360 Capital Reit · ASX:TOT
360 Capital Reit — FY2023 Earnings Presentation
29 slides from 360 Capital Reit's earnings presentation, Aug 24, 2023
Slide 1: 360 Capital REIT (ASX:TOT) FY23 Results Presentation
360 Capital REIT (ASX:TOT) FY23 Results Presentation 24 August 2023 P.1
Slide 2: Table of contents
Table of contents 1 Snapshot and key highlights 3 2 Portfolio overview 6 3 Asset management 8 4 Financials 13 5 FY24 Key focus and guidance 19 Appendix A Property portfolio 23 P.2
Slide 3: 1. Snapshot and key highlights
REAL ASSETS PRIVATE EQUITY PUBLIC EQUITY CREDIT 1. Snapshot and key highlights
Slide 4: 360 Capital REIT – value proposition
360 Capital REIT (ASX:TOT) – value proposition “360 Capital REIT is an ASX-listed diversified AREIT invested in a modern portfolio of income producing office, office/healthcare, high-tech industrial and retail assets within Australia” 8.8% (34.6%) 7.4 Years 3.0 Years Forecast years of fully franked
Slide 5: FY23 operational highlights
FY23 operational highlights FY23 highlights Simplification of TOT’s balance sheet and transition to traditional A- $225.0m REIT and acquisition of modern, diversified portfolio Modern diversified core portfolio The Fund realised proceeds of $186.9 million from the disposal of investments in Irongate
Slide 6: 2. Portfolio overview
2. Portfolio overview P.6
Slide 7: Portfolio overview
Portfolio overview “84% of the portfolio is leased to government and publicly listed tenants, diversified across industry segment and asset class” Portfolio occupancy1 Weighted average lease expiry1 Weighted average cap rate2 Gross assets 93.3% 7.4 years 5.33% $232.9m Portfolio diversification by as
Slide 8: 3. Asset management
3. Asset management
Slide 9: Leasing expiry profile
Leasing expiry profile Lease expiry profile (by income)1 70% New PZ Cussons lease 65.4% 60% 50% Reduction in vacancy from 9.0% to 6.7% 40% 30% 20% 12.7% 6.7% 8.2% 7.0% 10% 0.0% 0.0% 0.0% 0.0% 0.0% 0% Vacant FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32+ Current vacancy ADDRESS AREA INCOME (%)2 EXPIRY
Slide 10: Leasing strategy
Leasing strategy 510 Church Street, Cremorne Speculative Suite Strategy – 510 Church Street, Cremorne • Since TOT’s acquisition accelerated leasing with a speculative fit-out strategy. • First fitted suite leased to PZ Cussons prior to fit-out completion. Secured 5.5 year lease over 800sqm tenancy.
Slide 11: Commissioning of new assets
Commissioning of new assets 510 Church Street, Cremorne VIC 34 Southgate Avenue, Cannon Hill, Brisbane Topping out 26 • 510 Church February 2021 Street was completed in • In September 2022 TOT completed the October 2021 with over 55% of the acquisition of the newly constructed 34 7.1% NLA / 10 Yr Te
Slide 12: ESG initiatives
ESG initiatives Current / Target Property FY23 Initiatives FY24 Initiatives NABERS Rating Collection and monitoring of NABERS Continue optimising building performance Targeting 5-Star 510 Church Street, data Achieve 5-star NABERS rating in the Cremorne, VIC 5.0 stars1 / 5.0 stars Commissioned buildi
Slide 13: 4. Financials
REAL ASSETS PRIVATE EQUITY CREDIT 4. Financials
Slide 14: FY23 profit & loss highlights
FY23 profit & loss highlights FY23 FY22 Change Change PROFIT & LOSS STATEMENT Statutory net loss of $47.9 million ($m) ($m) ($m) (%) Statutory net loss represents a 242.1% decrease from the Gross property income 11.9 - 11.9 prior year. The result included a $53.4 Distribution income 0.1 8.0 (7.8) $4
Slide 15: FY23 balance sheet highlights
FY23 balance sheet highlights 30-Jun-23 30-Jun-22 Change Change BALANCE SHEET ($m) ($m) ($m) (%) Core Property Portfolio Cash 3.1 10.8 (7.7) During the year, TOT settled the three- $225.0m asset portfolio as part of the Irongate Group transaction Investment properties 225.0 - 225.0 (June 2022: Nil)
Slide 16: Transition from real estate debt and equity investing to direct assets
