Oops! We could not locate your form.

May performance for our open funds

Trilogy Monthly Income Trust (Trust)

The Trilogy Monthly Income Trust (Trust) returned a net distribution rate of 4.90% p.a.* annualised to investors for the month of May 2022.

Thirteen new loans settled during May at a total approved loan amount of $68.02 million. Loan repayments during the month totalled $9.10 million with drawdowns totalling $16.80 million.

Rate-trilogy_May_TMIT

In addition to the usual active management of the Trust’s full portfolio, various members of the lending committee recently visited many of the Trust’s financed projects in Sydney and Melbourne and I am pleased to report that they are all currently tracking as well as expected.

We continue to monitor the various influences on the construction sector, market valuations and buyer demand in relation to the Trust.

As part of the loan application process, we review all borrowers, sponsors, and their proposed builders to help ensure that they have the appropriate experience and capability to complete the proposed project. In addition, we test their project assumptions for factors including market changes and may include higher levels of contingency amounts where appropriate in final approvals. We will continue to work closely with our borrowers to monitor and minimise any influences on their projects.

We are currently seeing steady buyer demand across the locations where the Trust’s projects are based. We expect the level of buyer interest to normalise over coming months to more historical trends. However, factors such as limited availability of new completed stock and low rental vacancy rates support sustained demand and current project valuations. We continue to have a robust pipeline of loan opportunities.

Trilogy Enhanced Income Fund (Fund)

The Trilogy Enhanced Income Fund (Fund) returned a net distribution rate of 2.35% p.a.* annualised to investors for the month of May 2022.

The Fund’s strategic allocations are designed to minimise the impacts of market volatility.

Rate-trilogy_May_TEIF

We have seen the fixed income market continue to wean itself off the ultra-expansionary monetary and fiscal policies that have been injected into the economic system over the past several years. As part of this readjustment, areas of repricing have created the opportunity for investors to reposition their portfolios into the upcoming expected tightening cycle.

Broadly speaking however, expectations of tightening have already been factored into market pricing with an aggressive policy stance by central banks seen on the horizon. We will monitor how aligned market expectations are with central bank actions.

The Fund increased its holdings in term deposits and reduced exposure to some underperforming assets during the month. Some of our floating rate note holdings are well positioned to capitalise on rising rates and are expected to improve over coming months. We also retain flexibility in our allocations to take advantage of movements in the market.

Trilogy Industrial Property Trust (Industrial Trust)

From this month onwards, we are reporting the distribution rate for the Trilogy Industrial Property Trust (Industrial Trust)  as a cents per unit (CPU) figure.

As more investors have now acquired units at variable unit prices, this change makes it easier for investors to calculate their yield.

We are also now providing historical performance data for distribution rate and unit price. The unit price for 1 May 2022 was $1.0882.

Rate-trilogy_May_TIPT

A contract has been signed to add a new asset to the Trust – 6 Ron Parkinson Crescent, Corbould Park, QLD 4551. The property is expected to settle on or around 10 June 2022 and at settlement will have a lease with 9.7 years remaining, improving the overall weighted average lease expiry (WALE) of the Industrial Trust.

In addition, as part of the Industrial Trust’s value-add strategy, we have been working with Tempur Australia, who lease the Industrial Trust’s asset at Colemans Road, Carrum Downs, VIC to construct a warehouse extension. The extension of approximately 550 square metres will increase Tempur’s capacity at this location. A new lease agreement has also been signed which covers the warehouse extension, and extends the term of the lease by two years. Construction is expected to commence in July and be completed around October.

*Net distribution paid to investors calculated daily and paid monthly in arrears for the month ended 31 May 2022. Net distributions are variable each month and are quoted net of management fees, costs and assume no reinvestment. Past performance is not a reliable indicator of future performance.
**The Trilogy Industrial Property Trust (Industrial Trust) has paid investors an average of 7.60 CPU p.a. annualised for the 12 months to 31 May 2022. Distributions are variable each month, net of management fees, costs and assume no reinvestment. Distributions are paid monthly in arrears. Please note, past performance is not a reliable indicator of future performance.

Distributions

Distributions for our funds will be paid on or around Friday 10 June 2022, being the 8th business day of the month.

If you have any questions about the topics mentioned, please contact our Investor Relations team on 1800 230 099 or at investorrelations@trilogyfunds.com.au

We also encourage investors to regularly check the Trilogy Funds website as any significant updates that occur between our monthly company update emails will be posted on the site.

Yours Sincerely,

Philip Ryan | Trilogy Funds

Philip Ryan
Managing Director
Trilogy Funds Management Limited


This communication is issued by Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the management investment schemes mentioned in this communication. Application for investment can only be made on the application form accompanying the relevant Product Disclosure Statement (PDS) and the Target Market Determination (TMD) available at www.trilogyfunds.com.au. The PDS 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, together with the TMD. All investments, including those with Trilogy Funds, involve risk which can lead to loss of part or all of your capital or diminished returns. 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 are not bank deposits and are not government guaranteed.