360 Capital Reit · ASX:TOT
360 Capital Reit — 360 Capital Total Return Fund — FY2019 Earnings Presentation
25 slides from 360 Capital Reit's earnings presentation, Aug 21, 2019
Slide 1: 360 Capital Total Return Fund FY19 Results Presentation
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY 21 August 2019 PUBLIC EQUITY CREDIT For personal use only 360 Capital Total Return Fund FY19 Results Presentation
Slide 2: Disclaimer
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.2 PRIVATE EQUITY PUBLIC EQUITY Disclaimer CREDIT For personal use only 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)
Slide 3: Table of contents
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.3 PRIVATE EQUITY PUBLIC EQUITY Table of contents CREDIT For personal use only 1 Highlights P.4 2 Portfolio P.8 3 Financials P.18 4 Guidance & outlook P.21 A1 Appendix 1 – Management team P.23
Slide 4: 1. Highlights
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only 1. Highlights
Slide 5: TOT's Strategy
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.5 PRIVATE EQUITY PUBLIC EQUITY TOT’s Strategy CREDIT For personal use only Our investment strategy is focused on 4 key areas: • Direct real estate Asset repositioning Rezoning / redevelopment Income generating real estate • Indi
Slide 6: TOT's Strategy: investing across the capital stack
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.6 PRIVATE EQUITY PUBLIC EQUITY TOT’s Strategy CREDIT For personal use only Debt positions Equity positions Highest Risk / Lowest Protection TOT invests across the real estate capital stack taking advantage of market conditions t
Slide 7: FY19 Key Highlights
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.7 PRIVATE EQUITY PUBLIC EQUITY CREDIT FY19 Key Highlights For personal use only • $46.1m of new loans settled during the period $56.6m $42.3m • $56.6m of 1st mortgage loans repaid during the period, 1st mortgage loan Cash on bal
Slide 8: 2. Portfolio
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only 2. Portfolio
Slide 9: Real Estate Debt
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.9 PRIVATE EQUITY PUBLIC EQUITY Real Estate Debt CREDIT For personal use only • Banking Royal Commission and changes to prudential regulation continue to benefit non-bank 6 $69.8m sector Loan investments Loan book1 • Secured loan
Slide 10: Maintaining Diligent Lending Standards
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.10 PRIVATE EQUITY PUBLIC EQUITY CREDIT Maintaining Diligent Lending Standards For personal use only • We continue to maintain our diligent lending standards • We will not negotiate on covenant packages $71.2m Deals Reviewed - >$
Slide 11: TOT Loan Portfolio
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY PUBLIC EQUITY CREDIT TOT Loan Portfolio For personal use only Geography1 Investment Loan Type1 10.9% 89.1% QLD 1 loan $4.7m 6.7% of portfolio Mezzanine Senior Property Type1 10.9% 11.5% WA NSW 2 loans 2 loans $15.6m
Slide 12: FY19 Loan Activity
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.12 PRIVATE EQUITY PUBLIC EQUITY CREDIT FY19 Loan Activity For personal use only Summary of FY19 Loan Activity $46.1m 100% 9.9% 64.0% Committed to 3 new loans1 Senior loan investments Weighted Average Interest Rate2 Weighted Aver
Slide 13: Recent loan repayments
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.13 PRIVATE EQUITY PUBLIC EQUITY Recent loan repayments CREDIT For personal use only Progressively drawn senior Progressively drawn senior Cash advance senior Development of 162 room Development of 2,396 sqm Construction of 30 Pr
Slide 14: Recent loan investments
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.14 PRIVATE EQUITY PUBLIC EQUITY Recent loan investments CREDIT For personal use only Cash advance senior Cash advance senior3 Progressively drawn senior4 Medium density complex Medium density apartment Development of 27 comprisi
Slide 15: Loan portfolio
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.15 PRIVATE EQUITY PUBLIC EQUITY CREDIT Loan portfolio For personal use only Progressively drawn senior Cash advance senior3 Cash advance senior Mezzanine Progressively drawn senior Medium density complex Medium density complex D
Slide 16: Indirect Real Estate – AMF Finance
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.16 PRIVATE EQUITY PUBLIC EQUITY Indirect Real Estate – AMF Finance CREDIT For personal use only • AMF Finance Pty Limited 50% owned by TOT • AMF originates all 360 Capital and TOT’s real estate debt transactions • Provides TOT w
Slide 17: Indirect Real Estate – URB Investments
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.17 Indirect Real Estate – ASX: URB PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only • TOT has acquired a 11.3%1 interest in ASX:URB and is now the second-largest URB Shareholder • Based on the current trading price of U
Slide 18: 3. Financials
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only 3. Financials
Slide 19: FY19 balance sheet highlights
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.19 PRIVATE EQUITY PUBLIC EQUITY FY19 balance sheet highlights CREDIT For personal use only As at 30 June 2019, TOT had a cash 30-Jun-19 30-Jun-18 Change Change $42.3m balance of $42.3m. Post reporting ($’000) ($’000) ($’000) (%)
Slide 20: FY19 profit and loss highlights
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.20 PRIVATE EQUITY PUBLIC EQUITY FY19 profit and loss highlights CREDIT 30-Jun-19 30-Jun-18 Change Change For personal use only Finance revenue of $8.7m, a 252% $8.7m increase over FY18 ($2.46m at 30 June ($’000) ($’000) ($’000)
Slide 21: 4. Guidance & outlook
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY 21 August 2019 PUBLIC EQUITY CREDIT For personal use only 4. Guidance & outlook
Slide 22: FY20 key goals
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation P.22 PRIVATE EQUITY PUBLIC EQUITY FY20 key goals CREDIT For personal use only MARKET Regulatory changes, coupled with the implementation of Basel IV capital controls have restricted Australian banks’ exposure to real estate constr
Slide 23: Appendix: Management team
REAL ASSETS 360 Capital Total Return Fund – FY19 Results Presentation PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only → Appendix: Management team
Slide 24: Management team
REAL ASSETS Management team P.24 PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only James Storey Scott Morgan Glenn Butterworth Jennifer Vercoe Head of Real Assets Debt Origination Manager Chief Financial Officer Company Secretary & Compliance James has over 12 years' Scott has 20 years' expe
Slide 25: Management team
REAL ASSETS Management team P.25 PRIVATE EQUITY PUBLIC EQUITY CREDIT For personal use only Alan Wang Jonathon Nguyen Fraser Matthews Libby Langtry Ainslie Ebejer Senior Analyst Analyst Real Estate Debt BDM Investor Relations Manager Group Financial Controller Alan joined 360 Capital as a Senior Jona
360 Capital Total Return Fund — FY2019 Earnings Presentation on 6ix