Qualitas Real Estate Income Fund Units · ASX:QRI
Qualitas Real Estate Income Fund Units — Investor Presentation (September 2019)
31 slides from Qualitas Real Estate Income Fund Units's investor presentation, Sep 11, 2019
Slide 1: Qualitas Real Estate Income Fund Investor Presentation – September 2019
Qualitas For personal use only Real Estate Income Fund ARSN 627 917 971 Investor Presentation – September 2019 LEAD ARRANGER AND JOINT LEAD MANAGER JOINT LEAD MANAGER Commercial-in-Confidence | September 20191
Slide 2: Fund Achievements since IPO
Fund Achievements since IPO For personal use only November 2018 31 August 2019 Achievements Investment ✓ August’s annualised net return was 5.27% p.a.1 performance ✓ Monthly cash distributions, total paid since listing of 4.73 cents / unit ✓ Trading at a premium to NAV Capital & ✓ Completed a placem
Slide 3: Agenda
Agenda For personal use only 1 The Offer 2 QRI Update 3 About Qualitas Annexure 1: Key Risks Important Information International Offer Restrictions Commercial-in-Confidence | September 2019 3
Slide 4: The Offer
For personal use only The Offer Commercial-in-Confidence | September 20194
Slide 5: Introduction
Introduction For personal use only The Manager has progressively invested QRI’s capital, having regard to current market conditions and available investment opportunities, demonstrating a disciplined investment approach. The Manager has invested 81% of the Trust’s capital as at 31 August 2019, with
Slide 6: Key Offer Details
Key Offer Details Qualitas Real Estate Income Fund (Trust) For personal use only Manager QRI Manager Pty Ltd Responsible Entity The Trust Company (RE Services) Limited Offer Structure Accelerated non-renounceable entitlement offer with a shortfall bookbuild Entitlement ratio 1 new unit for every 1 e
Slide 7: Offer structure & key dates
Offer structure & key dates ASX announcement of offer, PDS lodged 11-Sep-19 Early Retail Entitlement Offer “EREO” For personal use only Voluntary accelerated participants Record date 13-Sep-19 Wholesale Entitlement Offer “WEO” Accelerated wholesale unitholders Open of EREO 16-Sep-19 Close of EREO 20
Slide 8: QRI Update
For personal use only QRI Update Commercial-in-Confidence | September 2019 8
Slide 9: Market Update
Market Update For personal use only • The first half of 2019 saw continued softening house • Senior loans present the deepest pool of opportunities prices, negative market sentiment and uncertainty in the current market. around government policy settings. • Lower construction volumes have resulted i
Slide 10: Market Opportunity
Market Opportunity The funding gap continues to grow in the Australian commercial real estate finance market, as banks continue to For personal use only retreat due to regulatory pressure and capital requirements. Demand for credit is supported by the low interest rate environment. Supportive $287 b
Slide 11: Commercial Real Estate Capital Structure
Commercial Real Estate Capital Structure Since listing, the Trust’s portfolio has predominantly invested in senior debt For personal use only • This has been driven by a deeper pool of senior loan opportunities being present in the current market as well the Manager’s focus on credit quality • The M
Slide 12: QRI Opportunity
QRI Opportunity The Qualitas Group is a deeply experienced investment manager, providing finance for real estate and assets. For personal use only Access to High Compelling Performing Manager Investment 1 2 • Disciplined and experienced Manager • Liquid investment opportunity secured by real estate
Slide 13: Fund performance
Fund performance For personal use only Return and Deployment QRI Trading Performance $1.750 ✓ Progressive deployment1 of capital in line with pipeline and loan settlement $1.725 $1.700 ✓ Remaining existing capital is allocated to investments that are $1.675 awaiting settlement $1.650 ✓ Trust returns
Slide 14: Portfolio Composition as of August 2019
Portfolio Composition as of 31 August 2019 The Trust portfolio is 81% invested and well diversified by investment type, loan type, property sector and geography1. For personal use only The Trust portfolio is characterised by a high weighting to senior secured loans and sound loan performance. Fund C
Slide 15: Recent Investments
Recent Investments Loans within the Trust Portfolio1: For personal use only Southern Sydney Outer-West Melbourne Inner-West Sydney Sydney CBD fringe Arch Finance Senior Construction Senior Land Senior Investment Senior Investment Warehouse Trust and Refurbishment note program LVR 61% LVR 60% LVR 55%
Slide 16: About Qualitas
For personal use only About Qualitas Commercial-in-Confidence | September 2019 16
