Homeco Daily Needs Reit · ASX:HDN
Homeco Daily Needs Reit — Merger or Acquisition (September 2021)
37 slides from Homeco Daily Needs Reit's merger presentation, Sep 13, 2021
Slide 1: Acquisition 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 13 September 2021 ACQUISITION AND EQUITY RAISING PRESENTATION HomeCo Daily Needs REIT (ASX: HDN) provides the attached Acquisition and Equity Rai
Slide 2: Acquisition and equity raising presentation
Acquisition and equity raising presentation 13 September 2021 NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 3: Important Notices and Disclaimer
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) (HFML) as responsible entity of HomeCo Daily Needs REIT (ARSN 645 086 620) (HDN) in connection with an institutional pla
Slide 4: Important Notices and Disclaimer
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 number of important factors could cause actual results or performance to differ materially from the forward looking sta
Slide 5: Transaction overview
Transaction overview Daily Needs REIT Acquisitions HMC Funds Management Limited, as responsible entity of HomeCo Daily Needs REIT (HDN), has entered into agreements to acquire a 100% interest in a portfolio of 6 assets (Acquisition Portfolio) for a total purchase price of $222.0 million, representin
Slide 6: Transaction overview
Transaction overview Daily Needs REIT Equity raise size ▪ The Acquisitions will be partially funded through a $88.3 million fully underwritten placement (Placement) and pricing ▪ The issue price of $1.61 per New Unit (Issue Price) represents a: ̶ 3.3% discount to the last close price of $1.6650 on 1
Slide 7: Strategic rationale for transaction
Strategic rationale for transaction Daily Needs REIT 1 ✓ High quality assets underpinned by 80% exposure to major national tenants including Coles and JB Hi-Fi High quality ‒ 99.5% occupancy1 and 88% contracted rental escalations2 (fixed WARR across 73% of portfolio of 3.3%) strategic ‒ Low site cov
Slide 8: Acquisition overview
Acquisition overview Daily Needs REIT Independent Estimated Cap Rate Purchase Cap Rate Site Centre State draft valuation Occupancy2 WALE3 Rental guarantee (RG) Settlement (Acq.) Price (Sep-21) coverage (Sep-21)1 Woodlea Town VIC 24-Sep-21 5.25% 55.4 5.25% 55.4 100.0% 10.7 31.4% 12 month RG on vacanc
Slide 9: Woodlea Town Centre (VIC)
Woodlea Town Centre (VIC) Daily Needs REIT Summary Tenant mix3 ▪ Newly completed neighbourhood centre which opened in March 2021 and is fully integrated into the rapidly growing Woodlea Description masterplanned community ▪ Centre is anchored by a Coles supermarket on a 15-year lease 22% Non-special
Slide 10: Pakenham Lifestyle Centre (VIC)
Pakenham Lifestyle Centre (VIC) Daily Needs REIT Summary Tenant mix3 ▪ Highly convenient LFR centre located 53km from the CBD in the growing southeast area of Melbourne. Conveniently located with a 238m frontage to Princes Highway, a major arterial road that feeds into the M1 motorway accessing Melb
Slide 11: HomeCo LFR assets
HomeCo LFR assets Daily Needs REIT Acquired at a $8.0 million or 16.8% discount to Sep-21 draft independent valuations demonstrating strong alignment between HDN and the manager (HMC) HomeCo LFR assets HomeCo Coffs Harbour, NSW HomeCo Lismore, NSW ▪ Anaconda and Sydney Tools ▪ Spotlight, PetStock an
Slide 12: Strategic adjoining properties
Strategic adjoining properties Daily Needs REIT Acquisitions consolidate HDN’s existing holdings in Upper Coomera and Armstrong Creek and provide further flexibility to unlock land value Strategic adjoining property acquisitions HomeCo Armstrong Creek, VIC Coomera, QLD Coomera City ▪ Located 70km so
Slide 13: Sources and uses
Sources and uses Daily Needs REIT Sources of funds $m Placement 88.3 Debt 46.2 Total sources (excl. Pakenham) 134.5 DRP 53.8 Debt 52.1 Total sources 240.4 Uses of funds $m Acquisitions (excl. Pakenham) 123.5 Woodlea Town Centre, VIC Stamp duty 8.0 Transaction costs1 3.0 Total uses (excl. Pakenham) 1
Slide 14: Indicative Timetable
Indicative Timetable Daily Needs REIT Event 2021 Announcement of the Placement Monday 13 September Placement bookbuild Monday 13 September Settlement of New Units issued under the Placement Thursday 16 September Allotment and normal trading of New Units issued under the Placement Friday 17 September
Slide 15: Further Information
