Property

In the breakdown of assets underlying Media Super’s investment options, 'Property' investments are detailed as 'Property Unlisted' and 'Property Listed'. Property investments may be domiciled in Australia or internationally. For details about the sector allocations of Media Super's investment options that include Property, refer to the individual Options.

What are property investments?

Land and buildings that can be bought, sold or leased are known as property. Investing in property through a super fund lets you and other members pool your money to enable you to part-own properties that would otherwise be too expensive for you to acquire on your own, for example, office buildings and shopping centres.

Property includes investments in real estate investment trusts (REITs), which may be listed on the stock exchange. Like shares, the value of property is influenced by many factors, including supply and demand and market conditions.

What are the risks of investing in property?

The most significant risk that Media Super’s Property portfolio is exposed to is market risk (i.e. the risk that property markets fall in value). Because of this, over short-term periods, there is a risk that the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative.

Diversification of investments in different property markets – Australian Listed Property, Australian Unlisted Property and Global Listed Property – reduces the overall market risk and, consequently, inflation risk. Interest rate risk is a significant risk to the Property portfolio due to a large portion of the sector’s return coming from an income stream. Individual investment risk is present, although it has been reduced by diversifying underlying investments.

What property investments is Media Super invested in?

Direct Property

Most of Media Super's pre-mixed options invest in Direct Property. Below are the top 10 holdings in our Direct Property portfolio as at 30 June 2016.

Top 10 Direct Property holdings
Rank Direct Property holding

Weighting of total Direct Property portfolio

(%)

1 Castle Towers Shopping Centre, Castle Hill, NSW 6.71
2 Eastland, Ringwood, VIC 5.39
3 Robina Town Centre, Robina, QLD 5.35
4 Canberra Centre, Canberra, ACT 4.86
5 Westpoint, Blacktown, NSW 2.87
6 Hyperdome, Loganholme, QLD 2.74
7 MLC Centre, Sydney, NSW 2.59
8 Watergarden Town Centre, Taylors Lakes, VIC 2.59
9 Two Harbour Place, Tampa, United States 2.42
10 770L Street, Sacramento, United States 2.36
Total top 10 as % of Direct Property portfolio 37.87

Approximate holdings as at 30 June 2016.

Listed Property

Media Super's Property single asset class option includes investments in Listed Property. Below are the top 10 holdings in our Listed Property portfolio as at 30 June 2016.

Top 10 Listed Property holdings
Rank Listed Property holding

Weighting of total Listed Property portfolio

(%)

1 Simon Property Group Inc 5.83
2 Public Storage 3.41
3 Welltower Inc 2.57
4 Prologis Inc 2.50
5 Unibail-Rodamco Se 2.55
6 Equity Residential 2.54
7 Avalonbay Communities Inc 2.60
8 Ventas Inc 2.65
9 Boston Properties Inc 2.25
10 Realty Income Corp 2.04
Total top 10 as % of Direct Property portfolio 28.94

Approximate holdings as at 30 June 2016.