Labassa Capital Credit Fund Update September 2026

In September 2026, the Fund delivered an investor return of 10.90% per annum (p.a.) net of fees on a 12-month rolling basis. Portfolio loan-to-value (LVR) remained conservative at 53.89%, while the Fund continued to actively manage its existing portfolio and made a full distribution of all interest received during the month.

Interest Rates, Economy and Property Markets: Economic conditions remained relatively resilient throughout September. The RBA cash rate remained at 4.60%, inflation moderated to approximately 3.50%, and annual GDP growth improved to 2.10%, supporting expectations of steady economic growth despite ongoing global uncertainty.

Australia's residential property market continued to show divergent performance across regions. National dwelling values declined 0.2% during the month and remain approximately 3.3% below their March 2026 peak. Sydney and Melbourne continued to soften, while Brisbane, Adelaide and Perth remained comparatively resilient.

Australia's structural housing undersupply remains a key long-term investment theme. Current forecasts indicate housing completions are likely to fall materially short of National Housing Accord targets, reflecting ongoing constraints including elevated construction costs, labour shortages, infrastructure delivery requirements and limited access to development capital.

These conditions continue to support opportunities within real estate private credit. As traditional lenders remain selective, non-bank lenders are playing an increasingly important role in funding project delivery. The Fund remains focused on opportunities supported by strong demand fundamentals, experienced sponsors, prudent capital structures and conservative leverage levels.

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