360 Capital Reit · ASX:TOT
360 Capital Reit — HY24 Earnings Presentation
23 slides from 360 Capital Reit's earnings presentation, Feb 14, 2024
Slide 1: 360 Capital REIT HY24 Results Presentation
360 Capital REIT (ASX:TOT) HY24 Results Presentation 14 February 2024 P.1
Slide 2: Table of contents
Table of contents 1 Snapshot and key highlights 3 2 Portfolio overview 6 3 Asset management 13 4 Financials 16 5 FY24 key focus and guidance 20 P.2
Slide 3: 1. Snapshot and key highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 1. Snapshot and key highlights
Slide 4: 360 Capital REIT – value proposition
360 Capital REIT (ASX:TOT) – value proposition “360 Capital REIT is an ASX-listed diversified AREIT invested in a modern portfolio of income producing office, office/healthcare, high-tech industrial and retail assets within Australia” High-Tech Office / Industrial Healthcare 15.6% 50.8% $227.5m 7.0
Slide 5: HY24 operational highlights
HY24 operational highlights HY24 highlights Completed speculative fit out of remaining level two vacancy at 510 $227.5m Church Street, Cremorne VIC Modern diversified core portfolio All properties externally valued within the last six months, with a Weighted Average Capitalisation Rate (WACR) of 5.3
Slide 6: 2. Portfolio overview
2. Portfolio overview P.6
Slide 7: Portfolio overview
Portfolio overview “84.7% of the portfolio is leased to government and publicly listed tenants, diversified across industry segment and asset class” Portfolio occupancy1 Weighted average lease expiry1 Weighted average cap rate2 Gross assets 93.2% 7.0 years 5.33% $233.6m Portfolio diversification by
Slide 8: Leasing expiry profile
Leasing expiry profile Lease expiry profile (by income)1 Income and Review profile1 70% 65.5% CPI 6.9% 60% 15.3% 50% 40% 84.7% 42.9% 3.1% p.a. Gov. or publicly weighted avg. 30% listed tenants rent review 20% 13.1% 41.8% 10% 6.8% 7.7% 6.9% Fixed 93.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0% Vacant FY24 FY25 FY2
Slide 9: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Tenancy Profile Summary Metrics % Total NLA3 Review Expiry Option to Valuation1 $117.5m (50%) Tenant Gross (sqm) type date extend Independent Valuation Rent4 November 2023 Date Dentsu 23.6% 4,668 Fixed Jul 29 3 Ownership Interest 50% Commonwealth Govt. 21.8% 4,307 Fix
Slide 10: 34 Southgate Ave, Cannon Hill QLD
34 Southgate Ave, Cannon Hill QLD Tenancy Profile Summary Metrics % total Option Valuation $36.0m NLA Review Expiry Tenant Gross to Independent (sqm) type date June 2023 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 11: 38 Sydney Ave, Forrest ACT
38 Sydney Ave, Forrest ACT Tenancy Profile Summary Metrics % total Option Valuation $74.0m NLA Review Expiry Tenant Gross to (sqm) type date Independent Valuation Rent1 extend June 2023 Date Commonwealth Ownership interest 100% 56.1% 4,857 Fixed Dec 34 5 Govt. Title3 Leasehold Rental Guarantee 23.7%
Slide 12: Home HQ, Artarmon NSW – non core asset
Home HQ, Artarmon NSW – non core asset Major Tenants Summary Metrics Valuation1 $3.8m Valuation Date Dec 23 Ownership Interest 4.52% Title2 Leasehold NABERS Rating 6 Stars GLA 22,987 sqm Site Area 1.6 Ha Occupancy3 92.3% Overview Lease expiry profile4 WALE3 3.6 years 100% Cap Rate 6.5% • Completed i
Slide 13: 3. Asset management
3. Asset management
Slide 14: Leasing strategy
Leasing strategy 510 Church Street, Cremorne Speculative Suite Strategy – 510 Church Street, Cremorne • Market enquiry focused on fitted out space • Completed speculative fit out of Level 2 in October 2023 • Comprises two tenancies, being 1,332 Sqm and 1,250 Sqm in line with market demand • Remainin
Slide 15: FY24 ESG initiatives
FY24 ESG initiatives Current / Target Property FY24 Initiatives NABERS Rating Continue optimising building performance, expected to 510 Church Street, Cremorne, VIC 5.0 stars1 achieve a 5-star NABERS rating once the building has reached 100% occupancy. Targeting 5-Star NABERS Rating across the portf
Slide 16: 4. Financials
REAL ASSETS PRIVATE EQUITY CREDIT 4. Financials
Slide 17: HY24 profit & loss highlights
HY24 profit & loss highlights Statutory net profit of $2.3 million HY24 HY23 Change Change PROFIT & LOSS STATEMENT compared to a $17.3 million loss in pcp. ($m) ($m) ($m) (%) Statutory net profit The pcp result included a $17.1 million Gross property income 6.6 5.1 1.5 fair value loss on investment
Slide 18: HY24 balance sheet highlights
HY24 balance sheet highlights 31-Dec-23 30-Jun-23 Change Change BALANCE SHEET ($m) ($m) ($m) (%) Property Portfolio The investment property portfolio includes 3 modern well leased investment Cash 1.9 3.1 (1.2) $227.5m properties valued at $227.5 million. All properties have been externally valued In
Slide 19: Capital management – Entitlement Offer
Capital management – Entitlement Offer Entitlement Offer summary1 Financial snapshot post raising • TOT is seeking to raise up to $46.8 million to reduce borrowings and ongoing interest costs • 0.8 for 1 pro-rata, non-underwritten, non-renounceable Entitlement Offer resulting in the issuance of up t
Slide 20: 5. FY24 key focus and guidance
REAL ASSETS PRIVATE EQUITY CREDIT 5. FY24 key focus and guidance
Slide 21: 2H24 key focus and guidance
2H24 key focus and guidance Focus Status Complete leasing of vacancy / rental guarantee space at: Leasing • Ongoing • 510 Church Street, Cremorne; and • 38 Sydney Avenue, Forrest ACT • Announced 14 February 2024, Entitlement Capital • Complete Entitlement Offer of up to $46.8 million Offer closing 7
Slide 22: Contact details
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 23: 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