate groups to ensure quality asset management and a strong pipeline of acquisition opportunities that grows returns for investors.
"The two US-focused trusts are enjoying strong support from Australian institutional investors and we look forward to growing our retail investor base as smaller investors appreciate the low risk/strong return outlook equation," Mr Jones said.
For further information please contact:
Chief Executive Officer
Macquarie Office Management Limited
Tel:(612) 8232 3333
Macquarie Property Investment Management
Tel:(612) 8232 7227
This document has been prepared by entities within the Macquarie Bank Group and Macquarie Goodman Group ("Companies") for the respective trusts that they manage. In providing this information, no Company has taken into account any person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of the information having regard to their own objectives, financial situation and needs.
Each Company receives fees for operating their respective trusts, which are calculated by reference to the value of the assets of that trust and according to performance. Entities within the Macquarie Bank Group may also receive fees for managing the assets of, and providing resources to the trusts. For more detail on fees, review each trust’s latest annual report.
Investments in any trust are not deposits with or liabilities of Macquarie Bank Limited (ABN 46 008 583 542) nor any other Macquarie Bank Group company and are subject to investment risk including possible delays in repayment and loss of income and principal invested. None of Macquarie Bank Limited, the Companies or any other Macquarie Bank Group company guarantees the performance of the trust or the repayment of capital from the trust.