Lonsec has granted the highest possible ‘highly recommended’ rating to the Charter Hall Direct Industrial Fund (DIF4).
The research house said that the fund had a high-quality management team with a track record of delivering solid returns on direct property trusts, and that the fund had a conservative gearing target of 30 per cent to 45 per cent with a current LVR of 33 per cent.
“The fund seeks to benefit from growing tenant demand for long-term leases of large, well-located and adaptable industrial sites covering a variety of uses including logistics, distribution, storage, manufacturing and food processing,” Lonsec said.
“The portfolio is well positioned from a rental increase point of view, increasing by CPI or three per cent p.a., which helps provide a natural inflation hedge. Additionally, all direct properties bar one are leased on a triple-net basis, whereby the tenant is responsible for all outgoings, including maintenance capital expenditure.”
Also, the key features of DIF4 included a current income yield of six per cent pa and a fund WALE (weighted average lease expiry) of 10.4 years, which were among the highest in its class, it said.
The fund owns and manages well located industrial properties in established markets, with an existing portfolio of eight properties in NSW, Victoria, South Australia and Western Australia, plus an equity interest in a Charter Hall managed wholesale investment partnership that invests in 33 institutional-grade distribution centres across Australia.
It was currently available on the following platforms: Asgard, Direct, BT Wrap, BT Panorama, Macquarie, Netwealth, Hub24, Powerwrap, First Wrap and North.