Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — APN Property Group — Conference Presentation (June 2021)
14 slides from Dexus Convenience Retail Reit's conference presentation, June 2021
Slide 1: APN Global REIT Income Fund Webinar June 2021
A WORLD OF PROPERTY FOR INCOME APN GLOBAL REIT INCOME FUND WEBINAR JUNE 2021 1
Slide 2: APN Global REIT Income Fund – a world of opportunity for income
APN Global REIT Income Fund – a world of opportunity for income Attractive monthly income 1 ▪ Distributions paid monthly (running yield 3.86% pa as at 30 April) ▪ 17.54% pa total return since inception (1 April 2020) as at 30 April, net of fees and expenses ▪ Focus on ‘pure’ rental income delivers l
Slide 3: Experience and capability in global property securities
Experience and capability in global property securities Global Asia Australia ▪ APN Global REIT Income Fund ▪ APN Asian REIT Fund total ▪ APN AREIT Fund total return total return 17.54% pa1 return 11.57% pa1 11.08% pa1 Source: APN FM, April 2021 1. Annual since Inception .Inception date APN Global R
Slide 4: Global REITs - why now?
Global REITs - why now? Accelerating Global ✓ COVID-19 winners in select global real estate Trends ✓ Data centres, mobile towers, logistics and healthcare ✓ Preferred Securities issued by REITs Defensive Opportunities ✓ Maximised defensive income attributes, minimise volatility High, Quality Income
Slide 5: Extensive global commercial property universe
Extensive global commercial property universe The global commercial property investible universe is US$31.6 trillion 10,100 9,100 9,600 $US billion Offices Medical Centres 1,200 1,000 600 Child Care Shopping Centres North Europe Asia MEA Latin ANZ America America Industrial Single-Family 2% 4%3% Mul
Slide 6: Global REITs offer a deep and diverse opportunity set
Global REITs offer a deep and diverse opportunity set Australia Asia Global 525 33 106 Number of REITs 2,650,000 Market cap. 140,000 330,000 (A$ millions) CapitaGreen, Singapore 850,000 NO. of properties 41,000 54,000 (approx.) Concentration 68% 72% (market cap outside of 19% top 10 stocks) Prologis
Slide 7: Relative income yield and return volatility
Relative income yield and return volatility Investment Yield Comparison 3.86% 3.33% 1.75% 1.66% 1.69% 1.92% 0.10% 0.29% RBA Cash Rate Big 4 Term AU 10-yr Gov. Global Global Equities EM Equities Global REITs APN Global Deposit* Bond Corporate Index REIT Income Bonds Fund# 1 Year Standard Deviation 20
Slide 8: REIT Preferred Securities deliver attractive risk-adjusted returns
REIT Preferred Securities deliver attractive risk-adjusted returns Did not cut or suspend distributions Superior • Higher ranking than equity through COVID-19* Ranking • Investors paid first 97% 65% Lower • ~3x less volatility than Volatility their equity US REITs US REIT Preferred Securities Income
Slide 9: Portfolio positioned to quality, accelerating trends and defensive reopening
Portfolio positioned to quality, accelerating trends and defensive reopening Industrial REITs • E-commerce growth REIT Preferred • Position in capital stack Securities Retail REITs • Non-discretionary Office REITs • Non-generic Specialised REITs • Digitisation 9
Slide 10: Global REITs - compelling indicators of value
Global REITs - compelling indicators of value Current Spread to Bonds P/B Relative to Equities 1.3 7.00% 1.2 6.00% 1.1 5.00% 1.0 4.00% 0.9 3.00% 0.8 2.00% 0.7 1.00% 0.6 0.00% 0.5 Apr-05 Apr-07 Apr-09 Apr-11 Apr-13 Apr-15 Apr-17 Apr-19 Apr-21 -1.00% Rel. Value Hist Avg 10yr avg. 10Y Bond Earnings Yie
Slide 11: What does inflation and rising bond yields mean for REITs?
What does inflation and rising bond yields mean for REITs? ▪ Inflation expectations are rising “At its very core, ▪ Steepening in global yield curves commercial property is a real asset class with the ▪ Economic and consumer outlook improving ability to provide ▪ Inflation-hedging properties of REIT
Slide 12: Global property sector outlook 2021
Global property sector outlook 2021 Office Industrial Retail Residential (Mixed) (Strong) (Mixed) (Mixed) . . Data Centres Mobile Towers Healthcare Service Stations (Good) (Good) (Good) (Good) 12
Slide 13: Defensive, diversified and income focused
Defensive, diversified and income focused ▪ Income focused ▪ Monthly distributions ▪ Lower than market volatility2 ▪ SQM Research ‘Superior’ 4 Star rating3 1. As at 30 April 2021. Current running yield is calculated daily by dividing the annualised distribution rate by the latest entry unit price. D
Slide 14: Disclaimer
Disclaimer This presentation has been prepared by APN Property Group (ASX:APD) comprising APN Property Group Limited (ACN 109 846 068) and APN RE Limited (ACN 627 612 202, AFSL No. 510685) as responsible entity for APD Trust (ARSN 629 330 007) (APN) and APN Funds Management Limited (APNFM) (ACN 080
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