360 Capital Reit · ASX:TOT
360 Capital Reit — 360 Capital Total Return Fund — FY2017 Earnings Presentation
19 slides from 360 Capital Reit's earnings presentation, Aug 17, 2017
Slide 1: 360 Capital Total Return Fund FY17 Results
360 Capital G r o u p For personal use only 360 Capital Total Return Fund (ASX: TOT) FY17 Results I 17 August 2017 360 Capital FM Limited (ACN 090 664 396) as responsible entity for the 360 Capital Total Return Passive Fund (ARSN 602 304 432) and 360 Capital Total Return Active Fund (ARSN 602 303 61
Slide 2: Highlights
360Capital 360 Capital G r o u p G r o u p Highlights For personal use only $6.7m $3.1m 8.7% 18.3%1 Total Statutory Profit Operating Profit Underlying Securityholder Investment IRR Return 18.2cps 8.4cps 10.5cps $73.2m2 Statutory Profit Operating Earnings Distributions Market Capitalisation 1. Underl
Slide 3: Investment Strategy
360Capital 360 Capital G r o u p G r o u p Investment Strategy For personal use only $7.1m Junior debt facility Forecast >15.0% IRR 18-20 month term In Due Diligence $63.4m Realisation of strategic holding in IDR 18.3% IRR / 2 yr hold Completed 2017 2
Slide 4: Value Proposition
360Capital 360 Capital G r o u p G r o u p Value Proposition For personal use only TOT’s investment mandate is flexible and opportunistic, taking advantage of market conditions that provide investors with risk adjusted, total returns in excess of 12% p.a. Equity Investing Debt Investing Target IRR >
Slide 5: Strategic Equity - Industria Investment
360Capital 360 Capital G r o u p G r o u p Strategic Equity - Industria Investment For personal use only IRR 18.3% • Since listing, TOT has been focused on equity opportunities p.a. • TOT invested $57 million in IDR at an average entry price of $2.07 per unit • Post capital raising, increased holdin
Slide 6: The Changing Capital Landscape
360Capital 360 Capital G r o u p G r o u p The Changing Capital Landscape For personal use only Authorised Deposit taking Institutions commercial property exposures are near limits, with slowing growth $bn, March Year-End %, YoY Growth $bn, As at March 2017 400 15% Office 300 10% Retail Industrial 2
Slide 7: Multi Channel Origination Strategy
360Capital 360 Capital G r o u p G r o u p Multi Channel Origination Strategy For personal use only Direct AMF, through 360 Capital, has great relationships across the property industry and sources deals directly through its network Broking Relationships AMF and 360 Capital have built relationships
Slide 8: Partnering with Australian Banks
360Capital 360 Capital G r o u p G r o u p Partnering with Australian Banks For personal use only AMF structured finance product, heads of agreement signed with a major Australian Bank legal documentation underway, first deal under review Current lending environment AMF stretch senior APRA capital a
Slide 9: Broker Relationships
360Capital 360 Capital G r o u p G r o u p Broker Relationships For personal use only - AMF/TOT building strong broker relationships - Commenced active marketing to broker networks in July 2017 - AMF and 360 Capital are now on eight non-bank lending panels with major commercial brokerage firms - >$1
Slide 10: Direct Transactions
360Capital 360 Capital G r o u p G r o u p Direct Transactions For personal use only Background Opportunity to provide junior financing to a well known private developer, pre- committed 15-year commercial development. The site has been purchased and all planning approvals are in place. The developer
Slide 11: Current Opportunities Under Review
360Capital 360 Capital G r o u p G r o u p Current Opportunities Under Review For personal use only City Location Project Type Loan Size Term Sydney Premier, Lower North Shore Residential – apartments Senior $4.0m 12 months Sydney Upper North Shore Residential – townhouses Senior $20.0m 12-15 months
Slide 12: Earnings and Distributions
360Capital 360 Capital G r o u p G r o u p Earnings and Distributions For personal use only Jun 17 Jun 16 CHANGE ($m) ($m) • The Fund no longer owns any direct real Rental from investment properties - 1,269 estate assets Distribution income 3,636 2,732 Finance revenue 82 201 • Distribution income in
Slide 13: Assets and Liabilities
360Capital 360 Capital G r o u p G r o u p Assets and Liabilities For personal use only Jun 17 Jun 16 CHANGE ($m) ($m) • Increase in cash as a result of the April- Cash 19,858 1,094 17 capital raising Receivables 2,204 1,488 • Increase holding of IDR to 27.55m Units IDR investment 63,091 38,751 (rea
Slide 14: Distribution History
360Capital 360 Capital G r o u p G r o u p Distribution History For personal use only Regular quarterly distributions, enhanced by special distributions – increasing year on year to date Illustrative Fully Deployed3 Potential 12-14cps FY181 12.0cps 10.5cps Potential earnings Target Base 8.5cps from
Slide 15: Active Capital Management
360Capital 360 Capital G r o u p G r o u p Active Capital Management For personal use only -$40.6m raised via 15% placement and 1:1 entitlement @ $1.15 -Significant institutional support, five new institutions entered the register -Unitholders refreshed placement capacity in July 2017 providing fund
Slide 16: Outlook
360Capital 360 Capital G r o u p G r o u p For personal use only Outlook -Changing credit conditions for Australian banks have led to senior and junior debt positions offering higher relative returns on a risk adjusted basis -Monetary policy appears to have reached the bottom of the interest rate cy
Slide 17: Appendices
360 Capital G r o u p For personal use only Appendices FY17 Results I 17 August 2017
Slide 18: Board of Directors
360Capital 360 Capital G r o u p G r o u p Board of Directors For personal use only DAVID VAN AANHOLT, CHAIRMAN & INDEPENDENT DIRECTOR David has over 25 years of experience in the property and funds management industry. Prior to establishing his own property group in 2007, David was the Chief Execut
Slide 19: Key Management Team
360Capital 360 Capital G r o u p G r o u p Key Management Team For personal use only BEN JAMES, CHIEF INVESTMENT OFFICER Ben joined 360 Capital in 2010 and is responsible for all fund investment activities within the group. Ben has over 19 years’ experience in Real Estate Funds Management and Invest
360 Capital Total Return Fund — FY2017 Earnings Presentation on 6ix