GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis UK Listed Property (PAIF) Fund — Investor Presentation (January 2024)
36 slides from GCP Asset Backed Income Fund's investor presentation, January 2024
Slide 1: Gravis UK Listed Property (PAIF) Fund
\T GRAVIS UK LISTED PROPERTY (PAIF) FUND “© JANUARY 2024
Slide 2: Contents
CONTENTS 3 The UK Property Sector 9 Introduction to the Fund 17 Market Themes 21 Current Positioning 27 Appendix GRAVIS UK LISTED PROPERTY
Slide 3: The UK Property Sector
THE UK PROPERTY SECTOR Gravis
Slide 4: Benefits of REITs
BENEFITS OF REITS REITs are structurally suited to provide liquid access to an illiquid asset class. Investment in REITs allows a focus on long term portfolio returns rather than provision of short-term liquidity. Po Real Estate Investment Trusts Open Ended Direct Property Funds Structure LSE listed
Slide 5: REITs Benefit Multi-Asset Portfolios
REITS BENEFIT MULTI-ASSET PORTFOLIOS REITs “improve a multi-asset portfolio’s risk-return characteristics”*. OXFORD G@EPRA ECONOMICS : Allocation to REITS* LISTED REAL ESTATE INA 8% 5% 3% MULTI-ASSET PORTFOLIO: A EUROPEAN PERSPECTIVE GREITS ™Cash SEPTEMBER 2019 = Alternatives = Equities Fixed Intere
Slide 6: Key Themes Driving Returns
KEY THEMES DRIVING RETURNS There are five key themes in the real estate sector: ageing populations, digitalisation, urbanisation, generation rent and changing consumer behaviour. PROPERTY TRENDS -—— -YINIIIVVNANH rrr Changing Consumer Behaviour Healthcare Alternative Industrial & Housing & Commercia
Slide 7: Case Study - Ageing Population & Generation Rent
CASE STUDY - AGEING POPULATION & GENERATION RENT Ageing population: GP surgeries ‘Generation Rent’: Purpose Built Student Accommodation + Over 85s visit their GP 13 times on average each year" + Long-term growth drivers: UK demographics, growth in UK 18-year-olds and ageing university estates? + Num
Slide 8: Case Study - Digitalisation & Urbanisation
CASE STUDY - DIGITALISATION & URBANISATION Digitalisation: E-Commerce Urbanisation: Office Space * Online retailing requires 3x more warehouse space than traditional + High BREEAM ratings increase London office rents by up to 12.3%?. retailing. * Greenest buildings command office rent premiums. * Th
Slide 9: Introduction to the Fund
INTRODUCTION TO THE FUND Gravis
Slide 10: Proven Investment Process
PROVEN INVESTMENT PROCESS ACTIVE FUND CONSTRUCTION MANAGEMENT Ensure diversification & COST across the UK listed AWARENESS realestate sector through security selection Seeks opportunities to minimisethe entry price RISK MANAGEMENT Focus on higher quality companies withlow to moderate leverage ee a I
Slide 11: Fund Overview and Objectives
FUND OVERVIEW AND OBJECTIVES Objectives Limits within which the Fund is managed Minimum of 16 holdings — currently 23* Maximum holding 9.5%. Deliver real estate like returns with daily liquidity. Achieve capital appreciation over market cycles®. Cash yield of 4% p.a.4 paid quarterly. No shorting of
Slide 12: Liquidity & Quality
LIQUIDITY & QUALITY UK Real Estate 80+ Listed Companies >£90bn combined market cap Excluding Retail 70+ Listed Companies >£80bn combined market cap Liquid & Tradable 45+ Listed Companies >£50bn combined market cap >£80mn averaae daily volume VT Gravis UK Listed Property 20+ Investments GRAVIS UK LIS
Slide 13: REITs can be worth much more than the external valuer's assessment
REITs can be worth much more than the external valuer’s assessment. ll [property] valuations are professional opinions... a valuation is not a fact’, RICS Red Book. "A market value basically looks at the past and can create a lagging effect. This can lead to an underestimation of current market valu
Slide 14: Beware of Discount Traps
BEWARE OF DISCOUNT TRAPS Good quality REITs trade at a premium. Annualised total return over 9 years! Discount dangers - over the past 9 years a portfolio of REITs trading at the highest premium to NAV has outperformed those trading at the largest discounts. Ist 2nd 3rd Ath 8% 7% 6% 5% 4% 3% 2% 1% 0
Slide 15: Building a Diversified Portfolio
BUILDING A DIVERSIFIED PORTFOLIO The Fund invests in multiple REITs, which own or invest in a diversified pool of properties. n Portfolio of REITs & REOCs Impact Healthcare Segro Derwent London Unite Group mea Tritax Big Box Safestore 126 properties 110 properties 46 properties 172 properties ae 62
Slide 16: Attractive Development Pipelines
ATTRACTIVE DEVELOPMENT PIPELINES Development pipelines deliver superior returns to investors in specialist REITs!. Development Exposure? 100 oe i = Tritax Symmetry Park, Bicester. First net zero carbon building in construction in the Tritax GAV (current / rebased) Development value GAV (inc developm
