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 primarily secured by real estate.


Freehold Fund
8.48% P.A.(1)
since inception
Freehold Fund
Monthly
Distributions (2)
Freehold Fund
Diversified Across
34 Projects (3)
Freehold Fund
95%
Secured (4)

How does it work?

From an investor’s perspective, 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 an asset, or for the development or redevelopment of an asset and in return, receives interest on the loan. The interest on the loan is either paid to the lender monthly, quarterly, or capitalised and paid the the end of the loan term.

The return on investment or interest paid will depend on the underlying risk. In particular, at what level the loan is secured against the underlying asset. Generally speaking, the higher the level of security, the lower the interest paid.

The fund collects the interest paid from borrowers, and distributes net income as distributions to investors each month.

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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%    
Fund Performance (annual) 8.58% 8.32% 8.61% 8.70% 7.69% 8.82% 7.99%    
Distribution - 0.56% 0.67% 0.68% 0.69% 0.68% 0.47%    
Distribution (annualised) - 6.75% 8.01% 8.11% 8.23% 8.15% 5.62%    

The big issues in real estate debt right now

The markets will remain volatile for some time given the unprecedented impact from the Coronavirus on global economies. The landscape is rapidly evolving with balance sheets cross the world being tested. It will be the survival of the fittest, or strongest balance sheet.

We expect this period of uncertainty and volatility to impact liquidity, with debt providers being more selective and conservative in an environment where real estate valuations prove difficult. This is likely to lead to lower transaction activity, with vendors and buyers alike delaying decisions until the depth and duration of this period is clearer.

Learn more about real estate debt from our latest insight blogs

Latest Performance Report

as at 31 April 2020 (PDF 239KB)

Past Performance Reports

All reports are in PDF format.

For older past performance reports please contact the administratir login.

March 2020 February 2020 January 2020 December 2019 November 2019 October 2019

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.

More Information

  1. As at 29 February 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 29 February 2020. References to loans are references to direct or indirect lending via underlying funds.
  4. As at 29 February 2020. This is a reference to the percentage of underlying loans by value being secured by Australian real estate.

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