Waypoint Reit Ltd. · ASX:WPR
Waypoint Reit — Viva Energy REIT — Investor Presentation (June 2017)
44 slides from Waypoint Reit's investor presentation, Jun 22, 2017
Slide 1: Viva Energy REIT Acquisitions and Equity Raising Presentation
Viva Energy REIT Acquisitions and Equity Raising Presentation 22 June 2017 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Viva Energy REIT (VVR) It has been prepared without taking into account the objectives, PAST PERFORMANCE which is a stapled entity comprising shares in Viva Energy REIT financial or tax situation or needs of individuals. Before making an Past perform
Slide 3: Disclaimer
DISCLAIMER Investors should consider the forward-looking statements contained This Presentation may not be distributed or released in the United The Parties do not make any recommendation as to whether any in this Presentation in light of those disclosures and not place reliance States. This Present
Slide 4: Contents
Contents Highlights 5 Property acquisitions overview 9 Equity raising overview 13 Investment highlights 16 Appendix 18 4
Slide 5: Highlights
Highlights Shell Coles Express West Ryde, NSW 5 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 6: Overview of acquisitions, equity raising and capital management
Overview of acquisitions, equity raising and capital management ● VVR has contracted1 to acquire 8 service station properties for a purchase price of $89.1 million (excluding transaction costs) – Weighted average cap rate of 5.6% – Weighted average lease expiry of 10.8 years (calculated as at 30 Jun
Slide 7: Earnings update, transaction impacts and capital management
Earnings update, transaction impacts and capital management ● Revised Distributable Earnings Per Security guidance for the year ending 31 December 2017 of 13.2 cents, up from the PDS forecast Earnings of 13.07 cents per security, including the impact of post IPO acquisitions and the Institutional Pl
Slide 8: Demonstrated acquisition track record
Demonstrated acquisition track record • 12 property acquisitions announced since IPO, with a total purchase price of $115.3 million1 Number of properties 4 8 10 22 45.0 160.3 Purchase price1 89.1 26.2 2 Announced Feb-17 Announced Jun-17 Properties currently in due diligence Total Complementary Demon
Slide 9: Property acquisitions overview
Property acquisitions overview Shell Coles Express Ultimo, NSW 9 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 10: Acquisition highlights
Acquisition highlights Newly acquired properties are good quality, complementary to existing portfolio and in line with stated strategy Properties are good quality including Laverton which is the largest Shell Coles Majority of properties are new (less than three Eastern seaboard metropolitan proper
Slide 11: Property details
Property details • Acquisitions are consistent with VVR’s growth strategy Geographic diversification of acquisitions8 • Complementary portfolio of strategically located properties NT NSW 4% • Properties are primarily located in metropolitan areas along 12% the Eastern seaboard and are Shell branded
Slide 12: Portfolio impacts of acquisitions
Portfolio impacts of acquisitions Pro forma total portfolio geographic diversification3 Pro forma ACT TAS NT Portfolio February June as at 30 SA 2% 2% 1% Dec-16 5% metrics acquisitions1 acquisitions2 June WA NSW 20173 8% 33% Portfolio 2,105 26 89 2,220 ($m) QLD 21% Number of 425 4 8 437 properties V
Slide 13: Equity raising overview
Equity raising overview Shell Coles Express Rouse Hill, NSW NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 13
Slide 14: Equity raising overview
Equity raising overview • $80 million Institutional Placement to eligible investors – Institutional Placement price to be determined via a variable price bookbuild from an underwritten floor price of $2.31 per stapled security, representing a 2.9% discount to the closing price of $2.38 on 21 June 20
Slide 15: Equity raising timetable
Equity raising timetable Event Date (Sydney time) Institutional Placement Institutional Placement opens Thursday, 22 June 2017 Institutional Placement closes for eligible Australia, New Zealand and Asia investors 4pm, Thursday, 22 June 2017 Institutional Placement closes for eligible investors in ot
Slide 16: Investment highlights
Investment highlights Shell Coles Express Bunker Hill, VIC NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 16
Slide 17: Pro forma investment highlights as at June 2017