Further Information Daily Needs REIT
Slide 16: Portfolio impacts
Portfolio impacts Daily Needs REIT HDN tenancy composition pre-transaction (by income)1 HDN tenancy composition post-transaction (by income)1 Non-specialty Non-specialty 21% Neighbourhood 21% Neighbourhood 32% 29% Specialty Neighbourhood Specialty Neighbourhood Large Format Retail Large Format Retai
Slide 17: Portfolio impacts
Portfolio impacts Daily Needs REIT HDN Acquisitions Pro forma HDN (30-Jun-21 PF)1 (Sep-21)2 (30-Jun-21) Portfolio valuation $1,556m $230m $1,786m Portfolio WACR 5.63% 5.63% 5.63% Portfolio WALE3 7.6 7.1 7.5 Occupancy4 99.3% 99.5% 99.3% Rent review composition4: 65% / 16% / 19% 73% / 15% / 12% 66% /
Slide 18: Pro-forma Balance Sheet
Pro-forma Balance Sheet Daily Needs REIT Jun-21 pro-forma gearing maintained at mid-point of target 30–40% gearing range3 Jun-21 pro-forma gearing Lismore / DRP Acquisitions 1 Coffs Pakenham DRP (Dec-21, $m Jun-21 PF (excl. Jun-21 PF Jun-21 PF Harbour val. acquisition (Sep-21)2 Mar-22 and Pakenham)
Slide 19: Appendix A: Risks
Appendix A: Risks Daily Needs REIT
Slide 20: 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 21: 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 22: 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 COVID-19 The COVID-19 pandemic has had a significant impact on the global and Australian economy and the ability of businesses, individuals and go
Slide 23: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Unable to lease properties, or they may be vacant Leases of existing properties and those to be acquired will come up for renewal on a periodic basis. There
Slide 24: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Tenant concentration Whilst HDN has a diverse tenant mix, a high proportion of the gross property income from its portfolio is generated from the top 20 ten
Slide 25: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT E-commerce trends There has been an observed trend towards consumers using e-commerce sales channels when purchasing goods and services. This trend has resu
Slide 26: Key risks
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key risks Daily Needs REIT Properties are illiquid Property assets are by their nature illiquid investments. If it were necessary or desirable for HDN to sell one or more of the prope
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 Insurance risk HDN maintains appropriate insurance coverage in respect of its portfolio where insurance coverage is available on commercial terms and at acc
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 Retail tenancies legislation Retail tenancies legislation in force in each Australian State and Territory regulates the terms on which leases and licences a
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 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 30: Appendix B: Summary of Placement underwriting arrangements
Appendix B: Summary of Placement underwriting arrangements Daily Needs REIT
Slide 31: Summary of Placement underwriting arrangements
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Summary of Placement underwriting arrangements Daily Needs REIT HMC Funds Management Limited (HFML) in its capacity as responsible entity of HomeCo Daily Needs REIT (HDN) has entered
Slide 32: Summary of Placement underwriting arrangements
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Summary of Placement underwriting arrangements Daily Needs REIT ▪ ASX makes any official statement to any person, or indicates to HFML, or the Joint Lead Managers (whether or not by w
Slide 33: Appendix C: Foreign Offer Restrictions
Appendix C: Foreign Offer Restrictions Daily Needs REIT
Slide 34: 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 Units of HDN in any jurisdiction in which it would be un
Slide 35: 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 36: Appendix D: Summary of DRP underwriting arrangements
Appendix D: Summary of DRP underwriting arrangements Daily Needs REIT
Slide 37: Summary of DRP underwriting arrangements
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Summary of DRP underwriting arrangements Daily Needs REIT HMC Funds Management Limited in its capacity as responsible entity of HomeCo Daily Needs REIT (HDN) has entered into an agree
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