360 Capital Reit · ASX:TOT
360 Capital Reit — 360 Capital Total Return Fund — H1 2018 Earnings Presentation
15 slides from 360 Capital Reit's earnings presentation, Feb 28, 2018
Slide 1: 2018 Half Year Results Presentation
For personal use only 2018 HALF YEAR RESULTS PRESENTATION TOTAL RETURN FUND ASX: TOT The stapled fund comprising 360 Capital Total Return Passive Fund (ARSN 602 304 432) and 360 Capital Total Return Active Fund (ARSN 602 303 613) 28 FEBRUARY 2018
Slide 2: Market Recognising TOT's Business Model
Market Recognising TOT’s Business Model For personal use only TOT Total Return – 12mths: 25.1% S&P/ASX 300 AREIT Index Total Return – 12mths: 6.4% Index Outperformance ~19% TOT Enters Non-bank Lending Nov-2017 Mar-2017 Jan-2017 May-2017 Jul-2017 Sep-2017 TOT Total Return S&P/ASX 300 A-REIT Accumulat
Slide 3: HY18 Financial Highlights
HY18 Financial Highlights For personal use only $0.67m $4.17m 25.1% $72.7m Statutory Profit Operating Profit 12 Month Total Cash Available Securityholder Return 1.0 cps 6.3 cps 4.5cps $79.4m Statutory Profit Distributions Market Operating Earnings (including Capitalisation2 distributable gain)1 1. D
Slide 4: Current Investment Focus
Current Investment Focus For personal use only Broad and Flexible Mandate Across the Capital Stack Why debt? • Late stages of real estate cycle • Focus on capital preservation, step-out of first Direct Real Estate loss position Real Estate Debt • Changes in prudential regulation have further created
Slide 5: Investment Focus
Investment Focus Self liquidating debt investments provide flexibility if market conditions change For personal use only Capital Protection and 12%-17% IRR p.a. 6-7% yield and 15%+ Capital Growth p.a. Debt Investing Equity Investing Capital Returning From Loan Book Capital Available to Redeploy in D
Slide 6: Non-Bank Landscape
Non-Bank Landscape The Market Opportunity (1) Deal Origination For personal use only With increasing regulatory pressures, traditional banks are unable to service the demand for real estate lending, creating a funding gap for non-bank Direct Australian & lenders Relationships Overseas Banks with Bro
Slide 7: Current Loan Portfolio
Current Loan Portfolio Hotel Development Melbourne Medical Centre Sydney House & Land For personal use only Status Financial Close Financial Close Financial Close Loan Type Mezzanine loan Progressively drawn senior loan Progressively drawn senior loan Development of 2,396 sqm (GLA) medical Acquisiti
Slide 8: Pipeline in Due Diligence
Pipeline in Due Diligence For personal use only Boarding House Medium Density Residential Hotel Status Terms agreed Terms issued Terms issued Loan Size $8.0 million $32.0 million $36.0 million Loan Type Progressively drawn senior loan Progressively drawn senior loan Progressively drawn senior loan T
Slide 9: Market Awareness and Deal Flow Growing
Market Awareness and Deal Flow Growing Fund Manager Focus on Capital Preservation For personal use only – 11 years' experience – B. Bus (prop economics) – Grad. Cert App Fin Significant pipeline of opportunities subject to 360 Capital’s – Experience across property patient and diligent approach to i
Slide 10: Earnings & Distributions
Earnings & Distributions • Distribution income has reduced as a result of the sale For personal use only HY18 HY17 CHANGE of IDR securities ($’000) ($’000) • Operating expenses have increased inline with the Distribution income 3 1,432 Fund’s increased size Finance income 766 14 • Distributable gain
Slide 11: Assets & Liabilities
Assets & Liabilities For personal use only • Cash balance as a result of the sale of IDR Units Dec 17 Jun 17 CHANGE ($m) ($m) • Current balance of Loan Investments represents drawn amounts only Cash 72.7 19.9 • Total assets have decreased as a result of the special Receivables 0.1 2.2 distribution i
Slide 12: Active and Passive Revenue Streams
Active and Passive Revenue Streams For personal use only Passive returns from Active returns in loan portfolio form of fee revenue 360 Capital Total Return Passive 360 Capital Total Return Active Fund (ARSN 602 304 432) Fund (ARSN 602 303 613) Loan Income Establishment Fees >12%-15% interest rates >
Slide 13: Outlook
Outlook • Non-bank lending in real estate expected to continue to increase: For personal use only - APRA has imposed more banking regulations on Australian Banks - Banking Royal Commission may further restrict bank lending • Price maker, not taker – i.e. TOT can name its interest rate as has capital
Slide 14: Important Information
Important Information This presentation has been prepared by 360 Capital FM Limited (ABN 15 090 664 396) (360FM) as responsible entity of the 360 Capital Total Return Fund (ASX: TOT), the stapled security comprising 360 Capital Total Return Passive Fund (ARSN 602 304 432) and 360 Capital Total Retur
Slide 15: Thank you.
| For personal use only | Thank you.
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