Slide 17: Market Themes
MARKET THEMES Gravis
Slide 18: Managing Climate Risk
MANAGING CLIMATE RISK Government Minimum Energy Efficiency Standards require non-domestic properties to have a minimum EPC rating of B by 2030, with an interim target of EPC C by 2027. The EPC rating of GULP’s underlying assets have improved through time (2019 to 2023)! MEPCA-B MEPCC-G 2023 2022 202
Slide 19: Green is the New Prime - Tenants Are Demanding It
GREEN IS THE NEW PRIME — TENANTS ARE DEMANDING IT Trinity of green investment forces — regulation, capital supply and tenant demand. Sustainability-focused tenants/investors paying a ‘green premium’ to rent/buy buildings with high sustainability credentials. 1 2 ma Central London Offices ’ EPC BREEA
Slide 20: Current Positioning
CURRENT POSITIONING Gravis
Slide 21: Portfolio Exposure and Top Holdings
PORTFOLIO EXPOSURE AND TOP 10 HOLDINGS Portfolio as at 31 December 2023. Company Unite Group PLC Tritax Big Box REIT PLC SERGO PLC Grainger PLC Londonmetric Property PLC PRS REIT PLC Big Yellow Group PLC Impact Healthcare REIT PLC Urban Logistics REIT PLC Assura PLC Holding 9.15% 7.84% 7.16% 7.59% 5
Slide 22: Reliable Distributions
RELIABLE DISTRIBUTIONS Quarterly since inception to 31 December 2023. =Q! 2019 0.1556p ™Q2 Q3 Q4 2020 3.0501p 1°) 1 2 3 4 5 Past performance is not necessarily a guide to future performance. The Fund launched on 31.10.2019, Data as at 31 December 2023, Distributions shown are for the A Inc Shere Cla
Slide 23: Cost Savings
COST SAVINGS Since inception, the Fund has made savings of 144bps by investing c. £14.8 million across 24 placings. Klemp [petnistel Sdn Amount Invested (£m) Saving at fund level placings 2023 to date 2022 2021 2020 2019 Inception to date GRAVIS UK LISTED PROPERTY 14 24 18 10.3 0.8 1.0 £14.8m 0.10%
Slide 24: Growth Income Not Fixed Income
GROWTH INCOME NOT FIXED INCOME Regular DPS growth since launch. 4,6766p e837? 4 3.7670p a.e6sip Sg057° : _— om a | [] o O7856> umm Nov 19 Feb 20 May 20 Aug 20 Nov 20 Feb 21 May 21 Jun 21 Cumulative DPS growth 14.4832p 5,9997p 13.6581p 12.6417p 11.6114p 10.4590p 9.7317 8.7324p 7.1987p | Sep 21 Dec 21
Slide 25: Reliable Distributions
RELIABLE DISTRIBUTIONS Driven by strong underlying investments, the Fund has paid 18 distributions since inception. REITs offer attractive 3%+ dividend yields with growth potential. In contrast, 0.5% yields on indexed-linked gilts. Years of Consecutive Company Dividend per Share Growth Dividend yiel
Slide 26: Fund performance vs UK and World IMI Core Real Estate
UK IMI Core Real Estate 140 World IMI Core Real Estate VT Gravis UK Listed Property A Acc 130 120 110 100 90 80 70 60 Oct 19 Aug 20 Jun 21 Apr 22 Feb 23 Dec 23
Slide 27: Appendix
APPENDIX Gravis
Slide 28: 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 29: Key Terms
KEY TERMS Fund Size Yield (A Inc GBP) Share Classes Minimum Investment Capped fund operating charges* Synthetic OCF** Launch Date Launch Price (31/10/2019) Valuation and trading Investment Association Sector Holdings Number of holdings Distributions Classification £ISINs & SEDOLs £104.59m (as at 31
Slide 30: Independent Ratings
INDEPENDENT RATINGS Ethical Screening A database of UK funds that apply ethical exclusions, ESG and impact aligned investment criteria. FE Crown Fund Rating Designed to help investors identify funds that have superior performance in terms of stock picking, consistency and risk control. The Fund was
Slide 31: Gravis Responsible Investment
GRAVIS RESPONSIBLE INVESTMENT Gravis’ Commitments Gravis Responsibe Investment Policy GRAVIS UK LISTED PROPERTY 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 Abi
Slide 32: Platforms and Wrappers
PLATFORMS AND WRAPPERS Available on the following platforms 7IM Aegon AJ Bell Allfunds Ascentric Aviva Barclays CoFunds Fidelity Funds Network FNZ Hargreaves Lansdown Hubwise Interactive Investor James Hay Novia Nucleus Old Mutual Quilter Pershing Raymond James Sanlam SEI Standard Life - Elevate Sta
Slide 33: Contact Information
CONTACT INFORMATION Investment Manager and Dealing == Valu-Trac Investment Management Limited = 01343 880217 Valu-Trac Dealing 01343 880344 Investment Adviser Distribution Matthew Norris Fund Adviser, Director of Real Estate 020 3405 8553 matthew.norris@graviscapital.com Securities Emma Ballard Asso
Slide 34: 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 35: 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 36: Gravis
Gravis INVESTMENT IDEAS FOR THE LONG RUN
VT Gravis UK Listed Property (PAIF) Fund — Investor Presentation (January 2024) on 6ix