Pro forma investment highlights as at 30 June 20171 Portfolio of 437 good quality service station properties Geographically diverse across all Australian states and territories Security of income through long term Triple Net leases2 to Viva Energy Australia, a high quality investment grade rated ten
Slide 18: Appendix
Appendix Shell Coles Express Coorparoo, QLD NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 18
Slide 19: Appendix 1: Property details
Appendix 1: Property details 1 285 Fitzgerald Road, Laverton North, VIC2 1182 Sydney Road, cnr Leo Street, Fawkner, VIC2 Price $21.6 million Price $9.3 million Cap rate (excl. transaction costs) 5.3% Cap rate (excl. transaction costs) 5.7% Approximate site area 17,480 sqm Approximate site area 3,585
Slide 20: Appendix 1: Property details
Appendix 1: Property details1 Cnr Cranbourne Frankston Road & McClelland Drive, Cnr Doherty & Palmers Roads, Truganina, VIC2 Langwarrin, VIC2 Price $9.0 million Price $5.7 million Cap rate (excl. transaction costs) 5.1% Cap rate (excl. transaction costs) 5.4% Approximate site area 4,876 sqm Approxim
Slide 21: Appendix 1: Property details
Appendix 1: Property details1 Exit 54, lot 10 Old Pacific Highway, Coomera, QLD 442-444 Enogerra Road, Alderley, QLD1 Price $19.3 million Price $9.7 million Cap rate (excl. transaction costs) 5.9% Cap rate (excl. transaction costs) 5.4% Approximate site area 9,765 sqm Approximate site area 1,996 sqm
Slide 22: Appendix 1: Property details
Appendix 1: Property details1 731 Windsor Road, Rouse Hill, NSW 7 Gillard Crescent, Cossack, Katherine, NT Price $10.5 million Price $4.0 million Cap rate (excl. transaction costs) 5.4% Cap rate (excl. transaction costs) 8.0% Approximate site area 3,108 sqm Approximate site area 15,200 sqm Branding
Slide 23: Appendix 2: Transaction sources and uses of funds
Appendix 2: Transaction sources and uses of funds Sources A$m Uses A$m Equity raising1 80 Property acquisitions (announced Feb-17) 26 Cash and existing debt facilities 42 Property acquisitions (announced Jun-17) 89 Transaction costs2 6 Total sources3 122 Total uses3 122 • Pro forma gearing of 33.5%4
Slide 24: Appendix 3: Risk factors
Appendix 3: Risk factors This section sets out some of the key risks associated with: ● VVR and its existing business ● the acquisition of the properties ● participation in the Institutional Placement The risks set out in this section are not listed in order of importance and do not constitute an ex
Slide 25: Appendix 3: Risk factors
Appendix 3: Risk factors Exposure to Site Agreements in the event the Leases are terminated If a site lease between Viva Energy Australia and VVR terminates or expires while a site agreement between Viva Energy Australia and Coles Express (Site Agreement) in respect of the same property remains on f
Slide 26: Appendix 3: Risk factors
Appendix 3: Risk factors Property illiquidity VVR may be required to dispose of its property assets in response to adverse business conditions. Given the relatively illiquid nature of property investments, VVR may not be able to achieve the disposal of the asset in a timely manner or at a sale price
Slide 27: Appendix 3: Risk factors
Appendix 3: Risk factors Environmental liabilities Viva Energy Australia and VVR have entered into various arrangements designed to ensure that, in respect of the 425 service station sites acquired in connection with VVR’s IPO in 2016, environmental liabilities associated with the properties in the
Slide 28: Appendix 3: Risk factors
Appendix 3: Risk factors Fund-through and development risks VVR is acquiring Alderley on a ‘fund-through’ basis, under which VVR settles the vacant land purchase and then makes periodic payments based on quantity surveyor certification (including cost to complete). There is a risk that delays or iss
Slide 29: Appendix 3: Risk factors
Appendix 3: Risk factors Gearing Any increase in VVR’s gearing level will also increase the extent to which its financial performance and financial position are affected by changes in interest rates, asset prices and other financial indicators. If the market considers VVR to be highly geared, the co
Slide 30: Appendix 3: Risk factors
Appendix 3: Risk factors Risk associated with Double Net leases Double Net leases are lease agreements where the tenant is responsible for all outgoings except fair wear and tear, capital expenditure, the difference between single and multiple holding land tax and, in some cases, the landlord’s prop
Slide 31: Appendix 4: Foreign selling restrictions
Appendix 4: Foreign selling restrictions Foreign selling restrictions This Presentation does not constitute an offer of New Securities in any jurisdiction in which it would be unlawful. In particular, this Presentation may not be distributed to any person, and the New Securities may not be offered o
