360 Capital Reit · ASX:TOT
360 Capital Reit — H1 FY2020 Earnings Presentation
36 slides from 360 Capital Reit's earnings presentation, Feb 27, 2020
Slide 1: 360 Capital REIT HY20 Results Presentation
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 360 Capital REIT (formerly 360 Capital Total Return Fund) HY20 Results Presentation 27 February 2020
Slide 2: Disclaimer
REAL ASSETS 360 Capital REIT PRIVATE EQUITY PUBLIC EQUITY Disclaimer CREDIT This presentation has been prepared by 360 Capital FM Limited (ACN 090 360 Capital FM Limited and its related bodies corporate and other affiliates 664 396) as responsible entity for 360 Capital Active REIT (ARSN 602 303 and
Slide 3: Table of contents
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Table of contents CREDIT 1 Overview Pg. 4 2 Investment Portfolio – Real Estate Debt Pg. 8 3 Investment Portfolio – Real Estate Equity Pg. 13 4 Investment Portfolio – Operating Businesses Pg. 17 5 HY20 Financial Summary Pg. 20 6 Capital Management Pg. 22 7 Mee
Slide 4: 1. Overview
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 1. Overview
Slide 5: HY20 Key Highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT HY20 Key Highlights Consistent track record of recurring, • Renamed 360 Capital Total Return Fund to 360 Capital REIT (“TOT”) quarterly distributions • Completed merger with URB Investments (URB), increasing the market capitalisation of TOT from $84.9m
Slide 6: 360 Capital REIT
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 360 Capital REIT CREDIT 360 Capital REIT is a diversified real estate fund with investments in real estate equity, debt and real estate operating businesses 360 Capital Active REIT 360 Capital Passive REIT Operating Businesses Real Estate Equity Real Estate D
Slide 7: URB Scheme of Arrangement
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT URB Scheme of Arrangement • Implemented on 20 December 2019 Market capitalisation of S&P/ASX • All assets absorbed by the Fund (ex300) A-REITs1,2 $m • The Fund has commenced the sale of the URB’s 700 $659.7m $628.3m listed equities portfolio, having no
Slide 8: 2. Investment Portfolio – Real Estate Debt
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 2. Investment Portfolio Real Estate Debt
Slide 9: Real Estate Debt Track Record: recent repayments
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Real Estate Debt Track Record: recent repayments Progressively drawn senior Progressively drawn senior Cash advance senior Progressively drawn senior Mezzanine Development of 162 room 4-star Development of 2,396 sqm (GLA) Construction of 30 residential
Slide 10: Loan Portfolio
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Loan Portfolio1 Geography2,3 Investment Type2,3 $101m 100% QLD 2 loan investments $28.4m Senior Loan 28.0% of portfolio Property Type2,3 NSW 2 loan investments 22.9% $54.9m WA 54.4% of portfolio 1 loan investment $8.0m 7.9% of portfolio $101m ACT 1 loa
Slide 11: Real Estate Debt: Loan portfolio
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Real Estate Debt: Loan portfolio CREDIT Progressively drawn senior Cash advance senior Cash advance senior Progressively drawn senior Cash advance senior Cash advance senior Development of 94 apartments Medium density complex Medium density complex Developmen
Slide 12: HY20 Loan Activity
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT HY20 Loan Activity Summary of HY20 Loan Activity $46.8m 100% 9.2% 67.5% Committed to 2 new loans1 Senior loan investments Weighted Average Interest Rate2 Weighted Average Loan-to-Value Ratio3 HY20 Loan Book Activity 4 1. Facility amount including capit
Slide 13: 3. Investment Portfolio – Real Estate Equity
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 3. Investment Portfolio Real Estate Equity
Slide 14: Real Estate Equity: Gladesville Apartments
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Real Estate Equity: Gladesville Apartments • Project located in Gladesville, NSW approximately 10 kilometres north-west of the Sydney CBD 23 • Contracted September 2019, settled November 2019 Brand new apartments • Exchanged contracts for four (4) apar
Slide 15: Real Estate Equity: PURT 4
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Real Estate Equity: PURT 4: Penrith, NSW 510 – 536 High St, Penrith NSW • Greater Western Sydney is Australia’s third-largest economy and has been identified by the NSW State Government as a key corridor for future 95% Occupancy economic development, u
Slide 16: Real Estate Equity: HomeHQ Artarmon
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Real Estate Equity: HomeHQ Artarmon 1 Frederick St, Artarmon NSW • Artarmon has become an inner-Sydney gentrifying area, characterised by low-density industrial and commercial uses, with further redevelopment 100% Occupancy1 potential. • Adaptive re-us
