360 Capital Reit · ASX:TOT
360 Capital Reit — H1 FY2022 Earnings Presentation
28 slides from 360 Capital Reit's earnings presentation, Feb 24, 2022
Slide 1: HY22 Results Presentation
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT 510 Church Street, Cremorne P.1
Slide 2: Table of Contents
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY Table of Contents CREDIT 1 Highlights 3 2 Irongate Group (ASX:IAP) update 9 3 Proposed portfolio acquisition and strategy 11 4 Proposed sale of PMG 14 5 Proposed Change to performance fee 17 6 Financial summary 19 7 Key focus a
Slide 3: 1. Highlights
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT CREDIT 1. Highlights 510 Church Street, Cremorne P.3
Slide 4: An investment in 360 Capital REIT provides
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY An investment in 360 Capital REIT (ASX:TOT) provides: CREDIT • Balance sheet exposure to Australia and New Zealand commercial real estate investments • Stable and growing income returns with regular, quarterly distributions and
Slide 5: The manager – 360 Capital Group
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE CREDIT EQUITY The manager – 360 Capital Group (ASX:TGP) PUBLIC EQUITY CREDIT A$1.56b1,2 Alternative Asset Management Platform Real Assets Credit Private Equity A$1.5b AUM A$44m AUM A$23m AUM Listed Real Estate Private Real Estate Listed Credit Private Cre
Slide 6: 360 Capital REIT Snapshot
REAL REALASSETS ASSETS PRIVATE PRIVATEEQUITY EQUITY PUBLIC CREDITEQUITY 360 Capital REIT Snapshot CREDIT $1.26 $0.95 6.3% NTA per Unit Trading Price Annualised distribution -24.6% discount to yield1 NTA1 2.6cpu 26.5cpu EXECUTING ON HY22 Operating Forecast FY22 THE STRATEGY Earnings Operating Earning
Slide 7: HY22 Operational Highlights
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY HY22 Operational Highlights CREDIT HY22 Key Highlights Simplified the balance sheet of TOT with the realisation of the remaining $6.0m of non-core assets1 +10.5% completed. TOT’s investments are now all real estate equity. Incr
Slide 8: 360 Capital REIT’s Strategy
REAL ASSETS PRIVATE EQUITY CREDIT 360 Capital REIT’s Strategy Simplification of TOT’s Business Model Objective To provide investors with regular quarterly distributions and the opportunity for capital growth Simplified strategy of investing in real estate equity through the ownership of an appropria
Slide 9: 2. Irongate Group Update
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT 2. Irongate Group Update 34 Southgate Avenue, Cannon Hill P.9
Slide 10: Irongate Group (ASX:IAP) Update
REAL ASSETS PRIVATE EQUITY CREDIT Irongate Group (ASX:IAP) Update The strategy of investing in IAP was to give TOT a portfolio of direct assets and TGP to expand its funds management activities. TOT made its initial investment in IAP in January 2021, acquiring a $42.1 million 9.2% interest, subseque
Slide 11: 3. Proposed Portfolio Acquisition and Strategy
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT 3. Proposed Portfolio Acquisition and Strategy 38 Sydney Avenue, Canberra P.11
Slide 12: Proposed portfolio acquisition
REAL ASSETS PRIVATE EQUITY CREDIT PUBLIC EQUITY Proposed portfolio acquisition CREDIT Cremorne, VIC Brisbane, QLD Canberra, ACT A$1,170m Mandates Asset • 50% interest in a brand new, modern A-grade • 100% interest in a brand new, modern A-grade • 100% interest in a recently refurbished A-grade offic
Slide 13: 360 Capital REIT portfolio strategy
REAL ASSETS PRIVATE EQUITY CREDIT 360 Capital REIT portfolio strategy To provide consistent and growing income returns with an opportunity for capital growth from a diversified portfolio of assets in core markets within Australia and New Zealand. Key investment criteria: • Securely leased assets wit
Slide 14: 4. Proposed Sale of PMG Group