Slide 32: Appendix 4: Foreign selling restrictions
Appendix 4: Foreign selling restrictions European Economic Area (Ireland, Luxembourg, Netherlands and the United Kingdom) (continued) The alternative investment fund managers directive (Directive 2011/61/EU) (the “AIFMD”) In relation to each member state of the EEA which has implemented the AIFMD (e
Slide 33: Appendix 4: Foreign selling restrictions
Appendix 4: Foreign selling restrictions Ireland (continued) This Presentation and the information contained herein is confidential and has been prepared and is intended for use on a confidential basis solely by those eligible investors in the Republic of Ireland to whom it is sent. This Presentatio
Slide 34: Appendix 4: Foreign selling restrictions
Appendix 4: Foreign selling restrictions Singapore (continued) Where New Securities are subscribed or purchased under Section 275 and Section 282Z of the SFA by a relevant person which is: 1) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business
Slide 35: Appendix 4: Foreign selling restrictions
Appendix 4: Foreign selling restrictions Switzerland VVR has not been approved by the Swiss Financial Market Supervisory Authority FINMA (“FINMA”) as a foreign collective investment scheme pursuant to Article 120 paragraph 1 of the Swiss Collective Investment Schemes Act of June 23, 2006, as amended
Slide 36: Appendix 4: Foreign selling restrictions
Appendix 4: Foreign selling restrictions United Arab Emirates (continued) Pursuant to the Abu Dhabi Global Markets (“ADGM”) Financial Services and Markets Regulations 2015 - ADGM Markets Law, and the ADGM Markets Rules, both as amended from time to time, any New Securities in VVR to which this Prese
Slide 37: Appendix 5: Disclosure to EEA investors (AIFMD)
Appendix 5: Disclosure to EEA investors in relation to the alternative investment fund managers directive Prospective investors, particularly those domiciled, or with a registered office, in a member state of the European economic area (“EEA”) should note that, as an Australian entity with stapled s
Slide 38: Appendix 5: Disclosure to EEA investors (AIFMD)
Appendix 5: Disclosure to EEA investors in relation to the alternative investment fund managers directive The Fund Structure (continued) The Fund is an open-ended real estate investment trust and investors may participate in Viva Energy REIT by purchasing Stapled Securities. The principal activity o
Slide 39: Appendix 5: Disclosure to EEA investors (AIFMD)
Appendix 5: Disclosure to EEA investors in relation to the alternative investment fund managers directive Use of Leverage and associated risks; Maximum Amount of Leverage Viva Energy REIT entered into a syndicated facility agreement dated 10 July 2016 pursuant to which a syndicate of domestic and in
Slide 40: Appendix 5: Disclosure to EEA investors (AIFMD)
Appendix 5: Disclosure to EEA investors in relation to the alternative investment fund managers directive Contractual basis of Investment, Governing Law and Enforceability of Judgments (continued) Following acceptance of their Bid and payment of the subscription price for their allocation of Stapled
Slide 41: Appendix 5: Disclosure to EEA investors (AIFMD)
Appendix 5: Disclosure to EEA investors in relation to the alternative investment fund managers directive Professional Liability Risks Please refer to Section 10.3.3 of the PDS: “Investment Risks – General Risks – Insurance” for a description of the insurances in respect of which Viva Energy REIT ha
Slide 42: Appendix 5: Disclosure to EEA investors (AIFMD)
Appendix 5: Disclosure to EEA investors in relation to the alternative investment fund managers directive Fees, charges and expenses Fees, charges and expenses and the maximum amounts thereof are described in Section 1 of the PDS: “Investment Overview – Structure and corporate governance – What fees
Slide 43: Glossary
Glossary Cap rate Capitalisation rate This is a non-IFRS measure being net statutory profit adjusted to remove transaction costs and Distributable Earnings non-cash items, including straight lining of rental income, amortisation of debt and establishment fees and any fair value adjustments to invest
Slide 44: Glossary
Glossary Viva Energy Australia Viva Energy Australia Pty Ltd (ABN 46 004 610 459) Viva Energy REIT is a stapled entity comprising one share in Viva Energy REIT Limited (ABN Viva Energy REIT or VVR 35 612 986 517) and one unit in the Viva Energy REIT Trust (ARSN 613 146 464) WACR Weighted average cap