360 Capital Reit · ASX:TOT
360 Capital Reit — H1 FY2023 Earnings Presentation
28 slides from 360 Capital Reit's earnings presentation, Feb 17, 2023
Slide 1: HY23 Results Presentation
HY23 Results Presentation 17 February 2023 P.1
Slide 2: Table of Contents
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Table of Contents CREDIT 1 Snapshot and Key Highlights 3 2 Portfolio Overview 7 3 Financials 16 4 TOT’s Tax Benefits 19 5 Capital Management 21 6 ESG Initiatives 23 7 Key Focus and Guidance 25 P.2
Slide 3: 1. Snapshot and key highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 1. Snapshot and key highlights P.3
Slide 4: Value Proposition
Value Proposition $257.2m Modern portfolio - with an average age of 2.5 years4, minimal capex Modern Portfolio 26.1% Aligned manager - with 16-year real estate track record Manager Co-Investment Secure, growing income – defensive with 85.2% of income derived 7.3 year WALE from government and publicl
Slide 5: HY23 Financial Highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY HY23 Financial Highlights CREDIT $1.15 3.1cps 7.4% NTA HY23 FY23 DPU Yield 1 per security Operating earnings $257.2m 6.0cps ~$117m 2 A-grade Reaffirm forecast Market capitalisation office portfolio FY23 distribution guidance 1 Based on FY23 forecast distribut
Slide 6: HY23 Operational Highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY HY23 Operational Highlights CREDIT Settlement of a $257.2m portfolio, comprising three modern assets $257.2m with a portfolio Weighted Average Lease Expiry of 7.3 years1,2 Modern A-Grade Portfolio The Fund realised proceeds of $186.9 million from the disposal
Slide 7: 2. Portfolio Overview
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 2. Portfolio Overview P.7
Slide 8: Portfolio overview
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Portfolio overview CREDIT Lease Expiry Profile (by income)1,2 Top 10 Tenants1 70% 65.0% Commonwealth Government 32.5% 60% Dentsu 19.4% Monash IVF 11.6% 50% Michael Hill 11.4% 40% Once vacancy and rental guarantee space Kane 6.6% is leased, there are no 30% ex
Slide 9: Diversified, secure income, contracted rent increases
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Diversified, secure income, contracted rent increases CREDIT Tenant Type Composition1,2 Initially East Coast Geography – Focus on Major Markets Public 48.2% 85.2% Government 37.0% Gov. or publicly listed tenants Private 14.8% Rent Reviews1,2 Brisbane (15.7%)3
Slide 10: 510 Church Street, Cremorne VIC
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 510 Church Street, Cremorne VIC CREDIT Summary Metrics Valuation1: $135.0m (50%) NABERS Rating: 5.0 stars2 NLA3: 19,805 sqm Site Area: 3,026 sqm Occupancy4: 82.8% WALE4: 6.6 years Cap Rate: 4.50% $/Sqm3: $13,633 Overview Ownership • 510 Church Street is a bra
Slide 11: 510 Church Street, Cremorne VIC
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 510 Church Street, Cremorne VIC CREDIT Top 5 Tenants2 Dentsu 28.2% Commonwealth Gov 25.9% Monash IVF 16.9% Kane 9.5% TLA 8.4% Major Tenants Lease Expiry Profile2 % total 100% NLA1 Review Expiry Option to Tenant Gross 90% (sqm) type date extend Rent 80% 70% De
Slide 12: 34 Southgate Avenue, Cannon Hill QLD
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 34 Southgate Avenue, Cannon Hill QLD CREDIT Summary Metrics Valuation: $40.5m NABERS Rating: 5.0 stars1 NLA: 3,585 sqm Site Area: 2,598 sqm Occupancy2: 100.0% WALE2: 9.7 years Cap Rate: 4.50% $/Sqm: $11,284 Overview Ownership • 34 Southgate Avenue is a brand-
Slide 13: 34 Southgate Avenue, Cannon Hill QLD
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 34 Southgate Avenue, Cannon Hill QLD CREDIT Top 5 Tenants1 Michael Hill 100.0% Major Tenants Lease Expiry Profile 100.0% % total 100% NLA Review Expiry Option to Tenant Gross 90% (sqm) type date extend Rent 80% 70% Michael Hill 100.0% 3,585 Fixed Sept 32 2x5
