Research and ratings house, Zenith, has handed the Australian Unity Diversified Property Fund (DPF) a “recommended” rating.
Zenith described the Australian Unity product as an “open-ended unlisted property trust strategically placed to provide investors with a diversified exposure to a portfolio of commercial real estate assets”.
The ratings house noted that since taking over the Fund in 2010, management had been dedicated to reworking and rationalising the fund portfolio, focusing on recycling capital and rebalancing the assets to a mix deemed more appropriate to their long-term strategy.
“Following the disposal of several assets the strategy now turns to recycling capital with management intending to undertake new acquisitions in the near future,” the analysis said. “Zenith retains a strong level of conviction in Australian Unity Property Limited’s property team which underpins our faith in the ongoing strategy execution.”
“While longer term total returns influenced by previous management have been disappointing, over the short-medium term returns have steadily improved while continuing to generate solid income yields,” it said.
