GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis Digital Infrastructure Income Fund — Investor Presentation (March 2024)
47 slides from GCP Asset Backed Income Fund's investor presentation, March 2024
Slide 1: VT Gravis Digital Infrastructure Income Fund
GRAVIS DIGITAL ~ TINFRA VT GRAVIS DIGITAL ~ INFRASTRUCTURE * INCOME FUND MARCH 2024 Gravis $2?
Slide 2: Contents
CONTENTS 3 The Opportunity 12 Digital Infrastructure 19 Introduction to the Fund 39 Appendix GRAVIS DIGITAL INFRA
Slide 3: The Opportunity
THE OPPORTUNITY Gravis
Slide 4: The Fourth Industrial Revolution
THE FOURTH INDUSTRIAL REVOLUTION Now ‘1st Industrial Revolution 2r¢ Industrial Revolution Mechanisation Mass Production Steam engine powered Electricity and oil-power driving mechanisation mass production revolution GRAVIS DIGITAL INFRA 3rd Industrial Revolution Automated Production Computer and int
Slide 5: Revolutionising Our Lives
REVOLUTIONISING OUR LIVES 4th Industrial a Revolution — Work Play Live ron ble 6 th ELAN J A> SharePoint od TikTok (Mocado .) A shopify amazon | ye Se Data Centres Digital Networks Telecoms Towers 5G Networks, Urban Logistics E-commerce Facilities Fulfilment Centres GRAVIS DIGITAL INFRA
Slide 6: The Perpetual Data Cycle
THE PERPETUAL DATA CYCLE More data drives the creation of more apps. New technologies drive incremental data creation: More apps create more data. + Generative Al. More apps and more data requires more bandwidth. * Semi-autonomous/autonomous vehicles’. More bandwidth requires more digital infrastruc
Slide 7: Data Growth
DATA GROWTH Accelerating growth in data volumes. 200 180 160 140 120 100 80 60 Volume of data (zettabytes) 40 20 2010 201 2012 Volume of data/information created, captured, copied and consumed worldwide! 2013 2014 2015 2016 207 2018 2019 2020 2021 2022* 2023" 2024" 2025" Social Media Al ‘Source: Sta
Slide 8: E-Commerce Growth
E-COMMERCE GROWTH Increasing e-commerce penetration. E-Commerce Penetration Online sales as % of total retail sales! 30% 25% 20% 15% 10% . ll lll i tl | |_| IT ES FR US DE NL UK =2012 §2019 ™2021 ™2022 * Source: Center for retail research. The figures on this graph relate to retail sales only, exclu
Slide 9: Uber Spotify Pinterest
Uber Spotify Pinterest Instagram TikTok ChatGPT
Slide 10: Digital Infrastructure Assets
DIGITAL INFRASTRUCTURE ASSETS Digital infrastructure companies enable the digital world and are distinct from technology companies. DIGITAL SUB-SECTORS Po . ston om ne oe _— Communication Data centres Fibre networks & Logistics warehouses Software Hardware Payment towers energy storage systems - Ame
Slide 11: -100 -300 -500
700 130 500 120 300 110 100 100 -100 90 80 -300 70 -500
Slide 12: Digital Infrastructure
DIGITAL INFRASTRUCTURE Gravis
Slide 13: Digital Infrastructure Business Models
DIGITAL INFRASTRUCTURE BUSINESS MODELS Moving from an analogue world to a digital world creates rental income opportunities. Physical asset ® i Leasing space for communications equipment Leasing space for servers Income generation Average unexpired Average unexpired lease length lease length 7.7 yea
Slide 14: Communications Towers
COMMUNICATIONS TOWERS Communication towers support antennas for telecommunications, wireless internet and broadcasting. Key Facts *¢ Mobile network data traffic grew 36% between Q1 2022 and Q1 2023'. e 302 tower companies own 3.66m of the worlds 5.08m towers globally2. e¢ Mobile network operators mo
Slide 15: Data Centres
DATA CENTRES Physical facilities that house computer systems needed to store, process, and disseminate data and applications. Key Facts ¢ London colocation market supply stands at 839 MW IT load, the largest market in Europe with nearly 38 percent of the market share! 5000 ¢ — In 2021, nearly 110 MW
Slide 16: Fibre Optics and Smart Grid Networks
FIBRE OPTICS AND SMART GRID NETWORKS Fibre Optics + Fibre-optic cable can be made up of a few, to hundreds of optical fibres within a plastic casing. * Terrestrial and subsea cable networks use fibre as it is the only technology that can handle high capacity, transferring data at the speed of light.
