A quick scene‑setter: Winter may be cooling Melbourne mornings, but MRE’s latest numbers are heating up the private‑credit space. With the loan book now past 150 senior deals, both Trusts fully deployed and my own holding finally tipping into positive total‑return territory, this update packs plenty for income hunters to chew on. Let’s break it down.
Quick Snapshot
| Metric | Latest | Note |
|---|---|---|
| Unit price (1 Aug 2025 close) | A$1.975 | 1.6 % off July peak of $2.02 |
| July distribution | 0.87 ¢/unit | Ex‑date 31 Jul; payable 8 Aug |
| 1‑month NAV return | 2.06 % | June figure |
| 3‑month NAV return | 6.47 % | Apr–Jun quarter |
| Since IPO (Oct ’24) | 11.86 % NAV / 4.09 % cash | Inside 10–12 % p.a. target |
| Portfolio breadth | 158 senior loans + 14 equity assets | 26 new positions this qtr |
| Capital deployed | 100 % of both Trusts | Fully invested as at 30 Jun 25 |
| Average daily volume | ≈224 k units | 90‑day average |
My Position (transparency time!)
I currently hold 3,092 units, picked up at an average cost base of A$1.978. With Friday’s close at A$1.975, the position is worth A$6,106.70 – a ‑0.24 % capital slip that’s been more than offset by A$233.98 in dividends. All‑in, my total return since first purchase sits at +3.58 %.
At July’s 0.87 ¢ payout, my forward cash yield is ≈5.3 % on cost (before any franking the Active Trust should start spitting out next year).
June‑Quarter Highlights
- Passive Trust clocked a 2.87 % net return for the quarter in spite of the 25 bps RBA cut, continuing to beat its 3‑month BBSW+500 bps hurdle.
- Loan book keeps its conservative stance – weighted avg. credit rating BBB‑ and zero realised losses or arrears >90 days.
- Concentration risk easing further: top‑10 exposures account for ~21 % of AUM, down from 24 % six months ago.
- Active Trust milestone ahead: first project (Gold Coast industrial strata) reaches practical completion this month with settlements due August 2025, priming the equity sleeve for its first realised gains (and potential franking).
- You can find the sources by clicking the links below
Sector & Geographic Mix
Residential build‑to‑sell still dominates (≈73 % of AUM) but industrial’s share has inched up to 18 % while office and retail remain negligible. NSW and VIC make up the lion’s share of security, with QLD’s slice growing thanks to the Active Trust pipeline.
Why I’m (Still) Comfortable
- Scale & diversification – 158 senior-secured positions spread across metros means any single borrower wobble is a pin‑prick, not a torpedo.
- Floating‑rate cushion – 99 % of the debt book floats, so coupons reset quickly if rates drift higher again.
- Equity kicker – the 14‑asset equity sleeve is small (≈A$300 m) but gives upside that can outrun yield compression.
- Liquidity – the fund trades like a mid‑cap REIT (>200 k units a day), rare for private‑credit LITs.
Risks On The Radar
- Construction timelines – 10 of the Active Trust deals are still pre‑settlement; any delays could defer equity realisations.
- Fee step‑up – base fee rises from 1.29 %→1.54 % of NAV in October; I’ll be watching how much alpha post‑fee persists.
- Macro drift – another sharp leg down in housing sentiment could slow presales and dent equity valuations.
Bottom Line
Nine months in, MRE is ticking the two boxes I care about: reliable monthly cash that’s edging higher, and NAV growth that keeps pace with the 10–12 % mandate. With my personal yield now north of 5 %, I’m happy to keep compounding – and will likely top‑up again on any dip below the $1.95 mark.
Disclosure: Long MRE. Not financial advice – just sharing my process for fellow Australian income hunters.
Like this update?
Subscribe to My Income Factory so you never miss a distribution date or portfolio deep‑dive.