360 Capital Reit · ASX:TOT
360 Capital Reit — Investor Presentation (February 2024)
35 slides from 360 Capital Reit's investor presentation, Feb 14, 2024
Slide 1: 360 Capital REIT Entitlement Offer Presentation
360 Capital REIT (ASX:TOT) (comprising: 360 Capital Passive REIT (ARSN 602 304 432) and 360 Capital Active REIT (ARSN 602 303 613) Entitlement Offer Presentation 14 February 2024 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES P.1
Slide 2: Disclaimer
Disclaimer IMPORTAND NOTICES AND DISCLAIMER This presentation is dated 14 February 2024 and relates to a 0.8 for 1.0 non-underwritten, non-renounceable pro rata offer by 360 Capital REIT to Eligible Securityholders of New Securities to raise up to approximately $46.8m (Entitlement Offer). This prese
Slide 3: Disclaimer (continued)
Disclaimer IMPORTAND NOTICES AND DISCLAIMER CONTINUED FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements, guidance, forecasts, estimates , prospects, projections or statements in relation to future matters (‘Forward Statements’). Forward Statements can generally be i
Slide 4: Disclaimer (continued)
Disclaimer IMPORTAND NOTICES AND DISCLAIMER CONTINUED DISCLAIMER To the extent permitted by law, no member of the 360 Capital Group accepts any liability (including, without limitation, any liability arising from fault or negligence on the part of any of them) for any loss whatsoever arising from th
Slide 5: Table of contents
Table of contents 1 Executive summary 6 2 Portfolio overview 9 3 Entitlement Offer 18 4 Financials 21 Appendix A Key risks 28 Appendix B Glossary 33 P.5
Slide 6: 1. Executive summary
REAL ASSETS PRIVATE EQUITY CREDIT 1. Executive summary
Slide 7: Executive summary
Executive summary Portfolio highlights as at 31 December 23 Financial snapshot post raising • $227.5 million modern core portfolio with an average building age of 3.2 years1 • The portfolio is currently valued below replacement cost and is well located across eastern states of Australia Rebased Dist
Slide 8: Entitlement Offer summary
Entitlement Offer summary Offer Price $0.40 per Security Total Offer maximum amount $46.8 million Forecast Q4 24 DPS / distribution yield1 0.75 cents / 7.5% Forecast FY25 DPS / distribution yield1 3.0 cents / 7.5% Forecast franking of distributions FY24, FY25 100% fully franked Ranking for distribut
Slide 9: 2. Portfolio overview
2. Portfolio overview P.9
Slide 10: Portfolio overview
Portfolio overview “84.7% of the portfolio is leased to government and publicly listed tenants, diversified across industry segment and asset class” Portfolio occupancy1 Weighted average lease expiry1 Weighted average cap rate2 Gross assets 93.2% 7.0 years 5.33% $233.6m Portfolio diversification by
Slide 11: Leasing expiry profile
Leasing expiry profile Lease expiry profile (by income)1 Income and Review profile1 70% 65.5% CPI 6.9% 60% 15.3% 50% 40% 84.7% 42.9% 3.1% p.a. Gov. or publicly weighted avg. 30% listed tenants rent review 20% 13.1% 41.8% 10% 6.8% 7.7% 6.9% Fixed 93.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0% Vacant FY24 FY25 FY2
Slide 12: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Tenancy Profile Summary Metrics % Total NLA3 Review Expiry Option to Valuation1 $117.5m (50%) Tenant Gross (sqm) type date extend Independent Valuation Rent4 November 2023 Date Dentsu 23.6% 4,668 Fixed Jul 29 3 Ownership Interest 50% Commonwealth Govt. 21.8% 4,307 Fix
Slide 13: 34 Southgate Ave, Cannon Hill QLD
34 Southgate Ave, Cannon Hill QLD Tenancy Profile Summary Metrics % total Option Valuation $36.0m NLA Review Expiry Tenant Gross to Independent (sqm) type date June 2023 Rent1 extend Valuation Date Ownership Interest 100% Michael Hill 100.0% 3,585 Fixed Sept 32 2x5 Title Freehold NABERS Rating 5.0 s
Slide 14: 38 Sydney Ave, Forrest ACT
38 Sydney Ave, Forrest ACT Tenancy Profile Summary Metrics % total Option Valuation $74.0m NLA Review Expiry Tenant Gross to (sqm) type date Independent Valuation Rent1 extend June 2023 Date Commonwealth Ownership interest 100% 56.1% 4,857 Fixed Dec 34 5 Govt. Title3 Leasehold Rental Guarantee 23.7%
Slide 15: Home HQ, Artarmon NSW – non core asset
Home HQ, Artarmon NSW – non core asset Major Tenants Summary Metrics Valuation1 $3.8m Valuation Date Dec 23 Ownership Interest 4.52% Title2 Leasehold NABERS Rating 6 Stars GLA 22,987 sqm Site Area 1.6 Ha Occupancy3 92.3% Overview Lease expiry profile4 WALE3 3.6 years 100% Cap Rate 6.5% • Completed i
Slide 16: Leasing strategy
Leasing strategy 510 Church Street, Cremorne Speculative Suite Strategy – 510 Church Street, Cremorne • Market enquiry focused on fitted out space • Completed speculative fit out of Level 2 in October 2023 • Comprises two tenancies, being 1,332 Sqm and 1,250 Sqm in line with market demand • Remainin
Slide 17: FY24 ESG initiatives
FY24 ESG initiatives Current / Target Property FY24 Initiatives NABERS Rating Continue optimising building performance, expected to 510 Church Street, Cremorne, VIC 5.0 stars1 achieve a 5-star NABERS rating once the building has reached 100% occupancy Targeting 5-Star NABERS Rating across the portfo
