360 Capital Reit · ASX:TOT
360 Capital Reit — FY2020 Earnings Presentation
24 slides from 360 Capital Reit's earnings presentation, Sep 1, 2020
Slide 1: FY20 Results Presentation
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 360 Capital REIT (ASX:TOT) FY20 Results Presentation 31 August 2020
Slide 2: Disclaimer
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Disclaimer CREDIT This presentation has been prepared by 360 Capital FM Limited (ACN 090 664 396) as responsible 360 Capital FM Limited and its related bodies corporate and other affiliates and their entity for 360 Capital Active REIT (ARSN 602 303 613) and 3
Slide 3: Table of contents
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Table of contents CREDIT Section # Slide # 1 FY20 highlights 4 2 Value proposition 5 3 Distribution history 6 4 Key financial results 7 5 Remaining loan portfolio 8 6 Real estate equity portfolio 9 7 Velocity Property Group (ASX: VP7) 10 8 Refinement of inves
Slide 4: FY20 highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 1. FY20 highlights CREDIT • Renamed 360 Capital Total Return Fund to 360 Capital REIT (“TOT”) >$90m CASH5 • Completed merger with URB Investments (“URB”), increasing the gross assets of TOT from $103.4m1 to $161.7m2 • Completed institutional placement of $10.
Slide 5: Value proposition
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 2. Value proposition CREDIT Currently trading at a -22% discount to NTA despite the majority of assets being cash and debt investments -22% DISCOUNT to NTA Note: Financial figures as at 24 August 2020 (unaudited) unless otherwise stated. Figures calculated ba
Slide 6: Distribution history
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 3. Distribution history CREDIT 5-years distribution history, averaging 9.8cps through investments in debt and equity 14.0 5-year average of 9.8cps p.a. 12.0 10.0 Cents per Security 8.0 6.0 12.0 10.5 9.0 9.0 4.0 8.5 2.0 2.8 0.0 FY15 FY16 FY17 FY18 FY19 FY20 De
Slide 7: Key financial results
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 4. Key financial results CREDIT Financial results overview As at 30 June 2020, TOT had a cash 30-Jun-20 30-Jun-19 Change Change $78.5m balance of $78.5m Balance sheet summary ($m) ($m) ($m) (%) Cash balance Total Assets 161.7 86.7 75.0 87% Total Liabilties 4.
Slide 8: Remaining loan portfolio
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 5. Remaining loan portfolio CREDIT Cash advance senior Progressively drawn senior Corporate loan note Medium density complex comprising 16 apartments Medium density complex comprising 109 waterfront, Loan to Velocity Property Group (ASX:VP7) to and two (2) to
Slide 9: Real estate equity portfolio
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 6. Real estate equity portfolio CREDIT 510 – 536 High St, Penrith NSW Gladesville apartments HomeHQ Artarmon Large format retail center which is currently 23 apartments acquired in September 2019 for Shopping center located on High Street in Penrith undergoin
Slide 10: Velocity Property Group (ASX: VP7)
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 7. Velocity Property Group (ASX: VP7) CREDIT • TOT/TGP JV made a 19.9% equity investment in VP7, the funds were utilized to reduce corporate debt and provide working capital • Despite the impact of COVID-19, VP7 has recently had 12 settlements (c. $14.8m gros
Slide 11: Refinement of investment strategy
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 8. Refinement of investment strategy CREDIT Rationale for refining investment strategy: Track Record of Investing across debt and equity delivering outsized returns TOT invested in debt Forward looking equity focus (avg. 15% IRR) 1. Stage of the cycle • Valua
Slide 12: Established, long term track record of corporate actions
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 9. Established, long term track record of corporate actions CREDIT Established 360 Capital 2006 $10.5m $9.0m $12.5m $5.5m $2.0m $30.0m $26.9m $310m portfolio $26m convertible Acquisition and disposal ($1.1bn FUM) Sale of 78% of 360 Capital note issue Sale of
Slide 13: Forward looking business plan
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 10. Forward looking business plan CREDIT Refinement of Investment Strategy • Unitholder approval of strategy – February 2020 • Expansion of geographies to include New Zealand • Market volatility catalyst to shift focus to real estate equity investing Platform
Slide 14: Outlook and guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 11. Outlook and guidance CREDIT Outlook and focus • Focus on deploying available balance sheet capacity including working with capital partners • Potential deterioration of economic and real estate fundamentals provides opportunistic investors like TOT with a
Slide 15: Appendix 1: Financials
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 1: Financials
Slide 16: FY20 Balance sheet activity
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT FY20 Balance sheet activity Summary of FY20 activity $63.1m $11.6m $20.0m $0m Loans repaid1 Gladesville apartments sold Equities sold2 Borrowings FY20 balance sheet activity 3 3 1 Includes principle and capitalised interest 2 As per the “Financial asse
Slide 17: Financial results
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Financial results CREDIT Balance sheet As at 30 June 2020, TOT had a cash 30-Jun-20 30-Jun-19 Change Change $78.5m balance of $78.5m ($m) ($m) ($m) (%) Cash balance Cash 78.5 42.3 36.2 Receivables 0.6 0.1 0.5 Loans receivable 42.4 38.9 3.6 AMF Finance Joint V
Slide 18: Financial results
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Financial results CREDIT FY20 FY19 Change Change Finance revenue of $7.5m, a –13.8% $7.5m decrease from FY19 due to TOT Finance revenue Distribution income ($m) 7.5 0.8 ($m) 8.7 0.0 ($m) (1.2) 0.8 (%) Finance revenue choosing not to write new loans in the Net
Slide 19: Appendix 2: Turnaround Track Record
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 2: Turnaround Track Record Draft. Confidential. 360 Capital Group, 2019. All rights reserved.
Slide 20: Turn Around Case Study: Capital Industrial Fund
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Turn Around Case Study: 360 Capital Industrial Fund CREDIT (ASX:TIX, now ASX:CIP) • Acquired as part of Becton Fund’s management acquisition in 2010 23% IRR1 • Listed on ASX in 2012 and recapitalised (1st A-REIT IPO post Co-Investment IRR GFC) • Grew portfoli
Slide 21: Turn Around Case Study: Capital Office Fund
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Turn Around Case Study: 360 Capital Office Fund CREDIT (ASX:TOF, now merged with ASX:COF) • Acquired as part of Becton Fund’s management acquisition in 2010 17% IRR1 • Active portfolio management Co-Investment IRR • Sale of A$250m of assets, • Acquisition of
Slide 22: Appendix 3: M&A / Corporate Track Record
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 3: M&A / Corporate Track Record Draft. Confidential. 360 Capital Group, 2019. All rights reserved.
Slide 23: Takeover: Asia Pacific Data Centre Group
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Takeover: Asia Pacific Data Centre Group (ASX: AJD) CREDIT AJD Run Sheet May-17 TGP bought 19.9% stake ($35.8m) for $1.57 per unit. 28-Jun-17 TGP calls meeting to replace the Responsible Entity of AJD. 18-Jul-17 NEXTDC Limited (NXT) acquires 14.1% stake in AJ
Slide 24: Takeover: Australian Industrial REIT
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Takeover: Australian Industrial REIT (ASX: ANI) CREDIT ANI Run Sheet TGP approached ANI management with proposal to buy management rights A$330m Nov-14 (proposal was rejected by ANI) Gross Assets Dec-14 TGP bought 12.9% stake ($27m) for $2.12 per unit TIX mad