StayCo properties in comparison to all other properties on the Gold Coast. 

1. StayCo's Revenue per Available Room (RevPAR) has outperformed the Gold Coast market as a whole. Since 2021, StayCo's RevPAR has been 18% higher than the average for all other Gold Coast properties. This suggests that StayCo has been successful in maximising the revenue potential of its rooms.

2. The average daily room rates on the Gold Coast, including those of StayCo properties, have significantly increased, now standing at 33% higher than pre-pandemic levels. This might indicate a strong market recovery or an increase in demand for accommodation in the area.

3. There's been a notable rise in occupancy rates since before the pandemic. The average occupancy on the Gold Coast has increased by 17%, while StayCo has seen even greater growth, with a 28% higher occupancy rate. This shows that StayCo properties have been particularly successful in attracting guests.

4. In a year-over-year comparison for the same period, the average daily room rates for Gold Coast properties have risen by 7%. Meanwhile, StayCo's rates have seen even more substantial growth, increasing by 20%. This could be due to a variety of factors, including increased demand, improved service or facilities, or a strategic pricing policy.

Overall, these points suggest that StayCo has been outperforming the average market trends on the Gold Coast in key areas such as RevPAR, daily room rates, and occupancy rates. The factors driving this superior performance could be further explored to help sustain and enhance these positive results.

StayCo operates a total of eight Holiday and Resort Accommodation Complexes and two Long Stay Accommodation Complexes. The Holiday and Resort Accommodation Complexes are located in Broadbeach and Surfers Paradise on the Gold Coast, while the Long Stay Accommodation Complexes are situated elsewhere.

The Holiday and Resort Accommodation Complexes on the Gold Coast are as follows: Bel Air on Broadbeach, Ocean Pacific Resort, Belle Maison, South Pacific Resort, and Artique Resort. Additionally, there is Ivory Palms Resort located in Noosa, Queensland.

These properties are particularly appealing to families and travelers who desire additional amenities such as kitchens and laundry facilities, which sets them apart from traditional hotel-style rooms and properties.

The two Long Stay Accommodation Complexes operated by StayCo are The Avenues Apartment Complex and Fleet Drive Apartment Complex.

StayCo is a financially robust business that doesn't require significant capital expenditures. Its income primarily comes from selling accommodation and related services, asset management, and caretaker services for the properties it operates.

Notably, StayCo doesn't have significant ownership stakes in the properties it manages. This allows the company to oversee a portfolio of high-quality real estate assets without substantial upfront or ongoing capital commitments. However, StayCo aims to acquire freehold ownership in specific areas to strengthen its management interests in properties.

Typically, the property owners fund ongoing maintenance and refurbishment programs for the properties, rather than StayCo assuming those responsibilities.

The historical performance of the Fund has been robust since its inception in September 2021, providing an average return of 12% per annum, paid monthly. Its investment strategy is to provide a monthly base return averaging about 10% per year. Moreover, when assets are sold, investors will receive their original capital back, along with any capital growth.

StayCo aims to offer investors a stable income by focusing on the following strategies:

1. Providing secure long-term cash flows and the potential for capital growth: StayCo focuses on generating consistent and reliable cash flows for investors. Additionally, there is potential for capital growth, allowing investors to benefit from the increasing value of their investments over time.

2. A growing income stream supported by a strong legislative framework: StayCo ensures that its income stream continues to grow by operating within a robust legislative framework. This provides a stable and supportive environment for the company's operations, enhancing the long-term sustainability of the income stream.

3. Benefiting from geographical diversification through asset selection: StayCo strategically selects assets in various locations, which allows for geographical diversification. By investing in different areas, the company reduces the risk associated with relying on a single market or location, ultimately enhancing the stability of the income generated.

4. Providing an attractive income yield with growing underlying asset values: StayCo aims to offer investors an attractive income yield, providing them with a competitive return on their investment. Additionally, the underlying asset values of the properties managed by StayCo have the potential to grow over time, further increasing the value of the investment.

In summary, StayCo's strategies revolve around providing investors with a stable income by generating secure cash flows, capital growth potential, leveraging a strong legislative framework, benefiting from geographical diversification, and offering an attractive income yield with growing underlying asset values.

In terms of bank security, the following measures are put in place:

1. 1st Registered Mortgage over the Real Property related to the Management and Letting Rights: The bank holds a first registered mortgage on the real property associated with the management and letting rights. This provides the bank with a legal claim on the property in case of default, ensuring that it has priority over other creditors.

2. GSA (General Security Agreement) over the Borrowers: The bank also has a general security agreement in place, which grants it security interests over the borrowers' assets. This agreement allows the bank to access and seize these assets in the event of default, providing an additional layer of security for the bank.

3. Section 123 Notice to Body Corporate: A Section 123 Notice is sent to the body corporate, notifying them of the lender's interest in the management rights business. This notice ensures that the bank receives a 21-day notice period in case there is an intention to terminate the Management Rights Agreement. This allows the bank to take appropriate actions to protect its interests and ensure a smooth transition if necessary.

These measures are implemented to safeguard the bank's position and minimize potential risks associated with the management rights business.

Finexia Investment Managers & StayCo Operations Management

StayCo primarily generates its revenue through three main avenues: the sale of accommodation, related services, and asset management and caretaking of properties.

For the sale of accommodation, StayCo functions as a managing and letting agent, signing letting appointments with the owners of individual rooms or apartments within various properties. Its role involves facilitating the generation and distribution of room revenue, apportioning costs, and earning a letting fee in return.

In terms of related services, StayCo provides additional offerings like room cleaning, internet provision, in-room entertainment, food and beverage services, conferencing, tour bookings, among others. These services contribute to the overall revenue of the company.

Lastly, StayCo also earns revenue as the asset manager and caretaker of the properties. As part of this role, StayCo receives payments for services provided on behalf of the Body Corporate, which includes maintaining, cleaning, and repairing common areas of the property.

Most expenses in this business model are variable, meaning they fluctuate in proportion to the business's income. This is a cash flow-strong business with limited capital expenditure requirements. The Trust continues to aim for "capital-light" operating structures by signing management contracts over properties.

The Trust does not have significant ownership in any of the properties in its portfolio. This strategy allows StayCo to control a portfolio of high-quality real estate assets with relatively low upfront and ongoing capital commitments. It aims to strengthen its management interest in properties by strategically acquiring freehold ownership in specific areas within its properties, such as the lobby, restaurant, conference, or other areas.

However, it's essential to note that ongoing maintenance and refurbishment programs for the properties are typically funded by the property owners rather than StayCo.