Hmc Capital Limited · ASX:HMC

Hmc Capital — IPO Roadshow (October 2020)

33 slides from Hmc Capital's IPO roadshow presentation, Oct 12, 2020

1. Slide 1: HomeCo Daily Needs REIT IPO Briefing Presentation (ASX release)

   ASX RELEASE 12 October 2020 HOMECO DAILY NEEDS REIT IPO BRIEFING PRESENTATION Home Consortium provides the attached HomeCo Daily Needs REIT IPO Briefing Presentation. -ENDS- For further information please contact: INVESTORS Will McMicking Tom Kohlen CFO Investor Relations Executive +61 451 634 991 +

2. Slide 2: HomeCo Daily Needs REIT IPO Briefing Presentation

   – Briefing HomeCo Daily Needs REIT IPO2020 Half Year Results Presentation 26 February October2020 2020

3. Slide 3: Important notices

   ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Important notices NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES This presentation (Presentation) has been prepared by Home Consortium (a stapled entity compri

4. Slide 4: Important notices (continued)

   ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Important notices (continued) Past Performance Past performance information given in this Presentation is given for illustrative purposes only and should not be reli

5. Slide 5: Agenda

   ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Agenda I. Overview of HomeCo Daily Needs REIT II. Acquisitions III. Growth strategy IV. Financials V. Supplementary information 3

6. Slide 6: Overview of HomeCo Daily Needs REIT

   Photo: HomeCo Hawthorn East Overview of HomeCo Daily Needs REIT

7. Slide 7: Establishment of HomeCo Daily Needs ASX-listed REIT

   ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Establishment of HomeCo Daily Needs ASX-listed REIT Transaction overview and timing Summary HomeCo Daily Needs REIT post completion  HomeCo (HMC) intends to establi

8. Slide 8: HomeCo Daily Needs REIT investment highlights

   ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx HomeCo Daily Needs REIT investment highlights Portfolio of stabilised, convenience based assets targeting consistent growing distributions 1  Diversification across

9. Slide 9: HomeCo Daily Needs REIT at a glance

   ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx HomeCo Daily Needs REIT at a glance High quality and defensive exposures across target sub-sectors, tenants and geographies Portfolio statistics1 Model portfolio tar

10. Slide 10: Model portfolio

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Model portfolio Model portfolio weighting has historically delivered enhanced returns1 Correlation benchmarking (2007–2019) Total returns and volatility by sector (2

11. Slide 11: Geographically diverse and strategically located portfolio

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Geographically diverse and strategically located portfolio 94% weighted to metropolitan growth corridors1 Brisbane / Gold Coast Perth Butler Joondalup Ellenbrook CBD

12. Slide 12: High quality and diversified tenant mix with long lease expiry profile

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx High quality and diversified tenant mix with long lease expiry profile Defensive tenant mix with top 10 tenants representing ~50% of gross rental income ~77% <14% 94

13. Slide 13: Board of Directors

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Board of Directors The proposed HomeCo Daily Needs REIT Board will consist of an Independent Chairman and majority Independent Directors Simon Shakesheff Independent

14. Slide 14: Acquisitions

    Photo: HomeCo Joondalup Acquisitions

15. Slide 15: Glenmore Park Town Centre (Sydney, NSW)

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Glenmore Park Town Centre (Sydney, NSW) Neighbourhood centre located in high growth corridor in Western Sydney Description Woolworths, Coles & ALDI anchored centre o

16. Slide 16: Gregory Hills Town Centre (Sydney, NSW)

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Gregory Hills Town Centre (Sydney, NSW) Neighbourhood centre located in high growth corridor in South West Sydney Description Woolworths anchored centre opened 2019.

17. Slide 17: Growth strategy

    Photo: HomeCo Mornington Growth strategy

18. Slide 18: Targeting strong total returns

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Targeting strong total returns Delivering stable growing income streams with additional opportunities for growth Target annual total returns Commentary Drivers % p.a

19. Slide 19: Investment criteria and objectives

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Investment criteria and objectives Overall investment objectives Ownership of a stabilised portfolio of convenience based assets targeting consistent growing distrib

20. Slide 20: Development opportunities

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Development opportunities Only 31% of HomeCo Daily Needs REIT’s ~630,000sqm land bank is currently converted to GLA1, 2  Pad developments are the construction of ne

21. Slide 21: Financials

    Photo: HomeCo Braybrook Financials

22. Slide 22: Statements of profit and loss

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Statements of profit and loss Statutory and pro forma statements of profit and loss Reconciliation to FFO Statutory Statutory forecast – Pro forma forecast – Pro for

23. Slide 23: Pro forma statement of financial position

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Pro forma statement of financial position Pro forma statement of financial position at the Completion Date Key metrics A$ 000s Cash and cash equivalents 5,000 Units

24. Slide 24: Supplementary information

    Supplementary information

25. Slide 25: HMC strategic rationale

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx HMC strategic rationale The in-specie distribution of HomeCo Daily Needs REIT provides the foundation for the next phase of HMC’s ‘Own, Develop and Manage’ strategy

26. Slide 26: Management Fees

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Management Fees1 Investment Management Agreement 0.65% of the REIT's GAV up to $1.5 billion; 0.55% for the portion of the Management Fee REIT's GAV greater than $1.5

27. Slide 27: Asset summary

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx HomeCo Daily Needs REIT | Asset summary Glenmore Park Town Centre Gregory Hills Town Centre HomeCo Hawthorn East HomeCo Vincentia State NSW State NSW State VIC State

28. Slide 28: Asset summary (continued)

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx HomeCo Daily Needs REIT | Asset summary (continued) HomeCo Mornington HomeCo Keysborough HomeCo Butler HomeCo Prestons State VIC State VIC State WA State NSW Ind. va

29. Slide 29: Asset summary (continued)

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx HomeCo Daily Needs REIT | Asset summary (continued) HomeCo Richlands HomeCo Ellenbrook State QLD State WA Ind. value ($m) 24 Ind. value ($m) 13 WACR (%) 6.5% WACR (%

30. Slide 30: Specific assumptions

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Specific assumptions Risk Commentary  Rental income comprises the majority of the REIT’s revenue and is generated through operating leases. Rental income includes o

31. Slide 31: Specific assumptions (continued)

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Specific assumptions (continued) Risk Commentary Net interest expense  Borrowings under the new Debt Facility are forecast to incur an all-in average interest rate

32. Slide 32: Summary of key risks

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Summary of key risks Risk Commentary HomeCo Daily Needs REIT  HomeCo Daily Needs REIT will be a new standalone ASX listed entity with no previous trading history is

33. Slide 33: Summary of key risks (continued)

    ibdroot\projects\IBD-HK\gazelle2020\661298_1\Presentations\2020-09-18 Investor Presentation\2020.10.12 HomeCo Daily Needs REIT vF.pptx Summary of key risks (continued) Risk Commentary  HomeCo is expected to retain a substantial Unitholding in the REIT. As such, HomeCo and its associates are likely

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