Property Fund - COVID-19 Rental Impact Update

May 2020

In May, the Manager of Trust Management Property Fund advised that there would be rental income collection impact due to COVID19 related issues.  This is turn would impact the level of distributions.  The Property Management Team has been liaising with tenants over the last 3 months to agree rental relief claims and to work through the individual tenant situation caused by the various Alert Levels.  As a responsible landlord we have sought to approach the situation with empathy and understanding.  We have not experienced any tenant failures during the last three months.


As outline in our previous article, the Property Fund has low risk attributes such as being a diversified property portfolio plus being most exposed to Countdown supermarkets and the industrial property sector.  The portfolio does have specialty retail tenants and this sector was particularly impacted by Alert levels 3 and 4.


The analysis undertaken has reflected a reduced distribution level for the second quarter of c.23% compared to the first quarter.  The final level of distributions cannot be calculated until the end of the month.


It is highlighted that revenue for some tenants continues to be impacted under Alert Level 1 and relief for a further period from the landlord will be required.  At this stage the impact on future distributions is unclear but assuming that the country remains at Alert Level 1 for the balance of the year, the level of tenant relief will be lower than the impact experienced for the second quarter.  The Government is currently making legislative changes to the Property Law Act which is likely to see rental relief impacts across the commercial property sector.  At this stage there is a lack of detail on the potential impact of the legislative change on distributions for the balance of the calendar year.


Please contact Trust Management if have questions or would like to talk further about this issue.


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Grant Hope

Chief Executive Officer

09 550 4044





Shane Coward

General Manager

09 550 4045







Patrick O'Reilly

General Manager Property

09 550 4056




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