Aims Property Securities Fund · ASX:APW
Aims Property Securities Fund — FY2018 Earnings Presentation
38 slides from Aims Property Securities Fund's earnings presentation, Oct 18, 2018
Slide 1: FY 18 Annual Results Presentation
For personal use only AIMS PROPERTY SECURITIES FUND FY 18 Annual Results Presentation APW.ASX BVP.SGX AIMS FUND MANAGEMENT LIMITED | FY 2018 AIMS PROPERTY SECURITIES FUND | 1
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This presentation has been prepared and issued by AIMS Fund Management Limited (ABN 79 004 956 558) (AFSL 258052) as responsible entity for the AIMS Property Securities Fund (ARSN 111 442 150). The information contained in this presentation should not be t
Slide 3: Table of Contents
TABLE OF CONTENTS For personal use only I. Introduction II. Prudential Investment Management III. Performance Highlights IV. Financial Highlights V. Unlisted Investments Highlights VI. Management Update VII. Outlook AIMS PROPERTY SECURITIES FUND | 3
Slide 4: I. Introduction
For personal use only I. Introduction AIMS PROPERTY SECURITIES FUND | 4
Slide 5: AIMS Financial Group Overview
AIMS FINANCIAL GROUP OVERVIEW For personal use only Established in 1991, AIMS Financial Group (AIMS) is a diversified financial services and investment group, active in the areas of mortgage lending, securitisation, investment banking, funds management, property investment and high-tech ventures. AI
Slide 6: AIMS Funds Management Overview
AIMS FUNDS MANAGEMENT OVERVIEW For personal use only AIMS Funds Management is a member of the AIMS Financial Group (AIMS), which specialises in the investment management of direct property, real estate securities and mortgage assets. AIMS manages funds of circa A$2.0 billion as at June 2018 and are
Slide 7: MacarthurCook Turn Around Story
MACARTHURCOOK TURN AROUND STORY At the time of acquisition, MacarthurCook's fund management business was severely distressed with each of the 4 listed For personal use only funds and a number of unlisted funds starved of capital and management expertise. Under AIMS' leadership, MacarthurCook's funds
Slide 8: II. Prudential Investment Management
For personal use only II. Prudential Investment Management AIMS PROPERTY SECURITIES FUND | 8
Slide 9: Lesson from the Global Financial Crisis
LESSON FROM THE GLOBAL FINANCIAL CRISIS For personal use only In August 2009 when AIMS took over MacarthurCook, APW was exposed to too many poorly managed unlisted trusts and small listed property trusts with little liquidity. This was disastrous: • APW only held a minority interest in each fund and
Slide 10: Prudential Investment Management
PRUDENTIAL INVESTMENT MANAGEMENT For personal use only Learning from our experience in the GFC, AIMS has carefully followed its prudent, conservative and patient investment approach, focusing not only on income but also capital growth potential. I. POWER AS INVESTOR Where possible, hold material or
Slide 11: Alignment with the Unitholders
ALIGNMENT WITH THE UNITHOLDERS For personal use only 45% 40% 40% 39% 37% 36% 35% 35% 31% 30% % Controlled By AIMS 26% 25% 20% 15% 10% 8% 5% 4% 4% 0% Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Date * The figures in the graph above, do not include units held by independent d
Slide 12: III. Performance Highlights
For personal use only III. Performance Highlights AIMS PROPERTY SECURITIES FUND | 12
Slide 13: Performance Highlights
PERFORMANCE HIGHLIGHTS For personal use only The Fund, observing prudent, conservative and patient investment principles, has endeavoured to maximise returns to investors. Key performance achievements include: ► Growth in Net Asset Value (NAV) and Net Tangible Asset (NTA) per Security Since 2013, NA
Slide 14: Performance – Net Asset Value Increased by 79%