Slide 17: Logistics Facilities
LOGISTICS FACILITIES E-commerce companies are increasingly using automated big box warehouses to store and dispatch goods. The trend towards ever shorter delivery times is driving increasing demand for urban logistics facilities. Key Facts e The growth of the logistics sector has been driven by the
Slide 18: Listed Digital Infrastructure Champions
LISTED DIGITAL INFRASTRUCTURE CHAMPIONS Developed markets listed companies championing the digital infrastructure universe. €, PROLOGIS’ Iman Market Cap — £26.1bn Market Cap — £96.4bn IPO Date — June 1995 IPO Date — November 1997 A CROWN AMERICAN TOWER: Market Cap — £71.6bn IPO Date — July 1998 Mark
Slide 19: Introduction to the Fund
INTRODUCTION TO THE FUND Gravis
Slide 20: Fund Overview & Objectives
FUND OVERVIEW & OBJECTIVES Objectives To achieve capital growth through market cycles!. Aiming to deliver c. 3% dividend yield2. Inflation-linked characteristics. Key Information The VT Gravis Digital Infrastructure Income Fund is a UK UCITS V OEIC. Diversified portfolio of transferable securities l
Slide 21: Proven Investment Process
PROVEN INVESTMENT PROCESS ACTIVE FUND CONSTRUCTION MANAGEMENT Ensure diversification & COST across the global digital AWARENESS infrastructure sector through security selection Seeks opportunities to minimise the entry price RISK MANAGEMENT Foous on higher quality companies with relatively low to mo
Slide 22: Security Selection Is Key
SECURITY SELECTION IS KEY REITs can be worth much more than the external valuer’s assessment. Property valuation Valuers assign is an art. no portfolio premium?. The net asset value (NAV) is NAVs just sum merely an estimate’. individual property values. Management matters. Valuers ignore balance she
Slide 23: Liquidity and Quality
LIQUIDITY AND QUALITY ‘Source: Gravis Advisory Ltd GRAVIS DIGITAL INFRA Global Digital Infrastructure ¢.125 Listed Companies iquid & Tradable 75+ Listed Companies Focused Digital Infrastructure 70+ Listed Companies >£650bn combined market cap >£2bn average daily volume VT Gravis Digital Infrastructu
Slide 24: Building a Diversified Portfolio
BUILDING A DIVERSIFIED PORTFOLIO The Fund invests in multiple REITs, which own or invest in a diversified pool of properties. VT GRAVIS DIGITAL INFRASTRUCTURE INCOME FUND j f \ Portfolio of REITs & Investment Companies Crown Castle Cogent Comms Keppel DC REIT Goodman Celinex Telecom Equinix Inc 40,0
Slide 25: Contractual Rent Growth
CONTRACTUAL RENT GROWTH c.70% of the portfolio has either fixed uplifts or inflation-linked escalators. Lease lengths and rent profiles a wppP cas % = CPI/RPI-linked Income — ™Open Market Income CATENA Ede 4% "Fixed Escalators = Hybrid cellnex® °O 2 4 6 8 10 Weighted Average Unexpired Lease Term (WA
Slide 26: Inflation Proofing: Long Leases and Rent Escalators
INFLATION PROOFING: LONG LEASES AND RENT ESCALATORS ——— = CATENA wor >] —— WDP CROWN 96 Cae SS Ss « SEGRO 41% 53% ~ °O 2 4 6 8 1 For the tower business only Weighted Average Unexpired Lease Term (WAULT) 2Estimated based on company materials WAULT and rent profile data taken from Company Data and/or
Slide 27: All Sub-Sectors Performing
ALL SUB-SECTORS PERFORMING All sub-sectors have delivered strong returns except for communication towers which was down c.2% in 2023. Data centres has delivered the highest returns in 2023 driven primarily by adoption of Al which strengthened demand outlook. Contribution analysis by underlying secto
Slide 28: Fixed Rate Debt
FIXED RATE DEBT Attractive debt financing. High rated, low coupon, long tenor and mostly fixed. Credit Rating Non-rated, 17.0% Sub-Investment Grade, 10.4% Investment Grade, 77.7% Av. Cost of Av. Debt % Fixed or Investment Debt Tenor capped Grade 2.9% 5.9 years 86.6% 71.1% ‘Source: Bloomberg LP, Grav
Slide 29: Reversionary Rental Growth
REVERSIONARY RENTAL GROWTH Rent reversion can be viewed as embedded growth. Reversion helps to offset any outwards shift in valuation yields and raising financing costs. Market rents above current contractual rents. 60% 50% 30% - - [ 0% ©} PROLOGIS’ SEGRO in dream tri at REIT AA TRITAX BIG BOX Rent
Slide 30: Responding to Climate Change: Pathway to Net Zero
RESPONDING TO CLIMATE CHANGE: PATHWAY TO NET ZERO The Fund is less carbon intensive than most global indices. More portfolio holdings are publishing Net Zero roadmaps. Data centres account for significant carbon emissions, but Al can help data centres become greener and more sustainable. Carbon Inte
Slide 31: Responding to Climate Change: Setting Ambitious Targets
RESPONDING TO CLIMATE CHANGE: SETTING AMBITIOUS TARGETS The energy efficiency of assets is increasingly important. Obsolescence risk is reduced through investing in companies owning and developing high quality assets. ‘ Green Desi Asset Class Carbon Reduction Goals Renewable Energy Goals Energy Effi