Transition from real estate debt and equity investing activities to direct assets Net asset value movements over FY22 & FY23 • TOT was originally established with a very wide real estate IAP Profit offset by portfolio NTA Impacted by June 23 acquisition costs including stamp duty revaluations mandat
Slide 17: TOT's unique tax benefits
TOT’s unique tax benefits 14.4%3 Grossed up FY24 forecast distribution 8.6cps eqv. 2 Franking Approximately 7.6cps of franking credits, yield taking franking equivalent to 3 years of fully franked credits into account Credits1 distributions1 Tax Benefit 6.0cps Taxable TOT will pay the taxable compon
Slide 18: Capital management
Capital management Debt facility summary Debt terms • TOT has entered into the following debt facility: • Term: 3-years $105m • Facility Limit: $105.0m Facility limit • Expiring: FY26 Interest rate strategy • TOT’s debt is currently unhedged, the FY23 weighted average all-in interest rate was 4.7% (
Slide 19: 5. FY24 key focus and guidance
REAL ASSETS PRIVATE EQUITY CREDIT 5. FY24 key focus and guidance
Slide 20: FY24 key focus and guidance
FY24 key focus and guidance Focus Status Complete leasing of vacancy / rental guarantee space at: Leasing • 510 Church Street, Cremorne; and • Ongoing • 38 Sydney Avenue, ACT • Look for opportunities to increase size and scale Scale of TOT including potential M&A activity across • Ongoing ASX listed
Slide 21: Identifying strategic investment opportunities
Contact details: Tony Pitt Executive Chairman +61 2 8405 8860 Tony.Pitt@360capital.com.au www.360capital.com.au James Storey Chief Executive Officer +61 2 8405 8860 James.Storey@360capital.com.au www.360capital.com.au Glenn Butterworth Chief Financial Officer +61 2 8405 8860 Glenn.Butterworth@360cap
Slide 22: Appendix A. Property portfolio
REAL ASSETS PRIVATE EQUITY CREDIT Appendix A. property portfolio
Slide 23: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Summary Metrics Valuation1 $115.0m (50%) NABERS Rating 5.0 stars2 NLA3 19,752 sqm Site Area3 3,026 sqm Occupancy4 87.1% WALE4 6.4 years Cap Rate 5.25% $/Sqm3 $11,644 Overview Ownership • 510 Church Street is a brand-new A-grade office/healthcare (65% office/35% health
Slide 24: 510 Church Street, Cremorne VIC
510 Church Street, Cremorne VIC Tenant %2 Dentsu 26.6% Commonwealth Govt. 24.5% Monash IVF 16.1% Kane 9.0% TLA 8.4% Alfasi 6.4% PZ Cussons 4.9% Mobilia 4.2% Lease expiry profile (by income)2 Major Tenants 100% 90% % total 80% NLA1 Review Expiry Option to Tenant Gross 70% (sqm) type date extend Rent
Slide 25: 34 Southgate Ave, Cannon Hill QLD
34 Southgate Ave, Cannon Hill QLD Summary Metrics Valuation $36.0m NABERS Rating 5.0 stars1 NLA 3,585 sqm Site Area 2,598 sqm Occupancy2 100.0% WALE2 9.2 years Cap Rate 5.25% $/Sqm $10,042 Overview Ownership • 34 Southgate Avenue is a brand-new high tech industrial Ownership Interest 100% building t
Slide 26: 34 Southgate Ave, Cannon Hill QLD
34 Southgate Ave, Cannon Hill QLD Lease expiry profile (by income)2 100.0% 100% 90% 80% 70% Major Tenants 60% % total Review Option to 50% Tenant NLA (sqm) Expiry date Gross Rent type extend 40% 30% Michael Hill 100.0% 3,585 Fixed Sept 32 2x5 20% 10% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Tota
Slide 27: 38 Sydney Ave, Canberra ACT
38 Sydney Ave, Canberra ACT Summary Metrics Valuation $74.0m NABERS rating 4.5 stars1 NLA 8,718 sqm Site Area 3,269 sqm Occupancy3 100.0% WALE3 8.3 years Cap Rate 5.50% $/Sqm $8,510 Overview Ownership • The Property comprises a modern four (4) storey A- Ownership Interest 100% Grade commercial offic
Slide 28: 38 Sydney Ave, Canberra ACT
38 Sydney Ave, Canberra ACT Tenant %1 Commonwealth 55.6% Govt. Rental guarantee 24.7% SRC Australia 17.8% Zamlod 2.0% Lease expiry profile (by income)2 Major Tenants 100% 90% % total 80% 73.3% NLA Review Expiry Option to Tenant Gross 70% (sqm) type date extend Rent 60% 50% Commonwealth Govt. 55.6% 4
Slide 29: Disclaimer
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 the ‘Fund’). This material is a su