Metrics Real Estate Multi-Strategy Fund (ASX: MRE) continues to deliver strong returns and monthly income. See what’s working, what’s changing, and why it could be a core holding for dividend investors.
🧭 Fund Snapshot: MRE at a Glance
The Metrics Real Estate Multi-Strategy Fund (ASX: MRE) is gaining serious attention for its strong credit underwriting and consistent monthly income. Here’s the quick summary:
- 1-Year Net Return: 11.02%
- Quarterly Net Return: 2.5%
- Target Return: 10–12% p.a. (net)
- Distributions Since Inception: 2.53%
- No loan losses to date
- 98%+ senior secured and floating rate loans
- $4.37B in Assets Under Management
Whether you’re chasing income in retirement or diversifying from equities, MRE is proving itself as a stable performer.
🛡️ Risk Metrics: What You Should Know
Loan-to-Value Ratio (LTV) has gradually climbed to 68%, which remains within a moderate risk band. It’s important to watch this trend, but there are no red flags yet.
🔥 Outperforming the Benchmark
Since inception, MRE has delivered consistent outperformance against its benchmark of 3M BBSW + 500bps, with a spread holding above 6.5% across multiple periods.
🧠 Key Strengths
- ✅ Senior Secured Focus – Over 98% of the loan book
- ✅ Floating Rate Protection – 99% exposure shields against rate fluctuations
- ✅ Diversified Portfolio – Now 123 loans across residential and industrial sectors
- ✅ No Defaults or Loan Losses
- ✅ Strong Pipeline – 7 new loans added in the past quarter
⚠️ What to Watch
- Victorian Market Risk: Regulatory changes continue to challenge developers in the state. VIC makes up 21% of portfolio exposure.
- LTV Trend: The increase from 65% to 68% LTV could signal slightly more aggressive lending.
- Construction Sector: Still volatile due to insolvencies, though stabilising.
🧾 Bottom Line
MRE is a rare combination: monthly income, capital stability, and returns above 10% p.a. For income-focused investors, especially in a post-rate-cut environment, this is a fund worth keeping in the core portfolio.
✅ Recommendation: Hold and Accumulate
As new loans are deployed and economic conditions favour real estate development, we expect yield growth and stable monthly distributions to follow.
I hold a position in MRE (ASX: MRE) at the time of writing. This article is for informational and educational purposes only and is not intended as financial advice. Please do your own research and consider speaking to a licensed financial adviser before making any investment decisions. Investment outcomes are not guaranteed and past performance is not indicative of future returns.