Region Group · ASX:RGN
Region — Investor Presentation (April 2020)
23 slides from Region's investor presentation, Apr 7, 2020
Slide 1: Capital Raising
CAPITAL RAISING 7 April 2020 Leura, NSW slide Not for release to US wire services or distribution in the US Kingston Plaza, TAS
Slide 2: Capital Raising Overview
CAPITAL RAISING OVERVIEW • SCA Property Group (“SCP”) is undertaking an equity raising comprising (together, the “Equity Raising”): – A fully-underwritten institutional placement to raise $250 million (the “Placement”) Equity – A non-underwritten Unit Purchase Plan to raise $50 million (the “UPP”) R
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS SCP’s portfolio delivers defensive, resilient cash flows that support secure distributions to investors Supermarket- 1 anchored retail • A significant majority of the portfolio’s tenants provide food, pharmacy/medical and other non-discretionary goods and services centres Long
Slide 4: Supermarket-Anchored Retail Centres
1 SUPERMARKET-ANCHORED RETAIL CENTRES Portfolio is weighted to non-discretionary retail and service focused tenants Portfolio Tenant Composition Tenants by Category Specialty Tenants by Category (by gross rent)1 (by gross rent)1,2 Other Retail 11% Apparel 8% 3 Specialties 52% Fresh Food/Food Woolwor
Slide 5: Long Leases to Quality Anchor Tenants
2 LONG LEASES TO QUALITY ANCHOR TENANTS Anchor tenants contribute 48% of gross rent, with all centres anchored by either Woolworths, Coles Group or Wesfarmers tenants Anchor Tenants Anchor Tenant Lease Expiry (% of Gross Rent) Number of % Gross Rent 64.3% Centres 59 / 85 33% Anchor tenant WALE is 10
Slide 6: Impact of Current Conditions
3 IMPACT OF CURRENT CONDITIONS Tenants that have been required to close or who have had their trading restricted represent ~$1.7m of SCP’s gross rental income per month Overview Monthly Gross Property Income by Tenant Category Trading Update Monthly Impact Gross from • Our supermarket-anchored centr
Slide 7: Prudent Capital Management
4 PRUDENT CAPITAL MANAGEMENT The Equity Raising strengthens the balance sheet and provides funding flexibility to pursue acquisition opportunities Overview Debt Metrics • Since the release of 1H20 results, SCP has entered into $100 million of Current 31 Dec 2019 new bilateral debt facilities (two $5
Slide 8: Material Growth Opportunities
5 MATERIAL GROWTH OPPORTUNITIES The COVID-19 pandemic may provide a unique opportunity to secure quality assets at competitive prices Convenience Based Centre Landscape Transaction Opportunities • There are approximately 1,200 Coles and Woolworths anchored neighbourhood • Over the past ten years, an
Slide 9: Proven Track Record
6 PROVEN TRACK RECORD SCP has a proven track-record of delivering consistent earnings and distributions growth • Proven asset management capabilities, through the ongoing delivery of Funds from Operations per Unit (FFOPU) (cents) strong operational performance • Successful remixing towards non-discr
Slide 10: Placement and UPP Overview
PLACEMENT AND UPP OVERVIEW • Fully underwritten Placement to raise $250 million (115.7 million units to be issued), which is ~12.3% of the pre Equity Raise units on Structure issue • Placement price of $2.16 per unit, representing an 8.5% discount to the closing price of $2.36 on 6 April 2020 • New
Slide 11: Sources & Uses of Funds and Key Metrics
SOURCES & USES OF FUNDS AND KEY METRICS Sources and Uses of Funds1,2 Use of Proceeds Sources of Funds $m • The Placement proceeds will initially be used to pay down existing debt facilities to zero ($132.0 million) with the balance of $111.5 Placement proceeds 250.0 million to be held in cash • Over
Slide 12: Timetable
TIMETABLE1 Event Date Record date for UPP 7:00pm Monday, 6 April 2020 Trading halt and announcement of Equity Raising Tuesday, 7 April 2020 Institutional Placement bookbuild Tuesday, 7 April 2020 Announcement of results of Placement and trading halt lifted Wednesday, 8 April 2020 Settlement of units
Slide 13: Appendices
APPENDICES slide 13
Slide 14: Pro-forma Balance Sheet
PRO-FORMA BALANCE SHEET Post Balance Date Pro-forma Pre- Pro-forma Post- Pro-forma Post- 1 2 3 $m 31 December 2019 Adjustments Placement Placement Placement UPP Placement and UPP Cash 3.8 - 3.8 111.5 115.3 50.0 165.3 Assets - held for sale 21.5 (21.5) - - - - - Investment properties 3,232.8 - 3,232.
Slide 15: Anchor Tenants
ANCHOR TENANTS • All of our centres are currently anchored by either 30 June 2016 30 June 2017 30 June 2018 30 June 2019 31 Dec 2019 Woolworths Limited, Coles Group Limited or Woolworths Limited Wesfarmers Limited retailers Woolworths 53 54 54 58 59 Big W 8 7 7 9 9 • We are gradually increasing our
Slide 16: Key Risks
KEY RISKS SCA Property Group’s (“SCP”) business activities are subject to risks, specific Reduced consumption, increased consumer uncertainty and government both to its investments in property and its operations, as well as of a general lock-downs and market interventions which limit non-essential s
Slide 17: Key Risks (Continued)
KEY RISKS (CONTINUED) Funding The ability of SCP to raise funds on favourable terms, or at all, for future activities is dependent on a number of factors including general economic, political, capital and credit market conditions. The inability of SCP to raise funds on favourable terms for future ac
Slide 18: Foreign Jurisdictions Selling Restrictions
FOREIGN JURISDICTIONS SELLING RESTRICTIONS This document does not constitute an offer of New Securities of the Group in New Zealand any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Securities may not be This document has n
Slide 19: Foreign Jurisdictions Selling Restrictions (Continued)
FOREIGN JURISDICTIONS SELLING RESTRICTIONS (CONTINUED) Singapore (Continued) United Kingdom This document has been given to you on the basis that you are an Neither this document nor any other document relating to the offer has been "institutional investor" (as defined under the SFA). In the event t
Slide 20: Foreign Jurisdictions Selling Restrictions (Continued)
FOREIGN JURISDICTIONS SELLING RESTRICTIONS (CONTINUED) United Kingdom (Continued) In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment profession
Slide 21: Key Terms of the Placement Agreement
KEY TERMS OF THE PLACEMENT AGREEMENT SCP has entered into a placement agreement with the Underwriter d) there is an event or occurrence, including any statute, order, rule, (“Placement Agreement”), pursuant to which the Underwriter has agreed to regulation, directive or request of any governmental a
Slide 22: Key Terms of the Placement Agreement (Continued)
KEY TERMS OF THE PLACEMENT AGREEMENT (CONTINUED) m) if a change to the CEO, the CFO, the board of directors of SCP, or the SCP also gives certain representations, warranties and undertakings to the SCP Group occurs; Underwriter and an indemnity to the Underwriter and its representatives n) the due d
Slide 23: SCA Property Group
SCA Property Group Level 5, 50 Pitt Street Sydney NSW 2000 Tel: (02) 8243 4900 Fax: (02) 8243 4999 www.scaproperty.com.au Disclaimer This Presentation has been prepared by Shopping Centres Australasia Property Group RE Limited (ABN 47 158 809 851) (SCPRE) as responsible entity of Shopping Centres Au