Arena Reit · ASX:ARF
Arena Reit — Merger or Acquisition (May 2019)
26 slides from Arena Reit's merger presentation, May 21, 2019
Slide 1: Acquisitions and Equity Raising Presentation
PAGE 1 Arena REIT Acquisitions and Equity Raising Presentation NOT FOR RELEASE TO US WIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES 21 May 2019 Arena REIT / Acquisitions and Equity Raising Presentation / www.arena.com.au
Slide 2: Important notice and disclaimer
Important notice and disclaimer PAGE 2 This investor presentation (“Presentation”) has been prepared by Arena REIT (“Arena Summary information (continued) REIT”) comprising Arena REIT Limited (ACN 602 365 186), Arena REIT Management The historical information in this Presentation is, or is based upo
Slide 3: Important notice and disclaimer (continued)
Important notice and disclaimer (continued) PAGE 3 Not advice Future performance Nothing in this Presentation constitutes financial product, investment, legal, tax or other This Presentation contains certain “forward looking statements”. Forward looking advice. This Presentation has been prepared wi
Slide 4: Important notice and disclaimer (continued)
Important notice and disclaimer (continued) PAGE 4 Except as required by law or regulation (including the ASX Listing Rules), Arena REIT Disclaimer (continued) undertakes no obligation to provide any additional, updated or supplementary The Lead Manager, together with its related bodies corporate, s
Slide 5: Contents
Contents PAGE 5 Arena REIT / Acquisitions and Equity Raising Presentation / www.arena.com.au
Slide 6: Overview
Overview PAGE 6 Equity raising to fund recent acquisitions and maintain capacity for growth opportunities • Arena has settled, exchanged contracts or entered heads of agreement during 2H FY19 to acquire and develop additional social infrastructure properties with a total investment of $62 million (t
Slide 7: Arena portfolio
Arena portfolio PAGE 7 Acquisition of 11 properties1 on net yield on total cost of 6.5%2 with 18 year WALE 31 Dec 18 Metric 31 Dec 18 Acquisitions Pro Forma Number of properties 218 11 229 Portfolio value (A$m) $743 million $62 million $805 million Weighted average yield (%) 6.5% 6.5% 6.5% 31 May 19
Slide 8: Portfolio impact
Portfolio impact PAGE 8 Acquisitions improve portfolio diversification by sector, geography and tenant Sector Geographic Tenant diversification1 diversification1 diversification2 1% 3% 3% 13% 13% 3% 7% 33% 32% 5% 8% At 31 25% December3 12% 2018 87% 13% 14% 30% QLD VIC NSW WA Goodstart Green Leaves E
Slide 9: Acquisitions and development pipeline
Acquisitions and development pipeline PAGE 9 Six operating assets settled and five new projects added to development pipeline Operating asset acquisitions post 31 December 2018 Initial Total Initial Properties Number Yield on cost lease term cost ELC 3 $13m 6.8% 20 years Healthcare 3 $24m 6.0% 15 ye
Slide 10: Strategic rationale
Strategic rationale PAGE 10 Acquisitions further enhance the defensive characteristics of Arena’s existing portfolio • Strategic importance to the operations of the • Security of income through long term leases tenant • Triple net lease structures Well located • Supported by fundamental demand d
Slide 11: ELC industry update
ELC industry update PAGE 11 Industry characterised by fundamental demand drivers and supportive Government policy LDC participation rate 0-4 years2 Female workforce participation rate3 • Increased long day care (LDC) 48% 65% participation rate 46% Strong 44% 60% • Increased female workforce 42% fu
Slide 12: Equity raising overview
Equity raising overview PAGE 12 $50 million fully underwritten Institutional Placement and non-underwritten SPP to raise up to $5 million1 • Fully underwritten Institutional Placement to raise $50 million Institutional • Institutional Placement issue price of $2.67 per Placement Security Placement o
Slide 13: Equity raising overview (continued)
Equity raising overview (continued) PAGE 13 Sources and uses of funds Pro Forma Balance Sheet Sources of funds1 $ million Acquisitions and Institutional Placement 50 Institutional 31 Dec 18 31 Dec 18 Placement1 Pro Forma Existing debt facilities 13 ($ million) ($ million) ($ million) Total Sources 6
