The fund’s result will amplify what is expected to be a dominant theme in the current reporting season, with a wave of writedowns expected across the sector.
The $37 million sale of a Coles supermarket was struck on a 4.42 per cent yield, only marginally higher than the 4.1 per cent cash rate set by the RBA on Tuesday.
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A capital raising for a new fund to acquire Adelaide’s Brickworks Marketplace comes amid increased interest in individual retail assets and smaller malls.
Property trusts are particularly vulnerable to interest rate rises – which chew into their cost of borrowings – and inflation spikes, which can race ahead of rental income.