PERFORMANCE – NET ASSET VALUE INCREASED BY 79% For personal use only ► Net Asset Value has grown strongly from $59m to $106m, representing an annual growth of 12.4% (total increase of 79%). The fund has been debt free since 2013. 120 105.8 100 92.2 93.1 88.2 Net Asset Value ($ Millions) 80 76.7 59.0
Slide 15: Performance – NTA per Security Increased by 103%
PERFORMANCE – NET TANGIBLE ASSET (NTA) PER SECURITY INCREASED BY 103% For personal use only $2.50 $2.37 $2.09 $2.13 $2.02 $2.05 $2.03 $1.95 Net Tangible Assets (NTA) / Security ($) $2.00 $1.85 Net $1.68 Tangible $1.50 Asset per $1.30 Security $1.17 (NTA) increased by $1.00 103% $0.50 since 2013 $0.0
Slide 16: Performance – Share Price Discount to NTA Reduced
PERFORMANCE – SHARE PRICE DISCOUNT TO NTA REDUCED FROM 72% TO 34% ► Reduced share price discount to Net Tangible Asset (NTA) from 72% in June 2009 to For personal use only 34% in June 2018 (30/06/18). ► As at the maximum close price reached in September 2018 (being $1.80), the NTA to share price dis
Slide 17: Performance – Share Price Increased by 137%
PERFORMANCE – SHARE PRICE INCREASED BY 137% For personal use only $1.80 $1.60 $1.40 $1.20 Share Price ($) Share Price $1.00 increased $0.80 $0.60 $0.40 137% by since 2013 $0.20 (till 30/6/18) $0.00 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Aug-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Apr-17 Dec-13 Aug-
Slide 18: Performance – Outperformance to the Benchmark
PERFORMANCE – OUTPERFORMANCE TO THE BENCHMARK ► Total return has significantly outperformed the S&P/ASX 200 A-REIT total return index For personal use only over the past five years. 25% 22.1% 20% Total Return (%) 15% 14.0% 13.0% 12.0% 10.8% 9.7% 10% 7.6% 5% 2.9% 0% 1 Year 2 Years 3 Years 5 Years AIM
Slide 19: Performance – Dividend Yield
PERFORMANCE – DIVIDEND YIELD ► Annual distribution yield has fallen for FY 18. For personal use only ► This is primarily due to the sale of units in BlackWall Property Trust, Arena REIT and the freeze in distributions from the AIMS Property Fund (Felix St). 5.0% 4.5% 4.5% 4.4% 4.0% 4.0% 3.5% Dividen
Slide 20: IV. Financial Highlights
For personal use only IV. Financial Highlights AIMS PROPERTY SECURITIES FUND | 20
Slide 21: Financial Highlights – Income Statement & Balance Sheet
FINANCIAL HIGHLIGHTS – INCOME STATEMENT & BALANCE SHEET Income Statement ($’000) FY 18 FY 17 For personal use only Distribution Income 2,753 3,714 Interest Income 166 172 Change In Fair Value Of Investments 12,037 1,832 Net Investment Income 14,956 5,718 Responsible Entity Fees - 181 Administration
Slide 22: Financial Highlights – Financial Position
FINANCIAL HIGHLIGHTS – FINANCIAL POSITION For personal use only Key Metrics - Financial Position FY 18 FY 17 Total Assets $106.13m $93.91m Net Asset Value $105.83m $93.14m Market Capitalisation $70.25m $66.99m Net Tangible Assets (NTA) Per Unit $2.37 $2.09 Unit Trading Price $1.58 $1.50 Price Discou
Slide 23: Financial Highlights – Portfolio Summary
FINANCIAL HIGHLIGHTS – PORTFOLIO SUMMARY Portfolio Summary FY 18 FY 17 For personal use only Total Portfolio Value $98.19m $79.62m Number Of Securities 10 10 Listed Securities 4 5 Listed Securities (% By Value) 12.3% 30.5% Number Of Fund Managers 7 7 Investment Position FY 18 FY 17 AIMS Property Fun
Slide 24: V. Unlisted Investments Highlights
For personal use only V. Unlisted Investments Highlights AIMS PROPERTY SECURITIES FUND | 24
Slide 25: AIMS Property Fund (St Kilda Road) Investment Highlights
AIMS PROPERTY FUND (ST KILDA ROAD) For personal use only Investment Highlights ► Capital Growth Potential a. Prime location with distance to Melbourne CBD of approx. 4km; b. Surrounding parkland and water provides premium views and environment; c. St Kilda Road precinct is recognised as a favoured a
Slide 26: AIMS Property Fund (St Kilda Road)
