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Unlisted property trusts swell ahead of Reserve Bank rate rises

April 6, 2022

Unlisted property trusts swell ahead of Reserve Bank rate rises

The unlisted property market has seen a flurry of activity as investors prepare for higher interest rates, according to Registry Direct CEO Steuart Roe.

The unlisted property market has seen a flurry of activity as investors prepare for higher interest rates, according to Registry Direct CEO Steuart Roe.

Mr Roe said his company has seen an influx of unlisted property trusts onto its platform in the past quarter as investors look to move out of equity into more conservative investment options.

Speaking to Reach Markets, he said the trend will likely continue once the Reserve Bank starts increasing rates. CommSec analysts expect to see a 0.15% increase in June 2022 as the first move.

Although higher interest rates can make funding for property investments more expensive, the inflationary pressures that typically precede higher rates tend to drive up property prices too – making them attractive to some investors during inflationary periods despite the funding costs.

Expansion bolsters Registry Direct growth

The increase in property trusts joining Registry Direct’s share registry software-as-a-service (SaaS) solution has helped underpin strong growth in the March quarter.

The company acquired 28 new fee-paying clients through the course of the three-month period, with listed entities comprising five of those.

Source: Registry Direct

It marks a second consecutive quarter of customer growth for the business, after the previous quarter saw the company grow its net fee-paying client base by 96 entities.

Registry Direct CEO Steuart Roe will be holding an investor briefing next Wednesday 13th April at 11am (AEST) where he will provide an overview of RD1’s disruptive SaaS technology and plans to expand the business. Click here to book in.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Registry Direct and will receive fees for its services

Sources


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