The Qualitas Real Estate Income Fund (ASX: QRI) released its QRI distribution announcement for December. The numbers tell a story worth understanding.
Figure 1: Exterior view of a commercial property linked to Qualitas [Qualitas]
On 31 December 2025, the Company declared a distribution of 0.9510 cents per unit. This QRI ASX distribution equates to an annualised return of 7.00% based on forecast net tangible assets of approximately $1.60 per unit. For investors tracking monthly income streams, the announcement carries weight.
Understanding QRI’s December Distribution Update
The December QRI distribution represents the fund’s regular monthly income payment to unitholders. The 7.00% annualised return is calculated by projecting the December payment across a twelve-month period, assuming distributions remain consistent.
Forecast net tangible assets per unit stood at approximately $1.60 as at 31 December 2025. The announcement was issued by QRI Manager Pty Ltd on behalf of The Trust Company (RE Services) Limited, which acts as the Responsible Entity of the Trust.
The QRI ASX distribution is supported by a portfolio of 58 loans, with a weighted loan maturity of 1.14 years. This relatively short duration allows capital to be recycled as loans are refinanced or repaid, enabling the fund to adjust to changing market conditions.
How QRI Generates Monthly Income
The QRI fund distribution is derived from two primary income sources. Approximately 75% of income is generated through cash interest payments, while the remaining 25% comes from interest accrued on capitalised interest facilities.
Figure 2: Interior view of Qualitas’ office space, reflecting the firm’s corporate operations and professional working environment. [Officevision.com]
For loans structured with capitalised interest, the fund retains cash reserves equal to the total forecast interest expected over the loan term. These reserves are progressively released in line with interest accrual, supporting consistent monthly income while limiting liquidity risk.
The portfolio generates gross income of 9.26% per annum. After deducting management fees of 1.54%, fund costs of 0.28%, and an income reserve of 0.53%, the resulting distribution yield stands at 6.90%. This illustrates how loan income flows through to unitholders after expenses.
Loan Portfolio Structure Supporting the Distribution
The QRI distribution announcement is underpinned by a diversified loan portfolio. Senior investment loans account for 48% of holdings and are secured against income-generating real estate assets. Senior land loans represent 21%, targeting sites expected to be activated within six to eighteen months.
Senior construction loans make up 17% of the portfolio, funding projects progressively as development milestones are reached. Mezzanine loans account for 10%, providing higher yields while ranking behind senior debt.
Senior loans dominate the portfolio at 90%, with 79% being first-ranking loans and 11% senior subordinated loans. The weighted loan-to-value ratio sits at 67%, providing a buffer against potential property valuation movements.
Portfolio Quality and Risk Positioning
The Manager confirms that as at 31 October 2025, the portfolio had no workouts, interest arrears, or impairments. Approximately 70% of loans are cash-paying, while 30% utilise capitalised interest structures.
Net returns have remained consistent across timeframes, delivering 0.63% over one month, 1.73% over three months, 3.58% over six months, and 7.64% over one year. Since its inception in November 2018, the fund has delivered a cumulative net return of 7.16% per annum, compared to an RBA cash rate of 2.10% over the same period.
Figure 3: Portfolio composition of the Qualitas Real Estate Income Fund, showing loan type mix, geographic exposure, property sector allocation, and key risk metrics. [Qualitas]
Interest exposure remains 100% floating, allowing the fund to benefit in higher interest rate environments. This structure aligns with the fund’s target return of the RBA cash rate plus 5.0% to 6.5% per annum.
Distribution Trends and Historical Performance
The December QRI distribution continues a long-standing pattern of regular monthly payments. For the 2026 financial year to date, the fund has delivered distributions in July, August, September, and October, maintaining consistency in income delivery.
In financial year 2025, total distributions amounted to 13.2122 cents per unit, compared with 14.1774 cents in FY24 and 12.2982 cents in FY23. Since inception, distribution levels have reflected changes in interest rates and portfolio composition while maintaining regular payments.
QRI’s Position in the Market
The Qualitas Real Estate Income Fund trades at $1.595 per unit, with a market capitalisation of approximately $1.00 billion, broadly aligned with the Trust’s net asset value. Over the past 52 weeks, units have traded between $1.470 and $1.700, with the current price sitting near the mid-point of this range.
Figure 4: Six-month unit price performance of the Qualitas Real Estate Income Fund (ASX: QRI), highlighting recent trading trends. [ASX]
The unit price reflects a small discount to the net asset value of approximately 0.4%. The Distribution Reinvestment Plan remains active, allowing investors to reinvest income into additional units.
FAQ
Q1. What is the QRI distribution announcement for December 2025?
Ans. The QRI distribution announcement for December 2025 confirms a distribution of 0.9510 cents per unit, equating to a 7.00% annualised distribution return.
Q2. When was the QRI ASX distribution announced?
Ans. The QRI ASX distribution was announced on 31 December 2025 by QRI Manager Pty Ltd on behalf of The Trust Company (RE Services) Limited.
Q3. What is the current trading price of QRI?
Ans. The Qualitas Real Estate Income Fund currently trades at $1.595 per unit, with a 52-week trading range of $1.470 to $1.700 per unit.
Q4. How is the QRI fund distribution calculated?
Ans. The QRI fund distribution is based on income generated from the fund’s portfolio of real estate loans secured by first and second mortgages, predominantly located in Australia.
