Citigroup Global Markets Australia Declares AUD 0.11953969 Partially Franked Distribution for QRE CitiFirst Instalment MINIs with 2 July 2026 Record Date

Distribution of AUD 0.11953969 Announced for QRE CitiFirst Instalment MINIs QREJOA and QREJOB

Citigroup Global Markets Australia Pty Limited, as issuer of the QRE CitiFirst Instalment MINIs, has officially declared a distribution of AUD 0.11953969 per unit for holders of the products listed under ASX codes QREJOA and QREJOB. This distribution is partially franked, meaning eligible investors may receive franking credits in addition to the cash component, depending on their individual tax situations.

The announcement specifies the precise distribution amount, reflecting the pass-through nature of distributions from the underlying BetaShares Australian Resources Sector ETF. CitiFirst Instalment MINIs are structured products that offer leveraged exposure to an underlying fund, and distributions from this fund are passed through to MINI holders according to the product’s trust structure. Investors are advised to consult qualified tax professionals to fully understand the tax implications of the partially franked distribution, as individual circumstances vary.

Record Date of 2 July 2026 Matches BetaShares Australian Resources Sector ETF Entitlement Date

The record date for the QRE CitiFirst Instalment MINIs is set to coincide exactly with the record date of the underlying QRE BetaShares Australian Resources Sector ETF, both falling on 2 July 2026. This alignment is consistent with the design of CitiFirst Instalment MINIs, which aim to closely replicate the economic outcomes of the underlying fund, including distribution timing.

Investors holding QREJOA or QREJOB on 2 July 2026 will be entitled to receive the declared distribution. Purchases made after the ex-distribution date of 1 July 2026 will not qualify for this distribution. The synchronization of these key dates is intentional to minimize timing discrepancies and maintain consistency for product holders.

Ex-Distribution Trading for QREJOA and QREJOB Began 1 July 2026

The QRE CitiFirst Instalment MINIs QREJOA and QREJOB started trading ex-distribution on 1 July 2026, mirroring the ex-distribution date of the underlying QRE BetaShares Australian Resources Sector ETF. Trading ex-distribution means the product price adjusts to exclude the value of the upcoming distribution for new purchasers.

Market participants trading these products from 1 July 2026 onward should note that acquisitions from this date do not include entitlement to the AUD 0.11953969 distribution. This adjustment is standard for listed structured products and ETFs. Public information did not indicate the immediate share price impact beyond confirming the ex-distribution trading commencement date.

Distribution Payment to MINI Holders Scheduled for 16 July 2026

The company update states that the Trustee will arrange for the distribution payment to QRE CitiFirst Instalment MINI holders to align, as reasonably practicable, with receipt of the distribution from the underlying fund. The target payment date is 16 July 2026, anticipated to coincide with the Trustee’s receipt of the distribution from the QRE BetaShares Australian Resources Sector ETF.

The phrase "as reasonably practicable" indicates some operational flexibility in payment timing, but 16 July 2026 remains the primary target. Holders registered as of the 2 July 2026 record date should expect payment around this date. No alternative payment dates or contingency plans were disclosed.

Mechanism of Distribution Pass-Through in CitiFirst Instalment MINIs

CitiFirst Instalment MINIs are structured products issued by Citigroup Global Markets Australia Pty Limited, a participant in the ASX Group and Cboe Australia. These products provide leveraged exposure to the QRE BetaShares Australian Resources Sector ETF via a trust structure where the Trustee holds the underlying securities on behalf of MINI holders. Consequently, distributions paid by the ETF are passed directly to MINI holders rather than retained by the issuer.

This pass-through ensures MINI holders receive economic benefits, including distributions, that closely reflect those of direct ETF investors, though structural differences exist due to leverage, financing costs, and instalment payment features. The partial franking status of the distribution corresponds to the franking credits attached to dividends from Australian resources companies held within the ETF.

QRE BetaShares Australian Resources Sector ETF as Underlying Asset for QREJOA and QREJOB

The underlying asset for QREJOA and QREJOB is the QRE BetaShares Australian Resources Sector ETF, which offers exposure to Australian companies in the resources sector, including mining, energy, and related industries. This sector is a major part of the Australian equities market. Distributions from the ETF represent dividends and income from its holdings.

The alignment of ex-distribution and record dates between the CitiFirst MINIs and the underlying ETF highlights the structural dependency of the MINIs on the ETF’s distribution cycle. Investors in QREJOA and QREJOB gain economic exposure to the resources sector through this layered structure. Changes to the ETF’s distribution policy, franking levels, or holdings may affect future distributions to MINI holders.

Partial Franking and Tax Considerations for Distribution Recipients

The declared AUD 0.11953969 distribution is partially franked, meaning some of the distribution includes franking credits representing tax already paid by underlying companies, while the remainder is unfranked. Eligible Australian resident investors may use these credits to offset personal income tax liabilities, potentially lowering the effective tax burden.

Tax treatment of distributions via structured products like CitiFirst Instalment MINIs can be complex, depending on factors such as residency, tax status, and product terms. The company did not disclose the breakdown of franked versus unfranked components within the distribution. Investors should consult product disclosure documents and tax professionals for detailed guidance.

Paul Kedwell Signs Off as Warrants and Structured Products Manager for Citigroup Global Markets Australia

The update was signed by Paul Kedwell, Warrants and Structured Products Manager at Citigroup Global Markets Australia Pty Limited. The correspondence was directed to the Australian Stock Exchange and submitted through the Derivatives Department, following standard reporting procedures for warrants and structured products under ASX rules.

Citigroup Global Markets Australia Pty Limited holds Australian Financial Services Licence (AFSL 240992) and ABN 64 003 114 832. The firm participates in both the ASX Group and Cboe Australia markets, actively engaging in Australian listed derivatives and structured products. This final warrant report is a routine compliance communication in the lifecycle of QREJOA and QREJOB as they progress through the current distribution cycle.

Upcoming Milestone: Distribution Payment on 16 July 2026 for QREJOA and QREJOB Holders

Following the ex-distribution date on 1 July 2026 and the record date on 2 July 2026, the next key event for QREJOA and QREJOB holders is the distribution payment targeted for 16 July 2026. Investors registered on the record date will be awaiting confirmation of receipt of the AUD 0.11953969 partially franked distribution around this date. The Trustee’s obligation to pay as reasonably practicable after receipt from the underlying fund underpins this timeline.

Beyond this payment, MINI holders will continue to monitor developments in the Australian resources sector, given the direct connection between the MINI values and the performance of the QRE BetaShares Australian Resources Sector ETF. Future distributions for QREJOA and QREJOB will depend on BetaShares’ distribution decisions for the QRE ETF. No further distribution guidance or product term changes were disclosed in this report.