360 Capital Reit · ASX:TOT
360 Capital Reit — H1 FY21 Earnings Presentation
27 slides from 360 Capital Reit's earnings presentation, Feb 26, 2021
Slide 1: 360 Capital REIT (ASX:TOT) HY21 Results Presentation
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 360 Capital REIT (ASX:TOT) HY21 Results Presentation 26 February 2021
Slide 2: Table of Contents
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY Table of Contents CREDIT CREDIT 1 Snapshot of HY21 Results 3 2 Refined Strategy and Value Proposition 8 3 Investment portfolio 11 4 HY21 Financial Summary 17 5 Capital Management 19 6 2H21 Key Focus and Guidance 21 Appen
Slide 3: 1. Snapshot of HY21 Results
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 1. Snapshot of HY21 Results P.3
Slide 4: TOT Snapshot of HY21 Results
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY TOT Snapshot of HY21 Results CREDIT NTA DISCOUNT1 $1.14 $0.88 NTA -22.8% CLOSING PRICE1 MARKET CAP1 6.0cps Executing Refined Forecast FY21 ~$122m Investment Strategy Distribution 1 Based on the $0.88 closing price of TOT on 25 February 2021 P.4
Slide 5: The Manager – 360 Capital Group (ASX:TGP)
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY The Manager – 360 Capital Group (ASX:TGP) CREDIT CREDIT 360 Capital REIT (ASX:TOT) is part of 360 Capital Group’s real assets strategy REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 360 Capital Active Value 360 Capital REIT 360 Capital CardioScan 360 Capital
Slide 6: What is 360 Capital REIT? Simplification of TOT's Business Model
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY What is 360 Capital REIT? CREDIT Simplification of TOT’s Business Model Objective To provide investors with regular quarterly distributions Simplified strategy of investing in real estate equity. Initial exposure through investments Strategy in real estate fu
Slide 7: Key HY21 Highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Key HY21 Highlights CREDIT Key HY21 Key Highlights 6.8% distribution Forecast FY21 annualised Active management of TOT's loan portfolio resulted in $42.4m in loan repayments during distribution yield2 the reporting period, with all direct real estate loans no
Slide 8: 2. Refined Strategy and Value Proposition
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 2. Refined Strategy and Value Proposition P.8
Slide 9: Executing on TOT's Refined Investment Strategy
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Executing on TOT’s Refined Investment Strategy CREDIT Balance Sheet Composition1 • 360 Capital REIT has refined its investment focus to real estate equity investing • Simplified strategy with majority of non-core assets repaid or contracted to sell • Balance
Slide 10: Value Proposition – Closing the Discount & Growing DPU
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Value Proposition – Closing the Discount & Growing DPU CREDIT Phase One – Attractive Entry Point Phase Two – Target Returning to Historical DPU levels Discount to NTA -22.8% and 6.0cps p.a. FY21 forecast Five-year track record of recurring distributions avera
Slide 11: 3. Investment Portfolio
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 3. Investment Portfolio P.11
Slide 12: PMG Funds Management Equity Partnership
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY PMG Funds Management Equity Partnership CREDIT TOT’s recently announced investment in PMG Funds provides TOT Investors with: P Exposure to a diversified commercial real estate funds management business, established in 1992 P Provides TOT a 50% interest in a g
Slide 13: PMG Real Estate Portfolio – Over 50% Industrial Exposure
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY PMG Real Estate Portfolio – Over 50% Industrial Exposure CREDIT Whangarei 8 Robert Street Tauranga Property value by region Auckland 67L Truman Lane, Mt. Maunganui Auckland 25.1% 114 Dominion Road, Mt Eden 46 Spring Street 6 Alderman Drive, Henderson 8 Paeran
Slide 14: PEET Limited Investment (ASX: PPC)
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY PEET Limited Investment (ASX: PPC) CREDIT Why did TOT invest in P PPC currently has c. 47,000 lots across 51 projects across Australia1 P Attractive entry price: Average entry price of PPC stake was acquired at a discount to net tangible assets P PPC is posit
Slide 15: Irongate Group (ASX: IAP)
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Irongate Group (ASX: IAP) CREDIT Why did TOT invest in P IAP is a diversified real estate fund with $1.1bn of real estate and a third-party funds management platform P IAP owns office and industrial assets across major metropolitan cities and established comm
Slide 16: Forecast Non-Core Asset Realisations Totaling $26.2m
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Forecast Non-Core Asset Realisations Totaling $26.2m CREDIT Velocity (VP7) Debt and Equity Corporate loan and equity to be repaid through Gladesville Apartments asset sales and future capital raising $10.5m Four remaining – value $4.2m Settled Forecast Foreca
Slide 17: 4. HY21 Financial Summary
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 4. HY21 Financial Summary P.17
Slide 18: Key Financial Metrics
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Key Financial Metrics CREDIT Financial results overview As at 31 December 2020, TOT had a cash $103.9m balance of $103.9m. Cash balance currently Balance sheet summary 31-Dec-20 30-Jun-20 Change Change Cash balance $13.7m as at 24 February 2021. ($m) ($m) ($m
Slide 19: 5. Capital Management
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 5. Capital Management P.19
Slide 20: Capital Management Initiatives
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Capital Management Initiatives CREDIT Closing the gap between trading price and NTA Simplified strategy of investing in real estate equity. Longer term objective of owning Simplification direct and valued-add assets on TOT’s balance sheet During the period, b
Slide 21: 6. 2H21 Key Focus and Guidance
REALASSETS REAL ASSETS PRIVATEEQUITY PRIVATE EQUITY PUBLIC EQUITY PUBLIC EQUITY CREDIT CREDIT 6. 2H21 Key Focus and Guidance P.21
Slide 22: Focus and Guidance
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Focus and Guidance CREDIT Continue to execute on TOT’s refined strategy Discount to NTA Focus on closing the gap between trading price and NTA Communication Improve and maintain communication to existing and potential investors Complete the sale of AMF Financ
Slide 23: Appendix 1: Financials
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT Appendix 1: Financials P.23
Slide 24: 1H FY21 balance sheet highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 1H FY21 balance sheet highlights CREDIT 31-Dec-20 30-Jun-20 Change Change ($m) ($m) ($m) (%) Cash 103.9 78.5 25.4 As at 31 December 2020, TOT had a cash $103.9m balance of $103.9m. Cash balance currently Receivables 0.2 0.6 (0.4) Cash balance $13.7m as at 24
Slide 25: 1H FY21 profit and loss highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY 1H FY21 profit and loss highlights CREDIT H1 FY21 H1 FY20 Change Change Finance revenue of $1.5m, a –$1.8m decrease from H1 ($m) ($m) ($m) (%) $1.5m FY20 due to TOT choosing not to write new loans in the second half of the year Finance revenue Distribution in
Slide 26: Disclaimer
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY Disclaimer CREDIT 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 R
Slide 27: REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT James Storey Head of Real Assets +61 2 8405 8860 James,storey@360capital.com.au www.360capital.com.au Level 8, 56 Pitt Street, Sydney NSW 2000