360 Capital Reit · ASX:TOT
360 Capital Reit — FY2022 Earnings Presentation
27 slides from 360 Capital Reit's earnings presentation, Aug 24, 2022
Slide 1: FY22 Results Presentation
FY22 Results Presentation 24 August 2022 P.1
Slide 2: Table of Contents
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Table of Contents CREDIT 1 Snapshot and Key Highlights 3 2 Portfolio Overview 7 3 Financials 16 4 TOT’s Tax Benefit 20 5 Capital Management 22 6 Key Focus and Guidance 24 P.2
Slide 3: 1. Snapshot and key highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 1. Snapshot and key highlights P.3
Slide 4: Value Proposition
Value Proposition $257.5m1 Modern portfolio - with an average age of 2 years5, minimal capex Modern Portfolio 25% Aligned manager - with 16-year real estate track record Manager Co-Investment 7.8 year WALE Secure, growing income - 85.2% government and publicly listed Secure, recurring income2 tenant
Slide 5: FY22 Financial Highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY FY22 Financial Highlights CREDIT $1.171 25.3cps ~30.0cps Proforma NTA FY22 Potential future Operating earnings franked 321% increase on distributions earnings guidance2 24.0cps 6.0cps $27.6m3 FY22 FY22 distribution Non-core asset sales statutory earnings as p
Slide 6: FY22 Operational Highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY FY22 Operational Highlights CREDIT Executed on Irongate Group transaction, delivering TOT a 32% pre- 32% tax IRR and $41.7m in operating gain on TOT’s $123.2m investment pre-tax IRR on IAP Transaction Post period disposed of its 50% interest in PMG Funds, del
Slide 7: 2. Portfolio Overview
2. Portfolio Overview P.7
Slide 8: Portfolio
Portfolio Lease Expiry Profile (by income)1,3 Top 10 Tenants1 100% Commonwealth Government 31.9% 90% Dentsu 19.5% 80% Michael Hill 12.2% 70% 65.2% Monash IVF 11.5% 60% Kane 6.6% 50% TLA 5.8% 40% Alfasi Corporation 4.6% 30% SRC Australia 4.4% 20% 12.9% 8.9% 8.2% Mobilia 3.0% 10% 4.8% 0.0% 0.0% 0.0% 0
Slide 9: Diversified, secure income, contracted rent increases
Diversified, secure income, contracted rent increases Tenant Type Composition1,2 Initially East Coast Geography – Focus on Major Markets Public 48.9% 85.2% Government 36.3% Gov. or publicly listed tenants Private 14.8% Rent Reviews1,2 Brisbane (15.8%)3 34 Southgate Ave, Cannon Hill Fixed 95.6% 3.0%
Slide 10: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Summary Metrics Valuation1: $135.0m (50%) NABERS Rating: 5.0 stars(target) NLA3: 19,805 sqm Site Area: 3,026 sqm Occupancy4: 100.0% WALE2: 7.1 years Cap Rate: 4.50% $/Sqm3: $13,633 Overview Ownership • 510 Church Street is a brand-new A-grade office building Ownership
Slide 11: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Top 5 Tenants2,3,4 Dentsu 23.6% Commonwealth Gov 21.2% Rent Guarantee 17.0% Monash IVF 13.9% Kane 8.0% Major Tenants Lease Expiry Profile2,3,4 % total 100% NLA1 Review Expiry Option to Tenant Gross 90% (sqm) type date extend Rent 80% Dentsu 23.6% 4,668 Fixed Jul 29 2x
Slide 12: 34 Southgate Avenue, Cannon Hill QLD
34 Southgate Avenue, Cannon Hill QLD Summary Metrics Purchase Price2: $40.8m NABERS Rating: 4.5 stars(target) NLA: 3,585 sqm Site Area: 2,598 sqm Occupancy: 100.0% WALE1: 10.0 years Cap Rate: 4.50% $/Sqm: $11,381 Overview Ownership • 34 Southgate Avenue is a brand-new A-Grade office Ownership Intere
Slide 13: 34 Southgate Avenue, Cannon Hill QLD
34 Southgate Avenue, Cannon Hill QLD Top 5 Tenants1 Michael Hill 100.0% Major Tenants Lease Expiry Profile % total 100.0% NLA Review Expiry Option to 100% Tenant Gross (sqm) type date extend 90% Rent 80% Michael Hill 100.0% 3,585 Fixed July 32 2x5 70% 60% 50% Total 100.0% 3,585 40% 30% 20% 10% 0.0%
