Homeco Daily Needs Reit · ASX:HDN
Homeco Daily Needs Reit — Merger or Acquisition (April 2021)
43 slides from Homeco Daily Needs Reit's merger presentation, Apr 19, 2021
Slide 1: ASX Release: Acquisitions and Equity Raising Presentation
Managed by HMC Funds Management Limited (ACN 105 078 635; AFSL 237257) as responsible entity of the HomeCo Daily Needs REIT (ARSN 645 086 620) ASX RELEASE 19 April 2021 ACQUISITIONS AND EQUITY RAISING PRESENTATION HomeCo Daily Needs REIT (ASX: HDN) provides the attached Acquisitions and Equity Raisi
Slide 2: Acquisitions and equity raising presentation
Acquisitions and equity raising presentation 19 April 2021 NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 3: Important Notices and Disclaimer
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Important Notices and Disclaimer Daily DailyNeeds Needs REIT REIT This presentation (Presentation) has been prepared by HMC Funds Management Limited (ACN 105 078 635, AFSL 237257) (HF
Slide 4: Important Notices and Disclaimer
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Important Notices and Disclaimer Daily DailyNeeds Needs REIT REIT International restrictions This Presentation may not be released to US wire services or distributed in the United Sta
Slide 5: Important Notices and Disclaimer
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Important Notices and Disclaimer Daily DailyNeeds Needs REIT REIT There can be no assurance that actual outcomes will not differ materially from these forward looking statements. A nu
Slide 6: Important Notices and Disclaimer
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Important Notices and Disclaimer Daily DailyNeeds Needs REIT REIT The Lead Manager and its affiliates are full service financial institutions engaged in various activities, which may
Slide 7: Transaction overview
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Transaction overview Daily Needs REIT Strong FFO accretion, reduced gearing and enhanced scale and diversification Acquisitions HMC Funds Management Limited, as responsible entity of
Slide 8: Transaction overview
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Transaction overview Daily Needs REIT Attractive issue price, strong alignment with HMC Equity raise ▪ HDN is undertaking a $265 million underwritten accelerated non-renounceable 1 fo
Slide 9: Strategic rationale for transaction
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Strategic rationale for transaction Daily Needs REIT 1 ✓ All acquisitions consistent with strategy at IPO ✓ Cash collection of 99%1 across LFR portfolio being acquired High quality ✓
Slide 10: Attractive issue price and structure
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Attractive issue price and structure Daily Needs REIT Implied Revaluation ~6.7% 4Q FY21 $1.295 Issue Price 1 for 20 Bonus Unit uplift on LFR Portfolio Accrued Distribution = discount1
Slide 11: Acquisition of Armstrong Creek Town Centre (VIC)
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Acquisition of Armstrong Creek Town Centre (VIC) Daily Needs REIT New neighbourhood centre anchored by Coles acquired at 6.0% cap rate Summary Tenant mix3 ▪ Armstrong Creek Town Centr
Slide 12: Acquisition of HomeCo LFR Portfolio
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Acquisition of HomeCo LFR Portfolio Daily Needs REIT ▪ HDN has conditionally agreed to acquire a portfolio of 7 LFR properties from Home Consortium ̶ Purchase price: $266.4 million1 ̶
Slide 13: Balance sheet capacity for further growth
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Balance sheet capacity for further growth Daily Needs REIT Post-transaction HDN’s gearing is expected to reduce which, paired with potential portfolio revaluations, is expected to pro
Slide 14: Continued focus on accretive earnings growth
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Continued focus on accretive earnings growth Daily Needs REIT Minimum 24% forecast FFO/unit growth from FY21 to FY22 with potential for further growth as balance sheet capacity is dep
Slide 15: Sources and uses
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Sources and uses Daily Needs REIT Sources of funds $m Entitlement Offer 265 Debt 85 Total sources 350 HomeCo Box Hill, VIC Uses of funds $m Acquisitions 322 Stamp duty 18 Transaction
Slide 16: Financial impacts
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Financial impacts Daily Needs REIT FFO outlook ▪ Acquisitions and Entitlement Offer are anticipated to be accretive to FY22 FFO/unit and result in FY22 FFO guidance of at least 8.3 cp
Slide 17: Offer terms, timing and pricing
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Offer terms, timing and pricing Daily Needs REIT Offer structure ▪ $265 million underwritten accelerated non-renounceable 1 for 2.36 entitlement offer to fund the acquisitions and ass
Slide 18: Bonus Unit
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Bonus Unit Daily Needs REIT Eligible Unitholders who are issued with New Units and investors issued with shortfall units will also be entitled to receive, without any further action,
Slide 19: Indicative Timetable
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Indicative Timetable Daily Needs REIT Event Date Trading halt and announcement of the Entitlement Offer Monday, 19 April 2021 Institutional Entitlement Offer Bookbuild Monday, 19 Apri
