Homeco Daily Needs Reit · ASX:HDN
Homeco Daily Needs Reit — Merger or Acquisition (November 2021)
22 slides from Homeco Daily Needs Reit's merger presentation, Nov 12, 2021
Slide 1: Presentation to Retail Broker Networks
Managed by HMC Funds Management Limited (ACN 105 078 635; AFSL 237257) as responsible entity of the HomeCo Daily Needs REIT (ARSN 645 086 620) ASX RELEASE 12 November 2021 PRESENTATION TO RETAIL BROKER NETWORKS HomeCo Daily Needs REIT (ASX: HDN) provides the attached presentation which will be deliv
Slide 2: Australia's Leading Daily Needs REIT
Daily Needs REIT Hills Super Centre (NSW) HomeCo Hawthorn East (VIC) PRESENTATION TO RETAIL BROKER NETWORKS….. PRESENTATION TO RETAIL BROKER NETWORKS 12 November 2021….…. AUSTRALIA’S LEADING DAILY NEEDS REIT
Slide 3: Overview of the Merged Group
Highlands Hub (NSW) Victoria Point (QLD) 1. Overview of the Merged Group Daily Needs REIT
Slide 4: Australia's Leading Daily Needs REIT
Australia’s Leading Daily Needs REIT Daily Needs REIT Merger provides significant scale and enhanced capability to unlock value from a highly strategic landbank Platform Overview Transaction Overview Key portfolio metrics ✓ Agreed merger between HomeCo Daily Needs REIT (HDN) & Aventus Group (AVN) Po
Slide 5: Enhanced Growth Opportunity
Enhanced Growth Opportunity Daily Needs REIT Clear strategy to enhance income security and growth to drive strong total returns MODEL PORTFOLIO STRONG GROWTH OUTLOOK Enhance income security & diversification Unlock development pipeline ✓ Accelerate tenant remixing towards HDN’s model portfolio ✓ Acc
Slide 6: Strategic investment footprint and last mile logistics network
Strategic investment footprint and last mile logistics network Daily Needs REIT Strategic last mile infrastructure network spanning 2.5 million square metres in Australia’s leading metropolitan markets and growth corridors Daily Needs 22% REIT 51 QLD: $0.9bn Properties Properties 12 Total portfolio
Slide 7: Australia's leading Daily Needs REIT
Australia’s leading Daily Needs REIT Daily Needs REIT High quality diversified income (>1,200 tenants) supports objective to deliver stable and growing distributions $331 98% 84% 3.6% 72% 20% 8% Avg. rent / m2 1 Cash collection2 National tenants3 Fixed WARR3,4 Fixed CPI Supermarket Top 10 tenants –
Slide 8: Portfolio Remixing Opportunities
Portfolio Remixing Opportunities Daily Needs REIT Over 80 opportunities identified to accelerate remixing towards more defensive daily needs and health uses Daily Needs Health & Services #43 incremental opportunities identified #40 incremental opportunities identified Supermarket1 (#7) Liquor (#7) C
Slide 9: Significant growth pipeline and investment opportunity
Significant growth pipeline and investment opportunity Daily Needs REIT Post merger HDN will target $60m+ of annual development capex2 and a 7%+ ROIC3 BROWNFIELD DEVELOPMENT MAJOR DEVELOPMENT 1 2 OPPORTUNITIES OPPORTUNITIES Large scale longer term development opportunities including town centre Valu
Slide 10: Targeting Strong Total Returns
Targeting Strong Total Returns Daily Needs REIT Well positioned to deliver attractive total returns underpinned by embedded rental growth and accretive investment opportunities Target annual total returns % p.a. + ~1-2% ~3% ~6% Accretive Accretive Strong Distribution Yield1 NOI Growth Developments A
Slide 11: Strategic Last Mile Logistics Network
Warners Bay Home (NSW) HomeCo Vincentia (NSW) 2. Strategic Last Mile Logistics Network Daily Needs REIT
Slide 12: The secular shift to omni-channel is a megatrend
The secular shift to omni-channel is a megatrend which has been Daily Needs REIT accelerated by Covid-19 Asia Pacific United States Europe 10
Slide 13: Sydney last mile logistics network
Sydney last mile logistics network Daily Needs REIT The combined group controls a strategic last mile logistics network across greater Sydney Newnes Woy Woy $1.4bn South Pacific Ocean Book value1 McGraths Hill Blue Mountains (APS1) National Park 34% Penrith Castle Hill Belrose total portfolio1,2 Mar
Slide 14: Melbourne & Brisbane last mile logistics network
Melbourne & Brisbane last mile logistics network Daily Needs REIT $0.9bn 23% ~740,000 33% $0.7bn 17% ~395,000 34% of total of total Total value1 Sqm of land1 Site coverage1 Total value1 Sqm of land1 Site coverage1 portfolio1,2 portfolio1,2 Greater Melbourne Greater Brisbane Murrindindi Coral Sea Sun
Slide 15: Appendix
Caringbah Super Centre (NSW) HomeCo Rosenthal (VIC) 3. Appendix Daily Needs REIT
Slide 16: Creates Australia's leading Daily Needs REIT
Creates Australia’s leading Daily Needs REIT Daily Needs REIT Eligible for S&P/ASX200 with pathway towards S&P/ASX100 index inclusion S&P/ASX Index Free Float Market Capitalisation Thresholds ($bn) ASX100 threshold 4.8 ~$1.5bn increase in free float market capitalisation, becoming the #125 largest s
Slide 17: Portfolio Remixing Opportunities
Portfolio Remixing Opportunities Daily Needs REIT Over 80 opportunities identified to accelerate remixing towards more defensive daily needs and health uses HDN has undertaken preliminary analysis which has identified a substantial number of complementary Daily Needs and Health & Services remixing o
Slide 18: Strong Embedded Valuation Support
Strong Embedded Valuation Support Daily Needs REIT Recent on-market transactions highlight potential for further near-term cap rate tightening June 2021 November 2021 Neighbourhood – Capitalisation rates HDN average: 5.5% Market evidence (median): 5.0% 5.4% 5.3% 5.0% 5.0% 4.8% 4.8% 1 2 3 4 5 6 Cherr
Slide 19: Strong Embedded Valuation Support
Strong Embedded Valuation Support Daily Needs REIT Recent on-market transactions highlight potential for further near-term cap rate tightening May 2021 November 2021 Large Format Retail – Capitalisation rates Standalone Bunnings transactions HDN/AVN average: 6.0%1 Market evidence (median): 5.6% 6.0%
Slide 20: Indicative Implementation Timetable
Indicative Implementation Timetable Daily Needs REIT Key milestones Date1 Announcement date 18 October 2021 Submit draft scheme booklet to ASIC End November 2021 First court hearing Mid-December 2021 Dispatch of Scheme Booklet to Aventus securityholders Mid-December 2021 Scheme Meetings Late January
Slide 21: Contacts
Contacts Daily Needs REIT Investors and analysts Media Misha Mohl Will McMicking John Frey Group Head of Strategy & IR Group Chief Financial Officer Corporate communications Home Consortium Home Consortium +61 422 371 575 +61 451 634 991 +61 411 361 361 misha.mohl@home-co.com.au william.mcmicking@ho
Slide 22: Disclaimer
Disclaimer Daily Needs REIT This presentation (Presentation) has been prepared by HMC Funds Management Limited (ACN 105 078 635, AFSL 237 257) (Responsible Entity) as responsible entity of HomeCo Daily Needs REIT (ARSN 645 086 620). Summary information This Presentation does not constitute financial
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