Slide 32: Optimistic Management Outlook
OPTIMISTIC MANAGEMENT OUTLOOK Data Centres as Gall el Logistics ® ft Cell Towers Sl Networks a Source: Gravis Advisory Ltd research. “NEXTDC’s first half performance shows that the Company remains on track to achieve its key revenue and underlying EBITDA targets. We expect to deliver another strong
Slide 33: Dependable Dividend Generators
DEPENDABLE DIVIDEND GENERATORS Driven by strong underlying investments, the Fund has paid 12 distributions since inception. Years of Consecutive Company Sector Country of Listing Dividend per Share Dividend Yield Dividend Growth Growth & DIGITAL REALTY pat o— 7 3.2% 1.9% (3. pat | ote | nl 4.5% >10%
Slide 34: Attractive Development Pipelines
ATTRACTIVE DEVELOPMENT PIPELINES Development pipelines deliver superior returns to investors in specialists REITs!. Fund Underlying Asset Exposure? Developments, 19.1% Income Producing _ Assets, 80.9% ___ MC Digital Realty Data Centre, Tokyo - MCC Mitaka. High energy efficiency of PUE: 1.22 Developm
Slide 35: Private Equity Acquiring Public Equity
PRIVATE EQUITY ACQUIRING PUBLIC EQUITY The Gravis Digital Infrastructure Income Fund has benefited from private equity takeover activity. Portfolio Holding Bidder Announcement Date Takeover Premium! June 2021 +21% November 2021 +25% Brookfield 4 March 2022 +59% MORRISON SCO ° viciracétibge ifm May 2
Slide 36: Portfolio Exposure and Top Holdings
PORTFOLIO EXPOSURE AND TOP 10 HOLDINGS High conviction portfolio focused on infrastructure types with favourable fundamentals. International diversification benefits. Company Equinix Inc Goodman Group Prologis Inc NEXTDC Ltd Digital Realty Trust Inc American Tower Corp SEGRO PLC SBA Communications C
Slide 37: Reliable Distributions
RELIABLE DISTRIBUTIONS Quarterly since inception** to 31 December 2023. 2027" 1.2196p 2022 2.5606p 2023 2.7174p - 0.6 1.0 18 Past performance is not indicative of future performance, the value of your investment may go down as well as up. “The Fund launched on 31 May 2021. Data as at 31 December 202
Slide 38: Fund performance versus MSCI indices
MSCI World Infrastructure MSCI World IMI Core Real Estate 130 VT Gravis Digital Infrastructure Income Fund C Acc 120 110 100 90 80 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22 Nov 22 Feb 23 May 23 Aug 23 Nov 23 Feb 24
Slide 39: Appendix
APPENDIX Gravis
Slide 40: Fund Investment Team
FUND INVESTMENT TEAM Matthew Norris, CFA — Director of Real Estate Securities & Fund Adviser Matthew is the lead adviser to the VT Gravis UK Listed Property Fund and the VT Gravis Digital Infrastructure Income Fund. He has more than two decades investment management experience and has a specialist f
Slide 41: Key Terms
KEY TERMS Fund Size Yield (C Inc GBP) Share Classes Minimum Investment Annual Management Charges Fund operating charges* Synthetic OCF** Launch Date Launch Price Valuation and trading Investment Association Sector Holdings Number of holdings Distributions Classification Currencies £ISINs & SEDOLs £2
Slide 42: Gravis Responsible Investment
GRAVIS RESPONSIBLE INVESTMENT Gravis’ Commitments Gravis Responsibe Investment Policy GRAVIS DIGITAL INFRA Committed to running operations on a carbon-neutral basis by 2023 Signatory to the Principles for Responsible Investment since January 2019 Participant in the UN Global Compact Network Abide by
Slide 43: Platforms and Wrappers
PLATFORMS AND WRAPPERS Available on the following platforms Aegon Allfunds Aviva Barclays Canada Life Citi Bank Close Brothers Embark Ifidelity FNZ Hargreaves Lansdown Hubwise Interactive Investor J Brearley Novia GRAVIS DIGITAL INFRA Nucleus Old Mutual/Quilter Pershing Raymond James Seven IM Standa
Slide 44: Contact Information
CONTACT INFORMATION Investment Manager and Dealing == Valu-Trac Investment Management Limited = 01343 880217 digitalinfrastructure@valu-trac.com Valu-Trac Dealing 01343 880344 Investment Adviser Matthew Norris Fund Adviser, Director of Real Estate Securities 020 3405 8553 matthew.norris@graviscapita
Slide 45: Investment and Distribution
INVESTMENT AND DISTRIBUTION Investment Manager Valu-Trac Investment Management Ltd. i. Valu-Trac Investment Management Limited was established as an authorised investment manager in 1989. ii. Valu-Trac Investment Management Limited launched Valu-Trac Administration Services in 2010, to provide Autho
Slide 46: Important Notice
IMPORTANT NOTICE Warning The information in this Report is presented by Valu-Trac using all reasonable skill, care and diligence and has been obtained from or is based on third party sources believed to be reliable but is not guaranteed as to its accuracy, completeness or timeliness, nor is it a com
Slide 47: Gravis
Gravis INVESTMENT IDEAS FOR THE LONG RUN
VT Gravis Digital Infrastructure Income Fund — Investor Presentation (March 2024) on 6ix