Slide 14: 38 Sydney Avenue, Canberra ACT
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 38 Sydney Avenue, Canberra ACT CREDIT Summary Metrics Valuation: $81.7m NABERS rating: 4.5 stars1 NLA: 8,696 sqm Site Area: 3,269 sqm Occupancy2,3: 100.0% WALE2: 8.6 years Cap Rate: 5.00% $/Sqm: $9,395 Overview Ownership • The Property comprises a modern four
Slide 15: 38 Sydney Avenue, Canberra ACT
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 38 Sydney Avenue, Canberra ACT CREDIT Top 5 Tenants1,2 Commonwealth Gov 56.1% Rent Guarantee 24.8% SRC 17.1% Zamlod 2.0% Major Tenants Lease Expiry Profile % total 100% NLA Review Expiry Option to Tenant Gross 90% (sqm) type date extend Rent 80% 73.2% 70% Com
Slide 16: 3. Financials
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT CREDIT 3. Financials P.16
Slide 17: HY23 Balance sheet highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY HY23 Balance sheet highlights CREDIT 31-Dec-22 30-Jun-22 Change Change ($m) ($m) ($m) (%) Cash 6.2 10.8 (4.6) $257.2m During the period, TOT settled the three-asset portfolio as part of the Irongate Group transaction Joint ventures - 18.9 (18.9) of property p
Slide 18: HY23 Profit and loss highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY HY23 Profit and loss highlights CREDIT HY23 HY22 Change Change Profit & loss statement ($m) ($m) ($m) (%) Gross property income 5.0 - 5.0 Gross property income of $5.0m, collected from the Finance revenue 0.2 0.2 0.0 $5.0m three properties acquired as part of
Slide 19: 4. TOT's Tax Benefits
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 4. TOT’s Tax Benefits P.19
Slide 20: TOT's Tax Benefits
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY TOT’s Tax Benefits CREDIT 8.0cps eqv. 2 Franking Approximately 9.0cps of franking credits, Tax equivalent to over 4 years of fully franked Benefit Credits1 distributions1 6.0cps Taxable TOT will pay the taxable component (based on the property net income) fro
Slide 21: 5. Capital Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 5. Capital Management P.21
Slide 22: Capital Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Capital Management CREDIT Debt facility summary Debt terms • TOT has entered into the following debt facility: • Term: 3-years $105m • Facility Limit: $105m Facility limit • Expiring: FY26 Interest rate strategy • TOT’s debt is currently unhedged, the FY23 we
Slide 23: 6. ESG Initiatives
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 6. ESG Initiatives P.23
Slide 24: ESG Initiatives
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY ESG Initiatives CREDIT 510 Church Street, 34 Southgate Avenue, 38 Sydney Avenue, Cremorne, VIC Brisbane, QLD Canberra, ACT Portfolio goal A portfolio with an average NABERS rating of 5.0 stars Current / Target 5.0 stars1 / 5.0 stars 5.0 stars1 / 5.0 stars 4.5
Slide 25: 7. Key Focus and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT CREDIT 7. Key Focus and Guidance P.25
Slide 26: Key Focus and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Key Focus and Guidance CREDIT Focus Status Complete leasing of rental guarantees at: Leasing • 510 Church Street, Cremorne; and • Ongoing • 38 Sydney Avenue, ACT • Look for opportunities to increase size Scale • Ongoing and scale of TOT • Continue to market T
Slide 27: Disclaimer
Disclaimer This presentation has been prepared by 360 Capital FM Limited (ACN 090 664 396) (Responsible Entity) as responsible entity for 360 Capital Active REIT (ARSN 602 303 613) and 360 Capital Passive REIT (ARSN 602 304 432), together 360 Capital REIT (‘TOT’ or the ‘Fund’). This material is a su
Slide 28: REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT James Storey Glenn Butterworth Chief Executive Officer Chief Financial Officer +61 2 8405 8860 +61 2 8405 8860 James,storey@360capital.com.au Glenn.butterworth@360capital.com.au www.360capital.com.au www.360capital.com.au Level 37, 1 Macquarie Pl, Sydn