Record Realty (ASX: RRT) confirms long term debt funding position for
its portfolio
In response to current market conditions, Record Funds Management Limited
as Responsible Entity for Record Realty (RRT) confirms the current debt across
the assets of the RRT portfolio is funded for an average weighted term of four
and a half years. Further, only four of the forty assets representing 5.4% of the
total asset level debt, have debt that will expire on or before April 2010.
Further details of asset level debt in each jurisdiction and on a portfolio basis
are set out below:
Jurisdiction / Debt amount (A$) / Weighted average term / Weighted average
interest rate
Australia 574.5m 3.79 7.18%
Germany 494.2m* 4.14 4.90%
US 609.3m* 5.48 6.57%
Portfolio 1,678.0m 4.51 6.29%
*Assumes exchange rates of A$/Euro 0.596 and A$/US$0.86 respectively
The asset level debt is secured against the relevant property or property pool
depending on the jurisdiction. As at 30 June, 2007 the total asset value of the
property portfolio was A$2,301.0 million.
The RRT model is underpinned by government or premium corporates on long
term leases. The weighted average lease expiry on assets contained in the
total asset pool is approximately 8.5 years.
Record Realty’s corporate senior debt facility of $165 million has a current
expiry of July 2009. The facility at 30 November 2007 was drawn to $143.6m.
Foreign exchange hedging position
Record Realty has also locked in the following equity hedges on its overseas
investments:
•50% of initial US equity investment is hedged for 5 years at less than 72.0
cents, compared with the initial equity contribution of 80.3 cents;
•100% of the German equity investment is hedged for approximately 3 years
at approximately 56 Euro cents, compared with the initial equity contribution
at 59.5 Euro cents.
The debt for both the US and German portfolios have a natural hedge in place
as the debt for both of these portfolios is domestically domiciled.
Record Realty will announce its half year results to 31 December, 2007 on 21
February, 2008, at which time it will provide further details on its financial
position.