Provincia Property Fund Ltd was formed in 2017 to invest in value-add industrial property. The fund now has 14 properties valued over $100 Million and 160 investors.
Provincia has successfully navigated the last few years, with the covid pandemic, high interest rates and inflation and is now looking forward to improved dividends and growth over the next few years.
“We haven’t missed a dividend payment since the fund’s inception in 2017 and haven’t had to sell any properties, even through the tough times. This demonstrates the resilience of the fund and that our investment strategy is working.” says Carl Burling, CEO.
It is pleasing that the Provincia board has approved the budget for the financial year that has increased the forecast dividend for FY26 from 3.04cps to 4.40 cps. This is a 45% increase on the 2025 financial year dividend. The reset of the dividend to this level for the 2026 financial year is the result of rent increases from various capital projects and rent reviews coming to fruition, as well as interest charges decreasing substantially, all delivering increased earnings.
“Provincia’s average total return since the funds inception has been 9.88%*, this return is a combination of capital gains and cash return to investors” says Jack Revill, COO.
When considering the budget for 2026, the business has still taken a conservative approach and has allowed for the accumulation of cash reserves and funds for capital expenditure. This will put the fund in a strong position in the future to ensure it can maintain a much-improved dividend payment.
With the focus squarely on improving returns for investors this means Provincia is still on hold for new property acquisitions. “We’re not chasing growth for growth’s sake,” says Carl Burling, CEO. However, in the future new acquisitions may be considered for this fund, if they are supported by investor demand and demonstrate overall improved returns.
In addition, to take advantage of the current buyers market Provincia has launched Provincia II. A new mirror fund that follows the same investment principles. This provides an entry point investment option for wholesale investors that wish to invest in industrial property. It’s a win-win – we can focus on improving dividends in the original fund and still provide wholesales investors with an opportunity to get into the new fund.
*Average Total Return 2019 to 2025 (includes unaudited figures for FY2025)
Prospective investors should be aware that Offers are not open to the public. It is open to Wholesale Investors as defined in Clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013 (The Act). Clause 3(3)(a) of Schedule 1 of The Act provides that an Eligible Investor (meeting the criteria in Clause 41 of Schedule 1 of The Act) also qualifies as a Wholesale Investor for the purposes of The Act and a qualifying Eligible Investor can, subject to the terms of an offer, invest less than $750,000 in respect of that Offer.