Slide 17: 4. Investment Portfolio – Operating Businesses
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 4. Investment Portfolio Operating Businesses
Slide 18: AMF Finance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT AMF Finance • Strong marketing campaign has resulted in continued market awareness of AMF Finance (AMF) Deals reviewed – • AMF originates all 360 Capital’s real estate debt 129 Over $2.2 Billion deals screened for the opportunities period ending Decemb
Slide 19: Velocity Property Group
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Velocity Property Group CREDIT EQUITY TOT/TGP JV made 19.9% investment in VP7, equity investment INVESTMENT utilized to reduce corporate level debt and working capital Repositioned Velocity Property Group (ASX:VP7) to become a specialist development delivery
Slide 20: 5. HY20 Financial Summary
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 5. HY20 Financial Summary
Slide 21: Key Financial Metrics
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Key Financial Metrics 189% increase in statutory net profit 31-Dec-19 30-Jun-19 Change Change $8.9m attributable to securityholders driven by Balance sheet summary ($m) ($m) ($m) (%) Statutory NPAT gain on URB acquisition Total Assets 181.6 86.7 94.9 1
Slide 22: 6. Capital Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 6. Capital Management
Slide 23: Active Capital Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Active Capital Management Strong and secure balance sheet • $33.1m of cash and $17.3m current receivables balance at 31 December 2019 – $16.9m sale of URB share portfolio, now cash • Debt of $8.2m on Gladesville asset – effectively zero gearing (based
Slide 24: 7. Meet Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 7. Meet Management
Slide 25: Meet Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Meet Management CREDIT • The Fund Manager and other 360 Capital Sydney 10am, Friday, 20 March Dexus Place, level 15, 1 Farrer Place, Sydney 2020 representatives will be presenting the results of TOT and other 360 Capital Funds at the following times and Melbo
Slide 26: 8. Outlook and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 8. Outlook and Guidance
Slide 27: Outlook and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Outlook and Guidance Outlook and focus • Focus on deploying available balance sheet capacity • Greater focus on acquisitions / investments that provide recurring income • Continue to diversify balance sheet to include a portfolio of real estate debt, e
Slide 28: Appendix 1: Financials
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 1: Financials
Slide 29: 1H FY20 balance sheet highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 1H FY20 balance sheet highlights CREDIT As at 31 December 2019, TOT had a 31-Dec-19 30-Jun-19 Change Change $33.1m cash balance of $33.1m ($m) ($m) ($m) (%) Cash balance Cash 33.1 42.3 (9.2) Receivables 17.3 0.1 17.2 Loans receivable 79.7 38.9 40.8 2 AMF Fina
Slide 30: 1H FY20 profit and loss highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 1H FY20 profit and loss highlights CREDIT 1H FY20 1H FY19 Change Change Finance revenue of $3.3m, a 21.4% $3.3m decrease over FY18 ($4.2m for 1H FY Finance revenue ($m) 3.3 ($m) 4.2 ($m) (0.9) (%) Finance revenue 2019) Distribution income 0.8 0.0 0.8 Net gain
Slide 31: Appendix 2: Board of Directors
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 2: Board of Directors
Slide 32: Responsible Entity Board of Directors
REAL ASSETS Responsible Entity Board of Directors PRIVATE EQUITY PUBLIC EQUITY CREDIT David Van Aanholt Tony Pitt Graham Lenzner John Ballhausen Andrew Moffat Non-executive Chairman Executive Director Non-executive Director Non-executive Director Non-executive Director David has over 30 years’ exper
Slide 33: Appendix 3: Management Team
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 3: Management Team
Slide 34: Management team
REAL ASSETS Management team PRIVATE EQUITY PUBLIC EQUITY CREDIT James Storey Glenn Butterworth Bevan Douse Jennifer Vercoe Scott Morgan Head of Real Assets Chief Financial Officer Assistant Fund Manager Company Secretary & Debt Origination Manager Compliance James has over 12 years' experience in Gl
Slide 35: Management team
REAL ASSETS Management team PRIVATE EQUITY PUBLIC EQUITY CREDIT Ainslie Ebejer Libby Langtry Jonathon Nguyen Fraser Matthews Genevieve Naughton Group Financial Controller Investor Relations Manager Analyst Real Estate Debt BDM Debt Transaction Manager Ainslie joined 360 Capital in June Libby oversee
Slide 36: Questions
REAL ASSETS 360 Capital Group 2020 Half Year Results Presentation Questions Libby Langtry – Investor Relations Manager T (02) 8405 8872 |E libby.langtry@360capital.com.au