It is notable that the portfolio is presently skewed toward Adelaide (~50%) where government regulation and ‘red tape’ settings are arguably the best in the country, and where the economy and population is growing. Whilst these conditions persist, it is likely our bias will also.

As previously noted, market pricing has tightened, particularly on loan terms and conditions we consider acceptable. Like most, we await the market response to the yield curve’s short-end upward shift over the last month.

Notwithstanding, we continue undertaking rigorous due diligence, thus ensuring realistic project feasibilities, conduct critical examinations on external valuations, and ensure that loan terms allow for interest rises in line with RBA rate rises.