Labassa Capital Credit Fund Update February 2025

On a 12 month rolling basis, the Fund achieved an investor return of 10.54% p.a. net of fees as of February 2025.  All portfolio assets are first mortgage facilities secured with registered mortgages in capital cities only, being Sydney and Brisbane. The portfolio average loan to value ratio (LVR) has reduced slightly from prior month to 65%. The Fund’s performance relative to the asset quality is considered to be a superior risk adjusted return.   

Following a strong distribution made in the January month, investors are receiving strong distribution payments again in February. The spike in distributions derived from two loans that matured within the month. Principal and interest capitalised for the full investment term have been repaid to the Fund. The Net Asset per Unit will reflect the distribution for the month. Investors who have opted for cash distributions will receive the payments to the nominated bank account. Investors on the reinvestment option will receive additional unit allocation equivalent to the distribution.  

The Fund has invested in two new loans, both first mortgage residual stock facilities secured by residential house land lots with separate titles in the northwest of Sydney. Residential land lot sales have picked in the past month and property market confidence has picked up at the inception of an interest rate reduction cycle. 

February pipeline value was $729 million, encompassing 34 projects with an average facility value of approximately $21.4 million each. Labassa investment team continue to stay on the front foot on the deal selection and due diligence process, underwriting compelling investments for our investors.

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