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Property
Fund Snapshot
Launch Date 01/01/1984
Fund Manager Friends First
Risk Rating Risk Rating 5
Fund Type Asset Class Property Property
Diversification Diversification 2
Stocks & Holdings 39
Regions Covered Regions Covered 1
Fund Size €477M*
Latest Bid Price €13.4792 
Price Date 22/09/2017 

Fund Performance

Performance Line Graph

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Fund Summary
The Property Fund invests in a range of Irish properties across the retail, office and industrial sectors. The Fund only invests in direct Irish property, and does not invest in the UK or in indirect investments such as REITs. The Fund is designed for longer term investment with returns generated through capital growth and rental income. Property assets can be illiquid and can generate negative returns if capital prices fall. The benchmark for this fund is the average return achieved in the IPD Quarterly Irish Property Index.

Market Commentary
The Market:

Ireland is the best performing Eurozone economy for 3 consecutive years, with unemployment at a 9 year low (6.2%) and GDP growth forecasted at 3.5% for 2017. These excellent macro indicators support the Irish property market. Following an exceptionally strong trading year in 2016, buoyed by some large transactions, the level of investment is returning to a more normal level. Investment continues from a combination of domestic and overseas buyers and has included some new international players. Office take-up has gathered momentum in Q2, including some pre-leases of new developments under construction.

Prime yields remained relatively stable across the office (4.5%), retail (3.3%-3.5%) and industrial sectors (5.5%) (Lisney). While market-driven capital appreciation continues (mainly due to increasing rental levels), it is at a slower pace than in recent years. As such, total property returns going forward (both in this fund and in the wider market) are expected to be driven more by income than capital.

The Fund:

The Fund is in a very active phase, with a number of new lettings coming on stream, exciting acquisitions underway, and two large redevelopment projects. The performance for the first 6 months of the year is 2.3%, and 6.7% on a 12 month rolling basis. This has been dampened by the redevelopment projects, as capital values have fallen due to tenants vacating for works to commence on site. In addition, some capital expenditure accruals have been accounted for during the period. Friends First will progress significant asset management initiatives to deliver capital value improvements on existing assets over the coming 3 years. Investors should take a medium to long term view if investing in the Fund in order to experience the outcome of the larger redevelopment projects, Royal Hibernian Way and the Blackrock properties.

The Fund's income profile continues to be very attractive, with a strong initial income yield at the property portfolio level of 5.2% and a weighted average lease term (if all break options are exercised) of 8 years 5 months. The top 10 tenants account for 63.4% of the rental income.

During Q2 Friends First acquired an additional retail property in Dublin 2. Friends First continued to progress the redevelopment of the retail mall in Royal Hibernian Way, having secured planning in Q4 2016. Lease negotiations are underway with potential tenants for the new restaurant units. Work will commence on the first, larger restaurant unit later this year. The redevelopment plans for the Blackrock properties also progressed during Q2, with preliminary works on the shopping centre now underway. Works on the redevelopment of Enterprise House are expected to commence towards the end of the year. (30 June 2017)

Management Charge
0.75% pa of fund assets. Please refer to policy conditions for policy charges.

