360 Capital Reit · ASX:TOT
360 Capital Reit — 360 Capital Total Return Fund — FY2016 Earnings Presentation
13 slides from 360 Capital Reit's earnings presentation, Aug 24, 2016
Slide 1: 2016 Annual Results Presentation
For personal use only 2016 Annual Results Presentation TOTAL RETURN FUND ASX: TOT 24 August 2016 360 Capital Investment Management Limited (ACN 133 363 185) 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 6
Slide 2: Table of contents
Table of contents For personal use only 2016 Annual Results presentation 1 At a glance 2 Key achievements 3 Profit & loss; balance sheet composition 4 Capital management 5 TOT’s IDR investment 6 Key focuses and outlook 2
Slide 3: At a glance
1 At a glance For personal use only $38.75m 15.8% 5.6% 22.7% Total return at Total return based Of units bought Investment in IDR on ASX trading Fund level back in FY16 price $1.33 8.5cps 16.4cps $1.15 ASX closing price NTA per Security Distributions Statutory Earnings (highly transparent) 3
Slide 4: Key achievements
2 Key achievements For personal use only • In line with strategy, the Fund successfully completed the sale of the Frenchs Forest properties for $26.0 m • Increased investment stake in Industria REIT (ASX:IDR) to 14.7% • Simplified the capital structure of the Fund by redeeming A Class units • Fund a
Slide 5: Profit & loss analysis
3 Profit & loss analysis For personal use only FY16 Cents per Operating profit FY16 distributions ($’000) Security Net property income 865 September quarter 2.81 Distribution income 2,732 December quarter 1.50 Finance & other revenue 201 March quarter 1.50 Total revenue 3,789 June quarter 1.50 Opera
Slide 6: Balance sheet composition
3 Balance sheet composition For personal use only Balance sheet composition 30 Jun 16 30 Jun 15 Assets as at 30 June 2016 ($’000) ($’000) Cash 1,094 12,024 Other Cash $1.1m IDR investment 38,751 11,227 Assets $1.5m Direct property - 26,000 Other assets 1,488 621 Total assets 41,333 49,872 Payables 7
Slide 7: Capital management
4 Capital management For personal use only Inherent value • TOT currently trading at $1.17 versus a highly liquid asset based NTA of $1.33 per Security as at 30 June 2016 • TOT’s major asset is IDR - using IDR’s current trading price of $2.22, TOT’s NTA today would be $1.38 per Security • TOT curren
Slide 8: TOT's IDR investment
5 TOT’s IDR investment For personal use only Strategic stake in Industria REIT (ASX:IDR) • TOT has accumulated a $38.8m investment in IDR (a 14.7% ownership stake holding 18,107,804 IDR Units) • TOT spent $36.5m accumulating stake • Average entry price of $2.02 per IDR Unit verses $2.14 as at 30 Jun
Slide 9: TOT is a proxy for IDR
5 TOT is a proxy for IDR For personal use only • TOT is trading at a 12.0% discount to its 30 June 2016 NTA per Security of $1.33 • IDR has rallied since 30 June 2016 - TOT now further undervalued • Given recent AREIT pricing (including IDR), 360 Capital is considering its options in relation to its
Slide 10: Key focuses and outlook
6 Key focuses and outlook For personal use only Outlook • Like all our investments, 360 Capital’s approach to TOT is to remain patient and disciplined • Since TOT’s IPO we have successfully recycled assets and deployed the cash into relatively stable investments. • Today – Markets are volatile which
Slide 11: Key focuses and outlook
6 Key focuses and outlook For personal use only Key focuses in FY17 • Maximise the value of IDR stake • Restore value to Securityholders by closing the gap between trading price and NTA per Security • 360 Capital Group looking to commit further capital to TOT in FY17 (alongside other investors) as o
Slide 12: Thank you
For personal use only Thank you
Slide 13: Disclaimer
Disclaimer For personal use only This presentation has been prepared by 360 Capital Investment Management Limited (ACN 133 363 185, AFSL 340304) as responsible entity of the 360 Capital Total Return Fund (comprising 360 Capital Total Return Passive Fund ARSN 602 304 432 and 360 Capital Total Return
360 Capital Total Return Fund — FY2016 Earnings Presentation on 6ix