360 Capital Reit · ASX:TOT
360 Capital Reit — FY2024 Earnings Presentation
24 slides from 360 Capital Reit's earnings presentation, Aug 22, 2024
Slide 1: FY24 Results Presentation
360 Capital REIT (ASX:TOT) FY24 Results Presentation 22 August 2024 P.1
Slide 2: Table of contents
Table of contents 1 Snapshot and key highlights 4 2 Portfolio overview 7 3 Asset management 13 4 Financials 16 5 FY25 key focus and guidance 21 P.2
Slide 3: Why invest in TOT?
Why invest in TOT? High yield at NTA discount • FY25 fully franked distribution yield of 7.8%1 • Future tax-advantaged distributions through depreciation allowances on modern property portfolio • Trading at (36.9%)2 NTA discount provides for potential capital growth and enhanced total securityholder
Slide 4: 1. Snapshot and key highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 1. Snapshot and key highlights P.4
Slide 5: FY24 financial highlights
360 Capital REIT (ASX:TOT) – FY24 financial highlights Regular income and the potential for capital growth from a diversified portfolio of well leased, modern assets 6.5% 5.25cpu Aligned sponsor FY24 operating FY24 fully franked 360 Capital Group largest securityholder with 39.5%4 of earnings yield1
Slide 6: FY24 operational highlights
360 Capital REIT (ASX:TOT) – FY24 operational highlights Regular income and the potential for capital growth from a diversified portfolio of well leased, modern assets Capital management 6.7 year 740sqm In February 2024, the responsible entity undertook a 0.8:1 entitlement offer to reduce gearing We
Slide 7: 2. Portfolio overview
2. Portfolio overview P.7 P.7
Slide 8: Income profile
Income profile Top 10 Tenants1 Income and review profile1 Tenant Type: 81.6% Government and listed Commonwealth Government 32.4% Private 18.4% Publicly Michael Hill 16.8% Listed 42.2% Dentsu 14.2% Monash IVF 8.7% Government 39.4% SRC Australia (SRC Aus Pty Ltd) 7.0% Kane 4.7% Review Type: 3.1% p.a.
Slide 9: Lease expiry profile
Lease expiry profile Lease expiry profile (by income)1 100% 90% 80% 2.8% 70% 60% 50% FY25 Expiry reduced 40% from 8.0% to 5.2% 64.7% 30% 20% 10% 2.8% 13.2% 7.0% 5.2% 7.1% 0% Vacant FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32+ Current vacancy ADDRESS AREA INCOME (%)1 EXPIRY A.L2, 510 Church Street, Cremo
Slide 10: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Tenancy Profile Summary Metrics % Total NLA3 Review Expiry Option to Valuation1 $105m (50%) Tenant Gross (sqm) type date extend Independent Valuation Rent4 June 2024 Date Dentsu 27.8% 4,668 Fixed Jul-29 3 Ownership Interest 50% Commonwealth Gov. 22.4% 4,307 Fixed Oct-
Slide 11: 34 Southgate Ave, Cannon Hill QLD
34 Southgate Ave, Cannon Hill QLD Tenancy Profile Summary Metrics % total Option Valuation $30.0m NLA Review Expiry Tenant Gross to Independent (sqm) type date June 2024 Rent1 extend Valuation Date Ownership Interest 100% Michael Hill 100.0% 3,585 Fixed Sept 32 2x5 Title Freehold NABERS Rating 5.0 S
Slide 12: 38 Sydney Ave, Forrest ACT
38 Sydney Ave, Forrest ACT Tenancy Profile Summary Metrics % total Option Valuation $66.4m NLA Review Expiry Tenant Gross to Independent Valuation (sqm) type date June 2024 Rent1 extend Date Ownership interest 100% Commonwealth 55.5% 4,857 Fixed Dec-34 5 Government Title3 Leasehold SRC Australia 18.
Slide 13: 3. Asset management
3. Asset management P.13
Slide 14: Leasing
Leasing Richmond-Cremorne Market Profile1 Forrest/Barton Market Profile2 80,000 18.0% 40,000 20.0% 70,000 16.0% 18.0% 30,000 60,000 16.0% 14.0% 50,000 20,000 14.0% 12.0% 40,000 12.0% 30,000 10.0% 10,000 10.0% 20,000 8.0% - 8.0% 10,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 6.0% -10,000 6.
Slide 15: FY25 ESG initiatives
FY25 ESG initiatives Current / Target Property FY25 Initiatives NABERS Rating Continue optimising building performance to 510 Church Street, Cremorne, VIC Achieved: 5.0 Star1 achieve a 5.0 Star NABERS rating without Green Power once 5 Star NABERS the building has reached 100% occupancy Rating across
Slide 16: 4. Financials
REAL ASSETS PRIVATE EQUITY CREDIT 4. Financials P.16
Slide 17: FY24 profit & loss highlights
FY24 profit & loss highlights FY24 FY23 Change Change PROFIT & LOSS STATEMENT3 Statutory net loss of $21.9 million ($m) ($m) ($m) (%) compared to a $47.9 million loss in pcp. Statutory net loss Gross property income 13.7 11.9 1.8 FY24 includes fair value loss of $26.3 million on investment propertie
Slide 18: FY24 balance sheet highlights
FY24 balance sheet highlights 30-Jun-24 30-Jun-23 Change Change BALANCE SHEET ($m) ($m) ($m) (%) Property Portfolio The investment property portfolio includes 3 modern well leased assets valued at Cash 2.4 3.1 (0.7) $201.4m $201.4 million. All properties have been externally valued as at 30 June 202
Slide 19: Valuations and office markets snapshot
Valuations and office markets snapshot Valuations Capital Markets Activity and Outlook • All properties were independently revalued for 30 June 2024 • Cost of capital has increased in line with risk free rates, this is now being reflected in capitalisation rates • Average capitalisation rate softeni
Slide 20: Valuations, debt facility and capital management
Valuations, debt facility and capital management Interest rate strategy Debt facility and capital management • Currently 100% floating to benefit from a potential fall in Australian interest rates Debt terms • Australian interest rates forecast to have peaked and falling in FY25 • Debt facility was
Slide 21: 5. FY25 key focus and guidance
REAL ASSETS PRIVATE EQUITY CREDIT 5. FY25 key focus and guidance P.21
Slide 22: FY25 key focus and guidance
FY25 key focus and guidance Focus Status Complete leasing of vacancy / rental guarantee space at: • Ongoing post recent leasing. Continue active Leasing • 510 Church Street, Cremorne; and discussions to lease remaining vacancies • 38 Sydney Avenue, Forrest ACT Capital • Maintain DRP for near term to
Slide 23: Identifying strategic investment opportunities
Contact details: Tony Pitt Executive Chairman +61 2 8405 8860 Tony.Pitt@360capital.com.au www.360capital.com.au James Storey Chief Executive Officer +61 2 8405 8860 James.Storey@360capital.com.au www.360capital.com.au Glenn Butterworth Chief Financial Officer +61 2 8405 8860 Glenn.Butterworth@360cap
Slide 24: 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