AIMS PROPERTY FUND (ST KILDA ROAD) For personal use only Property 492 St Kilda Road, Melbourne Current Use B Grade Office Site Area 2,243.3 m2 $44.0 million (30 June 2018) Valuation *Increased from $24.5m in 2013 with growth rate of 12.4% p.a. Occupancy 87.4% (30 June 2018) WALE 1.4 years (30 June 2
Slide 27: AIMS Property Fund (Felix St) Investment Highlights
AIMS PROPERTY FUND (FELIX ST) For personal use only Investment Highlights ► Capital Growth Potential a. Prime Brisbane CBD location at fringe of Golden Triangle, directly behind Waterfront Place; b. The parkland of Brisbane City Botanic Garden and the Brisbane River (25 metres to waterfront) provide
Slide 28: AIMS Property Fund (Felix St)
AIMS PROPERTY FUND (FELIX ST) For personal use only Property 10 Felix St, Brisbane (CBD) Current Use B Grade Office Site Area 1,009 m2 Valuation $24.5 million (30 June 2018) Occupancy 79.2% (30 June 2018) WALE 1.25 years (30 June 2018) - Prime CBD location Investment - Capital value growth potential
Slide 29: AIMS Property Fund (Laverton) Investment Highlights
AIMS PROPERTY FUND (LAVERTON) For personal use only Investment Highlights ► Stable and secured long term cash flows a. 10 year triple-net-lease; b. Blue-chip quality tenant: Patrick Autocare; c. Rental growth at 4% p.a.; and d. 10 years average yield of approximately 8.2%. ► Prime industrial locatio
Slide 30: AIMS Property Fund (Laverton)
AIMS PROPERTY FUND (LAVERTON) For personal use only 78-118 Cherry Lane & 3 James Property Street, Laverton North VIC Current Use Industrial Site Area 238,070 m2 Purchase $40.7m (30 June 2018 up from Price $37.5m in FY 17) Occupancy 100% WALE 6.9 years Rental 4.0% p.a. Escalations - Stable and secure
Slide 31: VI. Management Update
For personal use only VI. Management Update AIMS PROPERTY SECURITIES FUND | 31
Slide 32: Board Members
BOARD MEMBERS For personal use only George Wang , BE Executive Chairman George is the founding CEO of AIMS Financial Group and an active participant in both the Australian and Chinese financial services industries. George came to Australia from China about 30 years ago and founded AIMS Financial Gro
Slide 33: Board Members
BOARD MEMBERS For personal use only Richard Nott AM BSc (Hons), MCom, MBA, MIRM Non-Executive Independent Director Richard Nott is a former General Manager and Chief Executive of CGU Lenders Mortgage Insurance Ltd, General Manager Corporate Banking at Standard Chartered Bank Australia Ltd, General M
Slide 34: Board Members
BOARD MEMBERS For personal use only John Love BCom, MBA, MIRM, CPA Non-executive Independent Director John is currently the Chairman of Mortgage Guarantee Insurance Corporation Australia, and a Non-Executive Director, the Chairman and a Member of Audit, Governance & Risk Management Committee for The
Slide 35: Senior Management
SENIOR MANAGEMENT For personal use only Claud Chaaya, LLB, BComm Director of Property Funds Management Claud has over 10 years experience in the real estate sector, having worked in funds management, equity raisings, research, project management and transactions in both domestic and offshore capital
Slide 36: VII. Outlook
For personal use only VII. Outlook AIMS PROPERTY SECURITIES FUND | 36
Slide 37: Fund Outlook
FUND OUTLOOK For personal use only ► Value-add strategy is intended to drive the capital growth and total return of the portfolio and deliver high risk-adjusted return. ► Strong cash position allows the fund to capitalise on investment opportunities that arise out of changing market conditions. ► Th
Slide 38: AIMS Fund Management Limited – Presents This Report
For personal use only AIMS Fund Management Limited – Presents This Report Claud Chaaya Director – Property Funds Management Telephone: +61 2 9226 0228 Email: claud.chaaya@aims.com.au Address: Level 41, 259 George Street, Sydney NSW 2000 AIMS PROPERTY SECURITIES FUND | 38
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