Slide 17: The Qualitas Group
The Qualitas Group For personal use only Historical Track Record Since Inception1 The Qualitas Group has a disciplined track record of strong risk-adjusted Gross Asset Value returns and successful investment management, currently with ~$2.3 billion of Investments: of committed capital. A$ 11.4 billi
Slide 18: Experienced Team
Experienced Team Institutional platform with 70+ experienced real estate investment professionals, including on-the-ground For personal use only investment team of 22 with deep, longstanding relationships within the market. Andrew Schwartz Mark Fischer Tim Johansen Kathleen Yeung Gerd Mayer Group Ma
Slide 19: Qualitas Advisory Board
Qualitas Advisory Board For personal use only Michael Schoenfeld Elana Rubin Carol Schwartz AO Chairman Non-Executive Non-Executive Since April 2012 Since June 2013 Founding Member • Elana is a Director of Mirvac Group, AfterPay Touch Group, • Carol is an RBA Board Member and Non-Executive Director
Slide 20: Institutional-Grade Governance
Institutional-Grade Governance For personal use only The Advisory Board and dedicated internal committees maintain oversight over Qualitas Group operations and investments policies. Portfolio Asset Finance & Audit Advisory Board Trustee Board Management Committee Committee • Monitors activities, • O
Slide 21: Investment Principles
Investment Principles For personal use only At the centre of the Trust’s Investment Strategy are four Investment Principles, against which all the Trust’s investment opportunities will be assessed. Quantum of Returns Assessment of Known Risks • Seek to accurately forecast returns • Seek to diligentl
Slide 22: Investment Process
Investment Process Qualitas applies a highly selective, repeatable investment filtering and due diligence process for For personal use only each investment opportunity. Active asset and risk management is undertaken throughout the life of the loan. Active Asset Management Active Risk Monitoring and
Slide 23: Stakeholder Engagement and Contacts
Stakeholder Engagement and Contacts For personal use only Shareholder Engagement Regular shareholder Investor presentations Website Media emails Monthly, semi and Industry Monthly NAV Independent Research annual financial results Conferences For enquiries, please contact: Investment Advisers & Insti
Slide 24: Annexure – Key Risks
For personal use only Annexure 1 – Key Risks Commercial-in-Confidence | September 2019 24
Slide 25: Key Risks
Key Risks An investment in the Trust carries risk. Risks can be categorised as being specific to the Investment Strategy and Risks relating to the Trust Manager, the Trust, the Trust’s portfolio, having Units listed on ASX and general risks associated with investing in the For personal use only loan
Slide 26: Key Risks
Key Risks Potential conflicts of interest Risks relating to the portfolio For personal use only Associates of the Manager also act as manager of the Qualitas Funds which have similar investment objectives to the Trust. It is therefore possible these entities within the Qualitas Group may manage fund
Slide 27: Key Risks
Key Risks Risks relating to the portfolio cont. Risks relating to the portfolio cont. For personal use only Insufficient underlying security Collateral real estate valuation In the event of a default by a party that has borrowed monies the subject of any of the Trust’s investments, the value of the
Slide 28: Key Risks
Key Risks Risks relating to Units listed on the ASX General investment risks For personal use only Unit trading price Economic risks The trading price of any listed security may change, related to performance and matters inherent to the investment The Trust’s Investment Strategy relies in part upon
Slide 29: Important Information
Important Information The document relates to a potential offer by The Trust Company (RE Services) Limited ABN 45 BondAdviser has acted on information provided to it and the content of the 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Qualitas Real Estate Income research report i
Slide 30: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new units ("New Units") of the Fund in any jurisdiction in which it would be a) the Fund will not be liable if it proves that the purchaser purchased the New Units with knowledge of the unlawful. In particular, this docum
Slide 31: International Offer Restrictions cont.
International Offer Restrictions cont. New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Units are not being offered to the public within New Zealand other than to ex
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