Qualitas Real Estate Income Fund Units · ASX:QRI
Qualitas Real Estate Income Fund Units — Investor Presentation (October 2021)
35 slides from Qualitas Real Estate Income Fund Units's investor presentation, Oct 7, 2021
Slide 1: Qualitas Real Estate Income Fund Entitlement Offer
Qualitas Real Estate Income Fund (ASX:QRI) ARSN 627 917 971 Entitlement Offer 1
Slide 2: Agenda
Agenda Corporate Governance & Oversight 1 The Offer 2 QRI Overview 3 Qualitas Group Note: See page 31 for Important Information, page 33 for Risk Factors and page 34 for International Offer Restrictions. ASX Release | 7 October 2021 2
Slide 3: The Offer
UALITAS The Offer
Slide 4: QRI Investment Objectives Met
QRI Investment Objectives Met Consistently delivered returns1 to unitholders: Target Return achieved RBA Cash + 5.0% to 6.5% Monthly cash 5.76% 6.05% Distribution Return p.a. Distribution Return p.a. distributions (Aug-21: 3 month) (Aug-21: 12 month) Well diversified by loan type, Portfolio diversif
Slide 5: Key Offer Details: $214m Entitlement Offer
Key Offer Details: $214m Entitlement Offer Trust Qualitas Real Estate Income Fund (ASX:QRI) - ARSN 627 917 971 Manager QRI Manager Pty Ltd – ACN 625 857 070 Responsible Entity (“RE”) The Trust Company (RE Services) Limited – ACN 003 278 831; AFSL 235 150 Investment Strategy To provide Unitholders wi
Slide 6: Key Dates & Timetable
Key Dates & Timetable* Announcement of Entitlement Offer and lodgement of PDS with ASIC Thursday, 7 October 2021 7:00pm (AEDT) on Record Date for Entitlement Offer Tuesday, 12 October 2021 9:00am (AEDT) on Entitlement Offer opens Wednesday, 13 October 2021 Dispatch of PDS (including Entitlement and
Slide 7: Benefits of growing QRI via capital raises
Benefits of growing QRI via capital raises Manager’s long term strategy for the Trust is to continue to capture opportunities that support organic growth and increase the scale of investment activities, market presence and capital base: Improve Increase Operating Increase and Increase portfolio CRE
Slide 8: Capital raising to invest in new loan investments
Capital raising to invest in new loan investments QRI benefits from Manager’s strong commercial real estate (“CRE”) debt pipeline: Actively originating new loan opportunities: • for QRI and Qualitas wholesale funds CRE Debt Pipeline • across all loan types and sectors ~$550m • focusing predominantly
Slide 9: QRI Overview
QUALITAS QRI Overview
Slide 10: QRI Summary
QRI Summary QRI was designed to meet investors’ regular income, capital stability and diversification needs by investing in the growing opportunities of the commercial real estate debt market. 1 QRI provides exposure to the Australian commercial real estate debt market: • in a liquid, regular income
Slide 11: QRI Benefits – why invest?
QRI Benefits – why invest? Regular, stable monthly income at attractive risk-adjusted returns1 Capital preservation: real property mortgages Portfolio Diversification Specialised credit only investing in CRE loans Experienced Manager, co-investment $10m Property exposure without equity risk 1 The pa
Slide 12: Typical investments for income: return and risk scale
Typical investments for income CAPITAL STRUCTURE Equities AREITS Repaid first Property Secured debt Hybrids *CRE Debt Subordinated Debt RETURN SCALE Unsecured debt Private CRE Debt Subordinated debt Corporate Bonds & Loans Bank CRE Debt Hybrids RMBS / ABS Equity Govt. Bonds TDs Repaid last RISK SCAL
Slide 13: CRE debt market landscape
CRE debt market landscape Private Debt Market Opportunity: Alternative Lenders Banks $369Bn Private CRE Debt (93%) Senior loans GAP CRE Debt Market Growth Supportive Macroeconomics Mezzanine loans Australian CRE Debt Market Alternative Lenders Bank Withdrawal increases the “gap” ~ $28Bn (7%) CRE Deb
Slide 14: CRE debt market outlook
CRE debt market outlook Economic resilience... PERFORMING Continuing COVID-19 risks • Completed stock expected to continue to sell RESIDENTIAL due to low interest rates and forecast low however no distress, (MULTI-DWELLING) supply government support • Structural shift away from in-store retail INDUS
Slide 15: Trading performance
Trading performance 3 5 $1.70 $1.60 1 $1.50 4 $1.40 $1.30 $1.20 2 Close NAV $1.10 $1.00 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 1. Since IPO, predominantly traded at a premium to NAV 2. Unit price impacted by COVID-19 induced bear market, despite no impair
Slide 16: Solid fund performance, delivered healthy returns
Solid fund performance, delivered healthy returns Monthly Return1 Net Returns by period 100% 8% 8% Annualised Return % Annualised Return % 75% 6% % Deployment 6% 4% 50% 4% 2% 25% 2% 0% 0% 0% Look through deployment (%) RBA Cash Rate RBA Cash Rate 3 month Net Return % p.a Net Return (% p.a.) Distribu
Slide 17: QRI portfolio targets achieved
QRI portfolio targets achieved Investment mandate constraints1 31 August 2021 Predominantly focused on senior loans 84% (total capital)2 92% (QRI loans)3 Ranking Mezzanine loans: target range 20%-35% (incl. AFWT notes) 7% (total capital)2 8% (QRI loans)3 UNDERWEIGHT ≤ 40% in a single Qualitas wholes
Slide 18: Portfolio composition & metrics
Portfolio composition & metrics Category $ millions % Capital fully allocated3 Cash (QRI & Qualitas funds) uncommitted 29.8 7% Senior Debt Investment Loans 213.6 50% Deployment at 93% Senior Debt Construction Loans 15.1 4% Senior Debt Land Loans 127.5 30% Mezzanine Debt Construction Loans 30.6 7% •