Slide 14: 38 Sydney Avenue, Canberra ACT
38 Sydney Avenue, Canberra ACT Summary Metrics Valuation: $81.7m NABERS rating: 4.5 stars NLA: 8,885 sqm Site Area: 3,269 sqm Occupancy: 100.0%1 WALE: 9.0 years2 Cap Rate: 5.00% $/Sqm: $9,195 Overview Ownership • The Property comprises a modern four (4) storey A-Grade Ownership Interest 100% commerc
Slide 15: 38 Sydney Avenue, Canberra ACT
38 Sydney Avenue, Canberra ACT Top 5 Tenants2 Commonwealth Gov 55.7% Rent Guarantee 25.2% SRC 17.2% Zamlod 2.0% Major Tenants Lease Expiry Profile % total 100% NLA Review Expiry Option to Tenant Gross 90% (sqm) type date extend Rent 80% 72.9% Commonwealth Gov 55.7% 1,541 Fixed Jan 32 5 70% 60% > Fix
Slide 16: 3. Financials
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT CREDIT 3. Financials P.16
Slide 17: FY22 Balance sheet highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY FY22 Balance sheet highlights CREDIT 30-Jun-22 30-Jun-21 Change Change ($m) ($m) ($m) (%) Cash 10.8 15.6 (4.8) As at 30 June 2022, TOT had $201.8m of total $201.8m assets, an increase of $33.5m or 19.9% over the 12- Joint ventures 18.9 19.8 (0.9) of total ass
Slide 18: FY22 Profit and loss highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY FY22 Profit and loss highlights CREDIT FY22 FY21 Change Change ($m) ($m) ($m) (%) Distribution income 8.0 3.7 4.3 Distribution revenue of $8.0m, a $4.3m increase from Sale of inventory 3.0 10.1 (7.0) $8.0m FY21 due to capital being redeployed into Irongate Ne
Slide 19: Simplified Proforma Balance Sheet
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Proforma1 Balance Sheet Post Sale of PMG and Acquisition of Portfolio CREDIT 30-Jun-22 IAP Sale PMG Sale Proforma Acquisitions Proforma ($m) ($m) ($m) ($m) ($m) ($m) TOT will acquire a $257.5m portfolio of investment $257.5m properties as part of the Charter
Slide 20: 4. TOT's Tax Benefits
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 4. TOT’s Tax Benefits P.20
Slide 21: TOT's Tax Benefits
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY TOT’s Tax Benefits CREDIT Traditional AREIT ASX:TOT Approximately 10.0cps franking credit 8.0cps eqv.1 Franking balance available to Securityholders equivalent to approximately 30.0cps fully Credits1,2 franked distributions - equiv. to 5 years Tax Benefit 6.0
Slide 22: 5. Capital Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 5. Capital Management
Slide 23: Capital Management
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Capital Management CREDIT Debt facility summary Debt terms • TOT has entered into the following debt facility: • Term: 3-years $105m • Facility Limit: $105m Facility limit • Expiring: FY26 Interest rate strategy • TOT’s debt is currently unhedged and we have
Slide 24: 6. Key Focus and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT CREDIT 6. Key Focus and Guidance P.24
Slide 25: Key Focus and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Key Focus and Guidance CREDIT Complete leasing of rental guarantees at: Leasing • 510 Church Street, Cremorne; and • 38 Sydney Ave, ACT Scale Look for opportunities to increase size and scale of TOT • Continue to market TOT to new investors Trading Price • Ga
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by 360 Capital FM Limited (ACN 090 664 396) (Responsible Entity) as responsible entity for 360 Capital Active REIT (ARSN 602 303 613) and 360 Capital Passive REIT (ARSN 602 304 432), together 360 Capital REIT (‘TOT’ or the ‘Fund’). This material is a su
Slide 27: REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT James Storey Chief Executive Officer +61 2 8405 8860 James,storey@360capital.com.au www.360capital.com.au Level 37, 1 Macquarie Pl, Sydney NSW 2000