As 2024 draws to a close, Trilogy Industrial Property Trust celebrates another year of exceptional achievements, reaffirming our commitment to delivering tax-effective income and capital growth through strategic investment in high-quality industrial property.

Key Achievements

Award-winning fund

We were finalists for the third consecutive year for the Financial Newswires / SQM Property Fund Manager of the Year award.

Expansion of the Property Team

This year, we strengthened our capability by expanding the property team. We now have a dedicated team in key roles including: Fund Manager, Development and Asset Manager, Property Fund Analyst, and Property Asset Manager.

Our team has a diverse background of experience, and our new team structure and bolstered capacity will enhance our ability to extract maximum value for investors and secure profitable acquisition and divestment deals for the portfolio.

Successful divestments in Queensland and South Australia

Torrington, Queensland

An impending lease expiry at our Torrington asset posed a potential vacancy risk for the portfolio. Compounding this, rising interest rates had significantly increased the construction costs for developing the site rendering the planned development unfeasible. In response, we successfully negotiated a sale to a neighbouring owner at $650,000 above the book value. This strategic transaction not only mitigated potential vacancy risk but also allowed us to redeploy the capital to new acquisitions, enhancing the overall strength and diversification of the portfolio.

Gillman, South Australia

The sale of 113-117 Bedford Street, Gillman, South Australia, showcased our disciplined asset selection and management process. Acquired in 2018 for $14 million, the property was sold in October 2024 for $20.0 million, delivering an internal rate of return (IRR) of 18.34% p.a. This achievement demonstrates our ability to navigate market cycles and maximise asset value.

Strategic acquisitions

Brendale, Queensland

Acquiring a fully-tenanted, high-performing asset in Moreton Bay added geographic and tenant diversification to our portfolio. The tenant, Modern Star, has been in operation for over 65 years, is a leader in the early learning supplies sector and has been a tenant for over 20 years. With a yield exceeding 7% and a WALE over five years, this acquisition represents a strategic investment in one of Australia’s leading industrial precincts.

North Geelong, Victoria

Our purchase of the Corio Quay Road property, anchored by a long-term lease to global apparel icon Quiksilver, highlights our commitment to investing in high-growth regions. Adjacent to the Port of Geelong and located in a tightly held precinct, this asset offers excellent connectivity and supports the region’s burgeoning economic prospects.

House view on the industrial property sector

Industrial property continues to present strong investment opportunities, underpinned by several favourable economic and demographic trends:

• Interest rate cycle: Any cuts in official interest rates next year, along with cap-rate compression, will drive capital growth in the sector.
• Supply and demand dynamics: National industrial property vacancy rates remain below 2%, reflecting a resilient market and keeping the balance of bargaining power on the supply-side.
• E-commerce and logistics boom: The demand for warehousing and logistics facilities grows as e-commerce drives industrial activity.
• Population growth: With Australia’s population projected to grow by 400,000–600,000 annually for the next few years, industrial property demand is set to rise, requiring approximately 4 sqm of space per new resident.
• High construction costs: Elevated construction expenses limit new supply, putting upward pressure on property values. This also has the impact of reducing the level of competition presented by new assets to the supply side.

Request a copy of our latest report ‘The time for industrial is NOW’ to learn more about the key economic and demographic trends driving this exciting sector.

Looking ahead

With these achievements and the strong fundamentals of the industrial property sector, the Trilogy Industrial Property Trust is well-positioned to deliver consistent income and capital growth for our investors. We thank our stakeholders for their continued trust and partnership as we pursue strategic opportunities in 2025 and beyond.

If you’d like to learn more about investing in the Trilogy Industrial Property Trust, contact us today.

This article is issued by Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the Trilogy Industrial Property Trust ARSN 623 096 944. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 11 September 2023 and by considering the Target Market Determination (TMD) dated 11 September 2023 for the Trilogy Industrial Property Trust ARSN 623 096 944 available at www.trilogyfunds.com.au. The PDS and the TMD contain full details of the terms and conditions of investment and should be read in full, particularly the risk section, prior to lodging any application or making a further investment. All investments, including those with Trilogy Funds, involve risk which can lead to no or lower than expected returns, or a loss of part or all of your capital. Trilogy Funds is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy Funds are not bank deposits and are not government guaranteed. Past performance is not a reliable indicator of future performance.