Sector Breakdown as at 30/06/2017

Unexpired Lease Duration as at 30/06/2017

Properties as at 30/06/2017

Properties
1,3 & 5 St Stephens Green, Dublin 2 Reiss, Oasis Fashions, Oasis Fashions t/a Coast (all Retail)
15,Duke Street, Dublin 2 Smash Lab Limited (Retail)
23 Shelbourne Rd Vacant Refurb. (Office)
24/26 Dublin Rd Balbriggan Bank of Ireland (Retail)
35 Henry Street, Dublin 1 Hutchinson 3G Ireland Ltd t/a "3" Mobile (Retail)
37 Patrick Street, Cork PICPS t/a Pandora (Retail)
38 Clarendon Street Dublin 2 Details pending
60/61,Grafton Street, Dublin 2 Disney Ireland (Retail)
7,Anne's Lane, Dublin 2 Private storage tenant (Retail/Industrial)
8, Lemon Street, Dublin 2 Paddy Power (Retail)
Blackrock Shopping Centre Musgraves, AIB, Next and others (Retail)
Block A,Ashtown Gate, Dublin 7 Multi Let (inc. Northern Area Health Board, HSE & Viridian)
Block D,Ashtown Gate, Dublin 7 Commission of Public Works (Office)
Carroll Village (Anchor Store),Dundalk Vacant (Retail)
Damastown Industrial Est Tech Group Europe Ltd (Industrial) Acquired Q2 2016
Duke House ,Duke Street, Dublin 2 Alias Tom & others (Office)
Elm Park, Merrion Road, Dublin 4 Willis with sub-lease to Wipro (Office)
Enterprise House/Trident House Zurich Life and others (Office)
Globe Retail Park, Naas Multi let Woodies (anchor) (Retail) Acquired Q2 2016
Kilkenny Retail Park, Kilkenny Multi let Woodies (anchor) (Retail) Acquired Q2 2016
Madrid Portfolio, Dublin 2 (9 Properties) (Retail/Office)
Pavilions SC (Anchor Store),Swords Supervalu (Musgraves Group) (Retail)
Pelham House, Sandyford Ardagh Packaging Holding - refurb project (Office)
Restaurant Elm Park Vacant - refurb, change of use
Royal Hibernian Way (Office),Dawson Street, Dublin 2 Davy Research and others (Office)
Royal Hibernian Way (Retail),Dawson Street, Dublin 2 Multi let, Fitzers(T/A Marco Pierre White) & othrs (Retail)
Trident House Commission of Euro. Communities and ors (Office)
Unit 100,North West Business Park, Ballycoolin Oasis Document Management (Industrial)
Unit 48,Sandyford Industrial Estate, Stillorgan Jaguar Daimler (Industrial)

This fund should be considered as being a medium-long term investment. Access to your investment in this fund may in periods of adverse investment conditions be restricted for up to six months. Asset Information source: Friends First, unless otherwise stated. Performance figures are as per 'price date'. * Fund size refers to assets under management in underlying fund.

The returns shown include the reinvestment of net income and are net of trading costs and management fees but before other insurance contract charges and as such do not represent the returns on insurance contracts linked to these funds. Details of all charges for a particular product are available on request.

The information in this document does not constitute investment advice. It does not take into account the investment objectives, financial position or needs of any particular investor. Before making an investment decision, you should consult suitably qualified and independent investment, taxation, and regulatory advisors to discuss your specific situation and investment objectives. The investment strategies and risk profiles outlined in this document may not be suitable for your specific investment needs.

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.



The information provided is intended for use by retail investment customers and is based on our understanding of current law and revenue practice.
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Fund Performance

Fund Performance To Date
Fund Description Fund 1 mth YTD 1YR 3YR p.a. 5YR p.a. 10YR p.a. Launch p.a

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: Funds may be affected by changes in currency exchange rates.
Warning: If you invest in this product you may lose some or all of the money you invest.

FUND WARNINGS:
  1. Performance Fees: The growth of the Insight Currency fund will be subject to a 20% monthly performance fee which only applies when the growth rate exceeds 7% p.a. The Market Neutral Equity fund will be subject to a performance fee of 10% of any growth achieved above cash returns (specifically 3-month EURIBID).
  2. The price protection on the Protected Equity+ Fund, Series 3 is provided by Deutsche Bank AG.
  3. Money invested in the Deposit fund is placed with one or more Banks. The payment of interest and security of capital is provided by the Bank(s). The Bank(s) and not Friends First are providing the security on the Deposit fund. Please refer to the Fund Factsheet.
  4. The property fund managers reserve the right to place a withdrawal limit or/and to defer encashment for up to six months or such time as is necessary to facilitate the sale of assets if required.
Fund Performance

Daily Fund Prices and Performance
Fund Name Bid Price Price Date 1Mth (%) YTD (%) 1Yr (%) 3Yrs (%) 5Yrs (%) 10Yrs (%) Since Launch (%)

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