Rates

Rates will be a sticky problem and will be eating into the property management asset returns as borrowing rates keep edging up. That's happening all around the world. Most of our portfolio loans are between 3%-4%. They're still below 5% now but we estimate returns to decline from 20%+ to 13-15%+ with elevated rates of borrowing. Which is still good and cash flows still stable. On another note, quite a lot of asset managers looking into Japan for yield because of continued depressed low borrowing cost and cheap yield, but the returns on assets are still quite low compared to Australia imo.