Slide 20: LFR Portfolio property acquisition approvals
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx LFR Portfolio property acquisition approvals Daily Needs REIT Approval overview ▪ 7 properties are being acquired from HMC for total cash consideration of $266.4 million ▪ Completion
Slide 21: Further Information
Further Information Daily Needs REIT
Slide 22: Portfolio impacts
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Portfolio impacts Daily Needs REIT HDN tenancy composition pre-transaction (by income)1 HDN tenancy composition post-transaction (by income)1 20% Non-specialty Neighbourhood 20% Non-s
Slide 23: Portfolio impacts
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Portfolio impacts Daily Needs REIT HDN Pro forma HDN Acquisitions (31-Dec-20) (31-Dec-20) Portfolio valuation $978m1 $322m $1,300m2 Portfolio WACR3 5.91% 6.62% 6.09% Portfolio WALE4 8
Slide 24: Pro-forma Balance Sheet
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Pro-forma Balance Sheet Daily Needs REIT Expected Armstrong Creek Dec-20 Dec-20 LFR Portfolio revaluation on LFR Equity Raising Town Centre Pro-forma Portfolio Cash and cash equivalen
Slide 25: Asset summary
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Asset summary Daily Needs REIT HomeCo Marsden Park HomeCo Box Hill HomeCo South Morang HomeCo Upper Coomera State NSW State VIC State VIC State QLD Ind. value ($m) 57.3 Ind. value ($m
Slide 26: Appendix A: Risks
Appendix A: Risks Daily Needs REIT
Slide 27: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT This section discusses some of the key risks associated with an investment in HDN. A number of risks and uncertainties may adversely affect the operating an
Slide 28: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Analysis of the Acquisitions by HFML HFML has undertaken financial, business and other analyses of the properties the subject of the Acquisitions in order t
Slide 29: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT There are also other changes in the domestic and global macroeconomic environment associated with the events relating to COVID-19 that are beyond the contro
Slide 30: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Retail property sector concentration HDN's portfolio is principally comprised of retail properties and is therefore exposed to the retail property sector. A
Slide 31: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Model portfolio While the portfolio has been constructed, and the Acquisitions undertaken, with reference to HDN's model portfolio, the actual composition o
Slide 32: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT • ensuring that it has lease commitments (in the form of agreements for lease) in respect of at least 50% of the GLA before commencing development; and • ba
Slide 33: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Insurance risk HDN maintains appropriate insurance coverage in respect of its portfolio where insurance coverage is available on commercial terms and at acc
Slide 34: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Retail tenancies legislation Retail tenancies legislation in force in each Australian State and Territory regulates the terms on which leases and licences a
Slide 35: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Impact of climate change Climate change presents a potentially material risk to HDN. The increasing severity of acute weather events (such as heatwaves, cyc
Slide 36: Appendix B: Summary of Underwriting Arrangements
Appendix B: Summary of Underwriting Arrangements Daily Needs REIT
Slide 37: Summary of Underwriting Arrangements
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Summary of Underwriting Arrangements Daily Needs REIT Goldman Sachs Australia Pty Ltd is acting as sole Lead Manager and underwriter of the Offer (Lead Manager), with the exception of
Slide 38: Summary of Underwriting Arrangements
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Summary of Underwriting Arrangements Daily Needs REIT o) there occurs a new circumstance that arises after the ASX Materials were given to the ASX that would have been required to be
Slide 39: Appendix C: Foreign Offer Restrictions
Appendix C: Foreign Offer Restrictions Daily Needs REIT
Slide 40: Foreign Offer Restrictions
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Foreign Offer Restrictions Daily Needs REIT International Offer Restrictions This document does not constitute an offer of new ordinary Units ("New Units") of HDN in any jurisdiction
Slide 41: Foreign Offer Restrictions
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Foreign Offer Restrictions Daily Needs REIT Singapore This document has not been registered as a prospectus with the Monetary Authority of Singapore ("MAS") and, accordingly, statutor
Slide 42: Appendix D: Summary of HMC sub-underwrite
Appendix D: Summary of HMC sub-underwrite Daily Needs REIT
Slide 43: Summary of HMC sub-underwrite
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Summary of HMC sub-underwrite Daily Needs REIT • Home Consortium Developments Limited (HCDL), an entity within the Home Consortium stapled group, has committed to sub-underwrite $26.7
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