Freehold Debt Income Fund

A real estate debt fund that aims to deliver regular income from a diversified, and conservative, portfolio of debt secured by real estate. The portfolio of underlying loans is primarily secured by registered first ranking mortgages held over Australian property, mostly on the east coast of Australia. The fund is only open to wholesale or sophisticated investors.


8.64% p.a.(1)
since inception

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Monthly
Distributions (2)

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Diversified Across
33 Projects (3)

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98%
Secured (4)

How does it work?

The fund aims to deliver regular income from a diversified, and conservative, portfolio of debt secured by real estate. The portfolio of loans is primarily secured by registered first ranking mortgages held over Australian property, mostly on the east coast of Australia. The loans finance a mix of real estate development, construction and ownership.

Real estate debt is not dissimilar to traditional bank debt. The lender, in Freehold's case, the fund, provides capital to finance the purchase of land, or for the development or redevelopment of a property and in return, receives interest on the loan. The interest on the loan is paid to the fund either monthly, quarterly, or capitalised and paid at the end of the loan term. Each month, the fund collects the interest paid from borrowers and distributes net income as distributions to investors. The fund targets an annualised net return to investors of between 7 - 8%.

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Fund Performance

Monthly Returns Oct
2019
Nov
2019
Dec
2019
Jan
2020
Feb
2020
Mar
2020
Apr
2020
May
2020
Jun
2020
Fund Performance (monthly) 0.71% 0.69% 0.72% 0.72% 0.64% 0.73% 0.67% 0.72% 0.68%
Fund Performance (annual) 8.58% 8.32% 8.61% 8.70% 7.69% 8.82% 7.99% 8.66% 8.15%
Distribution - 0.56% 0.67% 0.68% 0.69% 0.68% 0.47% 0.59% 0.94%
Distribution (annualised) - 6.75% 8.01% 8.11% 8.23% 8.15% 5.62% 7.04% 11.26%

Looking ahead in real estate debt

Over the next 6 - 12 months, there will be less housing stock released into a government stimulated market with improving consumer sentiment. We see these as positive signs for the real estate debt sector as this should protect capital values, and bring new projects to market. For investors, this is likely to mean an increased number of opportunities where it will be essential to focus on quality and product best aligned to consumer demand.

 

Learn more about real estate debt from our latest insight blog.

Latest Performance Report

as at 30 June 2020 (PDF 239KB)

Past Performance Reports

All reports are in PDF format.

For older past performance reports please contact the administrator login.

Freehold Debt Income Fund

The Freehold Debt Income Fund (FDIF) is an open-ended unlisted real estate debt fund that aims to provide regular income from a diversified, and conservative portfolio of real estate debt with low capital risk.

  1. As at 30 June 2020 and the fund inception was 1 October 2019. This is an annualised return, it is pre-tax, and past performance is no guarantee of future performance.
  2. Monthly distributions are subject to available net income.
  3. As at 30 June 2020. References to loans are references to direct or indirect lending via underlying funds.
  4. As at 30 June 2020. This is a reference to the percentage of underlying loans by value being secured by Australian real estate.

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