Slide 18: 3. Entitlement Offer
3. Entitlement Offer
Slide 19: Details of the Entitlement Offer
Details of the Entitlement Offer • 0.8 for 1 pro-rata non-renounceable Entitlement Offer resulting in the issuance of up to 117.0 million New Securities to Eligible Securityholders, raising up to $46.8 million1 • The Entitlement Offer is only available to existing TOT Securityholders who are registe
Slide 20: Indicative timetable
Indicative timetable 1 Announcement of HY24 results and Entitlement Offer Wednesday, 14 February 2024 Ex date Friday, 16 February 2024 Record Date for the Entitlement Offer (7pm AEDT) Monday, 19 February 2024 Open of Offer and Entitlement Offer Booklet and personalised entitlement and acceptance for
Slide 21: 4. Financials
4. Financials
Slide 22: Source and application of proceeds
Source and application of proceeds • TOT is seeking to raise up to a maximum of $46.8 million to reduce borrowings • 0.8 for 1 non-underwritten, pro-rata, non-renounceable Entitlement Offer at an Offer price of $0.40 per New Security • As the Entitlement Offer is not underwritten and there is no abi
Slide 23: Proforma balance sheet metrics
Proforma balance sheet metrics 31 December Proforma post Proforma post Proforma post 31 December Balance sheet ($’000) 2023 proforma Entitlement Offer Entitlement Offer Entitlement Offer 2023 adj. for DRP1 35% 60% 100% Cash and cash equivalents 1,912 716 716 716 716 Other assets 455 455 455 455 455
Slide 24: Forecast operating income statement
Includes no rental income from vacancies. Once leased, Forecast operating income statement2 additional gross property income up to1.0 cps p.a 2H24 forecast Reduction in interest FY24 full year expense due to debt post capital FY25 forecast @ Forecast profit & loss ($’000) FY23 1H24 actuals forecast
Slide 25: Financial assumptions and control implications
Financial assumptions and control implications Key assumptions Control implication of Entitlement Offer Rental income has been forecast on existing leases • The majority securityholder, 360 Capital Group hold 43,156,825 Securities being and does not include income from current vacancies. 29.5% perce
Slide 26: Capital management
Capital management Interest rate strategy Debt facility summary • Interest rates appear to be at or close to their peak with global interest rates Debt terms forecast to trend down over the coming 24-months1 • TOT has entered into the following debt facility: • TOT is currently 100% floating enablin
Slide 27: Contact details
Contact details: Tony Pitt Executive Chairman +61 2 8405 8860 Tony.Pitt@360capital.com.au www.360capital.com.au James Storey Chief Executive Officer +61 2 8405 8860 James.Storey@360capital.com.au www.360capital.com.au Glenn Butterworth Chief Financial Officer +61 2 8405 8860 Glenn.Butterworth@360cap
Slide 28: Appendix A. Key risks
REAL ASSETS PRIVATE EQUITY CREDIT Appendix A. key risks
Slide 29: Key risks
Key risks • Property values: The ongoing value of a Property is influenced by changes in property market conditions including supply, demand, capitalisation rates and rentals. There is no guarantee that a Property will achieve a capital gain on its sale or that the value of the Property will not fal
Slide 30: Key risks
Key risks • Income returns: Distributions to Securityholders will include a degree of dependency upon the income return received in connection with the investments of the Fund. There is a risk that the contracts associated with investments may fall into default which could result in a reduction in i
Slide 31: Key risks (cont'd)
Key risks (cont’d) • Ranking: If the Fund is wound-up, Securityholders will rank behind secured and unsecured creditors of the Fund. If there is a shortfall of funds on winding-up, there is a risk that Securityholders will receive less than the NTA per Security. • Responsible Entity risk: By investi
Slide 32: Key risks (cont'd)
Key risks (cont’d) • Economy and market conditions: There is the risk that changes in economic and market conditions may affect asset returns and values and may decrease the Security price. The overall performance of Securities may be affected by changing economic or property market conditions. Thes
Slide 33: Appendix B. Glossary
REAL ASSETS PRIVATE EQUITY CREDIT Appendix B. glossary
Slide 34: Glossary
Glossary Term Definition 360 Capital Group means TGP and each of its subsidiaries 360 Capital Passive REIT means 360 Capital Passive REIT (ARSN 602 304 432) 360 Capital Active REIT means 360 Capital Active REIT (ARSN 602 303 613) ASX means ASX Limited ACN 008 624 691 or the market that it operates (
Slide 35: Glossary
Glossary Term Definition Offer means the capital raising in TOT of an amount of up to $46.8m as described in this presentation, comprising the Entitlement Offer Offer Price means the price of $0.40 per Security offered under the Entitlement Offer Property means a property within the portfolio of TOT
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