Slide 14: Indicative timetable
Indicative timetable PAGE 14 Event Date Trading halt and announcement of Equity Raising Tuesday 21 May 2019 Institutional Placement Institutional Placement bookbuild Tuesday 21 May 2019 Announcement of outcome of Institutional Placement Wednesday 22 May 2019 Trading halt lifted Wednesday 22 May 2019
Slide 15: Conclusion and outlook
Conclusion and outlook PAGE 15 Accretive Acquisitions and balance sheet strengthened to fund additional growth Acquisitions and Equity Raising Acquisitions exhibit the following attractive investment characteristics; • Well located assets with strategic importance to the operation of the tenant •
Slide 16: Arena strategically well positioned
Arena strategically well positioned PAGE 16 High level of long term contracted earnings with growth prospects Quality portfolio with annual Predictable rent reviews and long WALE income stream Population growing, Debt capacity Supportive government policy focused to fund new Active capital Arena’s i
Slide 17: Portfolio Update / Appendix A
PAGE PAGE PAGE 179 17 Portfolio PortfolioUpdate Update Rob de Vos, Head of Property Rob de Vos, Head of Property Portfolio AppendixUpdate A Rob de Vos, Head of Property Key Risks Arena REIT / Acquisitions and Equity Raising Presentation / www.arena.com.au
Slide 18: Key risks
Key risks PAGE 18 Investors should carefully consider the risk factors described below. If you require (e) Alternative use risk (continued) further information regarding the appropriateness or potential risks of investing in expenditure and rezoning to be suitable for other commercial purposes. Aren
Slide 19: Key risks (continued)
Key risks (continued) PAGE 19 (j) Fund-through development risks (continued) In addition, environmental laws impose penalties for environmental damage and There is a risk that delays or issues relating to the development of a site could delay contamination which can be material in size. Exposure to
Slide 20: Key risks (continued)
Key risks (continued) PAGE 20 (s) Dependency on key staff (e) Funding The specialised nature of Arena REIT’s asset portfolio requires a manager with Arena REIT’s ability to raise funds from either debt or equity sources in the future extensive experience in the childcare and healthcare sectors. The
Slide 21: Appendix B: International Offer Restrictions
PAGE PAGE21 21 Summary Outlook and outlook Appendix B International Offer Restrictions Arena REIT / Acquisitions and Equity Raising Presentation / www.arena.com.au
Slide 22: International Offer Restrictions
International Offer Restrictions PAGE 22 This document does not constitute an offer of new stapled securities ("New These resale restrictions may in some circumstances apply to resales of the New Securities") of Arena REIT in any jurisdiction in which it would be unlawful. In Securities outside Cana
Slide 23: International Offer Restrictions
International Offer Restrictions PAGE 23 The following is a summary of the statutory rights of rescission or to damages, or both, These rights are in addition to and not in derogation from any other right the purchaser may available to purchasers in Ontario. In Ontario, every purchaser of the New Se
Slide 24: International Offer Restrictions
International Offer Restrictions PAGE 24 No advertisement, invitation or document relating to the New Securities has been or will be Singapore issued, or has been or will be in the possession of any person for the purpose of issue, in Hong This document has not been registered as a prospectus with t
Slide 25: Questions / Appendix C Glossary
PAGE PAGE25 25 Summary and outlook Questions Questions Appendix C Glossary Arena REIT / Acquisitions and Equity Raising Presentation / www.arena.com.au
Slide 26: Glossary
Glossary PAGE 26 Acquisitions The acquisitions outlined in this presentation Arena Arena REIT comprising Arena REIT Limited (ACN 602 365 186), Arena REIT Management Limited (ACN 600 069 761 AFSL No. 465754) as responsible entity of Arena REIT No.1 (ARSN 106 891 641) and Arena REIT No.2 (ARSN 101 067