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT 4. Proposed Sale of PMG Group 38 Sydney Avenue, Canberra P.14
Slide 15: Proposed sale of PMG to 360 Capital Group
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY Proposed sale of PMG to 360 Capital Group (ASX:TGP) CREDIT Based on feedback from a number of TOT investors, and TOT’s strategy of becoming a pure REIT, TOT undertook a review of the suitability of maintaining its investment in
Slide 16: Benefits of proposed sale of PMG
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY Benefits of proposed sale of PMG CREDIT ✓ The Proposed Sale would realise a return of 32.5% for TOT securityholders1 ✓ Provide TOT with $21.3m of capital to be redeployed2 ✓ Simplifies the investment portfolio of TOT and remove
Slide 17: 5. Proposed Change to Performance Fee
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT CREDIT 5. Proposed Change to Performance Fee 510 Church Street, Cremorne P.17
Slide 18: Proposed Change to performance fee
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY Proposed Change to performance fee CREDIT • The Responsible Entity is entitled to a performance fee of 20% of any total return in excess of 12% p.a. • The calculation of total return is based on actual distributions paid to Sec
Slide 19: 6. Financial Summary
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT CREDIT 6. Financial Summary 38 Sydney Avenue, Canberra P.19
Slide 20: Key HY22 financial metrics
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE CREDIT EQUITY PUBLIC EQUITY Key HY22 financial metrics CREDIT Financial results overview During the period net assets increased by +$19.7m $19.7m largely due to the increase in the 31-Dec-21 30-Jun-21 Change Change Increase in net value of IAP Balance she
Slide 21: 7. Key Focus and Guidance
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT CREDIT 7. Key Focus and Guidance 510 Church Street, Cremorne P.21
Slide 22: Continue to execute on TOT’s refined strategy
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY Key focus and guidance CREDIT Continue to execute on TOT’s refined strategy Communication Improve and maintain communication to existing and potential investors Complete the sale of PMG to TGP during 2H22, delivering a 32.5% pr
Slide 23: Appendix 1: Financials
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY CREDIT PUBLIC EQUITY CREDIT Appendix 1: Financials P.23
Slide 24: HY22 balance sheet highlights
REALASSETS REAL ASSETS PRIVATEEQUITY EQUITY PRIVATE CREDIT PUBLIC EQUITY HY22 balance sheet highlights CREDIT 31-Dec-21 30-Jun-21 Change Change ($m) ($m) ($m) (%) As at 31 December 2021, TOT had $154.8m of Cash 13.1 15.6 (2.5) $154.8m securities, $150.5m of which is the 12.8% holding in IAP, which i
Slide 25: Proforma balance sheet post sale of PMG and acquisition of portfolio
REALASSETS REAL ASSETS PRIVATEEQUITY EQUITY PRIVATE CREDIT PUBLIC EQUITY Proforma balance sheet post sale of PMG and acquisition of portfolio CREDIT 31-Dec-21 IAP Sale1 Asset Sales2 Acquisitions1 Proforma ($m) ($m) ($m) ($m) ($m) Cash 13.1 165.3 7.3 (184.7) 1.0 Sources: $m PMG Funds (50%) 18.7 (18.7
Slide 26: HY22 profit and loss highlights
REALASSETS REAL ASSETS PRIVATEEQUITY EQUITY PRIVATE CREDIT PUBLIC EQUITY HY22 profit and loss highlights CREDIT HY22 HY21 Change Change ($m) ($m) ($m) (%) Distribution revenue of $3.8m, a +$3.5m increase from $3.8m HY21 due to capital being redeployed into real estate equity Distribution income Sale
Slide 27: Disclaimer
REAL ASSETS PRIVATE EQUITY CREDIT 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
Slide 28: REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT James Storey Bevan Douse Head of Real Assets Assistant Fund Manager +61 2 8405 8860 +61 2 8405 8860 James,storey@360capital.com.au Bevan.douse@360capital.com.au www.360capital.com.au www.360capital.com.au Level 37, 1 Macquarie Pl, Sydney NSW 2000 Level