FDAIF Distribution Payment

FINEXIA Direct Accommodation Income Fund Pays Distribution to Investors

Calendar Icon   Thursday, 23rd December 2021

Finexia Financial Group Limited (FNX) is pleased to announce that its flagship wholesale managed fund, the “Finexia Direct Accommodation Income Fund” (FDAIF), which was launched in September 2021, has recently achieved a key milestone, making its first income distribution to unit holders.

The open-ended Fund was established to take advantage of an opportunity to invest in a high-quality portfolio of holiday and long-term accommodation businesses, known as ‘management letting rights’. The properties currently within the portfolio are primarily located in the hugely popular coastal Southeast Queensland region. The strategic blend of accommodations (holiday letting and long-term tenancies) has afforded the fund the ability to diversify the income sufficiently to ensure the overall performance is not entirely hinged on one segment of the accommodation market.

The “Finexia Direct Accommodation Income Fund” is exclusively aimed at wholesale and qualified sophisticated investors, seeking enhanced returns through regular (monthly) income distributions. The targeted return, as stated in the disclosure document, is 12.00%pa net after costs and is paid monthly in arrears. This forecast return has been based on analysis conducted on the independent income verification reports commissioned prior to the acquisition of each of the underlying businesses. Earlier this week, the fund paid to the FDIAF1 unit holders $0.00987 per unit, the equivalent of 12.02%pa as its maiden distribution. This entitlement is only available to unit holders in the Fund.

As the investment manager, Finexia will apply a disciplined and measured approach to growing the total assets under management within the Fund. Finexia’s Mr Patrick Bell declared, “We believe we’ve got the right mix of businesses in the portfolio to grow earnings and importantly maintain the investor distribution. The businesses each have a solid pipeline of bookings going into the traditional Christmas holiday period, and with border restrictions easing, we only see bookings growing strongly in the first half of 2022. Furthermore, we are conducting due diligence on several complementary target properties that fit within our earnings and risk parameters.”

The next distribution for the Finexia Direct Accommodation Income Fund is scheduled for 21 January 2022. Going forward all distributions will be paid monthly on or about the 21st of each month. The key terms of the Fund are contained within the Executive Summary attached to this release in the form of an Annexure. More information is also available at https://www.finexia.com.au/fdaif/


FDAIF Executive Summary

This announcement has been authorised for release by the Board of Directors.

For further information please contact:
Neil Sheather
Executive Chairman
Ph. 1300 886 103
[email protected]