To assist you in better understanding our business, we have provided below some answers to the most commonly asked questions we receive.
What is an A-REIT?
A-REIT stands for Australian Real Estate Investment Trust. Historically, they have been known as Listed Property Trusts (LPTs). An A-REIT is a property trust which invests in a portfolio of property assets and is listed on the Australian Securities Exchange (ASX). Investors are able to buy securities in an A-REIT on the ASX, which provides them with a share of the ownership of the trust and entitlements to the returns of the trust. The major benefit of A-REITs is that they can provide access to assets that may be otherwise out of reach for individual investors, such as large-scale commercial properties. A-REITs are designed to generate wealth in two ways: they provide exposure to the value of the real estate assets that the trust owns and the accompanying capital growth, as well as rental income. A-REITs may appeal to investors looking to diversify their portfolio into property with potential to receive a regular and consistent income stream.
According to the ASX website, A-REITs that have stapled securities (like Vicinity Centres) provide investors with exposure to a funds management and/or a property development company, as well as a real estate portfolio. A share in a stapled securities fund usually consists of one trust unit and one share in a company. These securities are ‘stapled’ and cannot be traded separately. The trust holds the portfolio of assets, while the related company carries out the fund’s management functions and/or manages any development opportunities.
Being listed on the ASX, securities in A-REITs are traded each day and their price will rise and fall according to market conditions.
What are stapled securities?
Entities on the ASX that have stapled securities, are comprised of two or more entities, such that the units or shares of each entity are stapled together to create a single tradable security. Under stapling provisions, generally only stapled securities may be traded, not the separate units or shares that make up each stapled security.
Each Vicinity Centres stapled security is comprised of one Vicinity Centres Trust unit and one Vicinity Limited share.
What does listed mean?
A company is 'listed' when its securities are quoted (or listed) on the ASX. As the securities of Vicinity Centres are listed on the ASX and actively traded each day (under the trading code ‘VCX’, their value will rise and fall according to market conditions. This is different from other unit trusts (which are unlisted) where the investment manager calculates the unit price daily. Securities in listed entities can be bought or sold via an ASX participant broker.
What is the 'Record Date'?
The Record Date is the date on which the Group’s security register is closed off to identify the securityholders and to calculate any entitlement to the current distribution. All change of address notifications, request for payment of distributions direct to an Australian financial institution, TFN/ABN or exemption notification instructions election forms must be incorporated onto the security register by 5.00pm on the Record Date to apply for the current distribution and dividend.
Key Dates can be viewed on the Investors page