Arena Reit · ASX:ARF

Arena Reit — Investor Presentation (October 2015)

16 slides from Arena Reit's investor presentation, Oct 29, 2015

  1. Slide 1: Arena REIT – Delivering Value for Investors

    ASX Announcement For personal use only 29 October 2015 Arena REIT – Delivering Value for Investors The attached material is being used for investor presentations prior to the Arena REIT AGM, scheduled for 19 November 2015. Media enquiries: Investor enquiries: Bryce Mitchelson 1800 008 494 (Freecall

  2. Slide 2: Arena REIT: Delivering value for investors

    For personal use only Arena REIT ARF.ASX Delivering value for investors October 2015

  3. Slide 3: Agenda

    Agenda For personal use only Page Internalised 1 Focused strategy 3 management structure 2 Strong track record 4 3 Strong underlying sector demand 5 Delivering 4 predictable earnings Quality tenant covenants 6 with growth 5 Typical lease structured for predictable income with growth 7 6 Benefits of

  4. Slide 4: Focused strategy

    1 Focused strategy Owning long leased assets supported by childcare and healthcare sectors For personal use only Sector diversification (by income) As at 30 June Medical Childcare Development 2015 centres centres sites Total Healthcare 18% No of properties 7 179 11 197 Value (million) $67 $323 $30 $

  5. Slide 5: Strong track record

    2 Strong track record Outperformance since IPO FY16 For personal use only Performance metric FY13 FY14 FY15 (guidance) Operating Profit per security 8.20¢ 8.85¢ 10.20¢ Distributions per security 8.00¢ 8.75¢ (+9.4%) 10.00¢ (+14.3%) 10.70¢ (+7.0%) Net asset value per security $1.02 $1.13 $1.33 ASX pri

  6. Slide 6: Strong underlying sector demand

    3 Strong underlying sector demand Favourable childcare and healthcare macro fundamentals For personal use only Childcare Healthcare • Demand for long day care dependent on several • Ageing and growing population driving factors (eg: cost, availability, female workforce demand for medical services. 1

  7. Slide 7: Quality tenant covenants

    4 Quality tenant covenants Delivering predictable earnings For personal use only Portfolio Tenant %^ Covenant Australia's largest childcare operator, Goodstart operates over 640 centres around the country. In FY15 Goodstart reported $270 m in gross assets, an Goodstart Early 46% underlying surplus o

  8. Slide 8: Typical lease structured for predictable income with growth

    5 Typical lease structured for predictable income with growth Typical Arena REIT lease For personal use only Childcare centre assets • Relatively long lease terms on commencement (typically 15 years) with two options to extend for 5 years. • 5 years’ notice period to extend leases for 5 years or ter

  9. Slide 9: Benefits of internalised management structure

    6 Benefits of internalised management structure Enhanced alignment and direct accountability to investors For personal use only • Total current management costs and MER at 0.6% of total assets, lower than externally managed competitors. • No fund or asset management fees charged on: o valuation incr

  10. Slide 10: What is driving earnings growth?

    7 What is driving earnings growth? FY16 distribution guidance of 10.7¢1 (7% annual increase) For personal use only Contracted rental growth • FY15 3.4% like-for-like annual rent growth (average market review increase of 6%). • Average rent per childcare place is $1,685 (compared to new rents agreed

  11. Slide 11: What is driving earnings growth? continued

    7 What is driving earnings growth? continued For personal use only Internalised management structure • Enhanced alignment with investors, lower management cost ratio and no fee leakage. • Provides operating leverage and enhanced earnings growth potential. Long leases with high tenant retention • No

  12. Slide 12: Market evidence suggests NTA upside from asset revaluations

    8 Market evidence suggests NTA upside from asset revaluations NAV $1.33 (up 18% in FY15) For personal use only Number Value Passing Valuations as at 30 June 2015 of assets ($m) Yield • Sales evidence indicates scope for Childcare independent valuations 18 30 7.9% further revaluation and NTA upside i

  13. Slide 13: Upcoming AGM – November, Melbourne

    9 Upcoming AGM – 19 November, Melbourne Voting resolutions For personal use only • Arena REIT will hold its AGM on 19 November 2015 (10.00 am AEDT) at the Sofitel Melbourne. • Proxy / online voting closes 10.00am (AEDT) 17 November 2015. • The Resolutions to be voted on are as follows: Resolution Vo

  14. Slide 14: Contacts

    Contacts For personal use only Bryce Mitchelson • Managing Director • 03 9093 9120 • bryce.mitchelson@arena.com.au www.arena.com.au Arena REIT (ASX Code: ARF) | arena.com.au 13

  15. Slide 15: Important notice

    Important notice This presentation has been prepared by Arena REIT (ARF) comprising Arena REIT Limited (ACN 602 365 186), Arena REIT Management Limited (ACN 600 For personal use only 069 761 AFSL No. 465754) as responsible entity of Arena REIT No.1 (ARSN 106 891 641) and Arena REIT No.2 (ARSN 101 06

  16. Slide 16: For personal use only

    For personal use only

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