Slide 19: Recent Investments
Recent Investments Melbourne CBD, VIC West End, VIC North Sydney, NSW Fitzroy VIC Senior Investment Residual Stock Senior Land Mezzanine Construction LVR 60% LVR 65% LVR 65% LVR 79% LTC 87% 24 months 24 months 12 months 27 months Weighted average gross return (as at 31 August 2021)* Senior Investmen
Slide 20: Qualitas Group
QUALITAS Qualitas Group
Slide 21: Introduction to Qualitas
Introduction to Qualitas Qualitas is one of Australia’s leading institutional alternative real estate investment management firms, specialising in investing across the entire capital structure of real estate debt and equity 13 Year Track Record1 $4.0 Bn 10 Active managed fund Zero Losses of investor
Slide 22: Qualitas overview
Qualitas overview • Ranked in PERE1 Top 50 APAC Fund Managers and Top 50 Global Debt Fund Managers • Focus on real estate credit, value add/opportunistic, core / long WALE, and build-to-rent (BTR) Specialist • Invest across capital stack in senior debt, mezzanine debt, preferred equity, and equity R
Slide 23: Sustainability Approach
Sustainability Approach Qualitas recognises the increasing importance of environmental, social and governance (ESG) factors and believes embedding these into its governance, culture and investing approach will improve performance over time. Sustainability Beliefs Sustainability creates value, suppor
Slide 24: Institutional-Grade Governance
Institutional-Grade Governance Corporate Governance & Oversight Disciplined Investing & Risk Management* Advisory Board Qualitas Trustee Board1 Group governance and oversight of Governance and oversight of business affairs Qualitas wholesale funds Investment Committee Independent, non-executive chai
Slide 25: Qualitas Advisory Board
Qualitas Advisory Board Michael Schoenfeld Elana Rubin AM Brian Delaney Chairman Non-Executive Non-Executive Since April 2012 Since June 2013 Since March 2021 • Michael is a Chartered Accountant for over 38 years • Elana is the Chairperson of Afterpay and Acting • Brian has more than 30 years of fun
Slide 26: The Qualitas team
The Qualitas team Andrew Schwartz Mark Fischer Tim Johansen Rob McLellan Kathleen Yeung Philip Dowman Anna Wagner Group Managing Director & Global Head of Real Estate Chief Risk Officer Global Head of Strategy Chief Financial Officer Head of People & Culture Global Head of Capital Co-Founder 36 year
Slide 27: Highly Experienced Investment Team
Highly Experienced Investment Team Mark Fischer, Global Head of Real Estate DEVELOPMENT & ORIGINATION EXECUTION & ANALYSIS ASSET SERVICES Rohan Davis, Head of Origination Henry Vuu, Head of E&A Mike Randall, Head of D&AS 24 years experience, 11 years at Qualitas 16 years experience, 12 years at Qual
Slide 28: Appendix
UALITAS Appendix
Slide 29: Investment Process: Loan life cycle
Investment Process: Loan life cycle Due diligence & Formal Closing & Active asset Exit / Loan Origination financial Investment Funding management repayment analysis Approvals SOURCING Track the loan investment performance Regular property inspections Leverages property equity capabilities FILTERING
Slide 30: QRI structure and loan definitions
QRI structure and loan definitions LOAN DEFINTIONS Qualitas Real Estate Income Fund INVESTMENT LOANS (“QRI” or “Trust”) ASX LISTED Loans secured against real estate that is or potentially income generating. 100% Includes residual stock loans which are loans secured against completed construction pro
Slide 31: Important Notices and Disclaimer
MELBOURNE OFFICE SYDNEY OFFICE Email: qri@qualitas.com.au Level 38, 120 Collins Street, Level 23, 1 Farrer Place, Manager Website: www.qualitas.com.au Melbourne VIC 3000 Governor Macquarie Tower, Sydney NSW 2000 Trust Website: www.qualitas.com.au/listed- investments/QRI Important Notices and Disclai
Slide 32: Important Notices and Disclaimer cont.
Important Notices and Disclaimer cont. Future Performance Investment risk This Presentation contains or may contain certain “forward-looking statements” and comments about future An investment in units in the Trust is subject to investment and other known and unknown risks, some of which events, tha
Slide 33: Important Notices and Disclaimer cont. Risk Factors
Important Notices and Disclaimer cont. Risk Factors Disclaimer Investment in the Trust is subject to a number of risks and Investors should refer to Section 8 of the PDS dated 7 October 2021(https://www.qualitas.com.au/listed-investments/qri-overview/) for further details in To the maximum extent pe
Slide 34: International Offer Restrictions
International Offer Restrictions United States Canada (British Columbia and Ontario only) This PDS may not be distributed to, or relied upon by, any person in the United States. In particular, the Units This document constitutes an offering of the New Units in the Canadian provinces of British Colum
Slide 35: International Offer Restrictions cont.
International Offer Restrictions cont. New Zealand This Offer to New Zealand investors is a regulated offer made under Australian and New Zealand law. In Australia, this is Chapter 8 of the Corporations Act and regulations made under that Act. In New Zealand, this is subpart 6 of Part 9 of the Finan
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