Dexus Convenience Retail REIT · ASX:DXC
Dexus Convenience Retail REIT — APN Property Group — APN GRIF Webinar (November 2020)
20 slides from Dexus Convenience Retail REIT's conference presentation, November 2020
Slide 1: APN Global REIT Income Fund
A WORLD OF PROPERTY FOR INCOME APN GLOBAL REIT INCOME FUND NOVEMBER 2020
Slide 2: APN Global REIT Income Fund – a world of opportunity for income
APN Global REIT Income Fund – a world of opportunity for income Global commercial property: reliable and growing source of income ▪ Contracted rental income streams: relatively low risk cash flow from high quality global real estate portfolios ▪ Income growth opportunity: continuing urbanisation tre
Slide 3: Experience and capability in global property securities
Experience and capability in global property securities Europe and North America Asia Australia ▪ Regional Adviser David Kruth (30yrs exp.) ▪ Since 2011 ▪ Since 1998 ▪ Same income focused investment approach ▪ APN Asian REIT Fund (est 2011), total ▪ APN AREIT Fund (est 2009), total return ▪ Speciali
Slide 4: Why we're launching the Global REIT Income Fund now?
Why we’re launching the Global REIT Income Fund now? Current market conditions suit our active, income focused approach and present an attractive opportunity for long term investors • Currently a range of opportunities to invest into select global real estate sectors likely to benefit from accelerat
Slide 5: An Income Investor's Case for Global Commercial Property
AN INCOME INVESTOR’S CASE FOR GLOBAL COMMERCIAL PROPERTY 5
Slide 6: High relative annual income yield as at 9th November
High relative annual income yield as at 9th November Investment Yield Comparison 4.41% 4.08% 2.20% 2.05% 1.55% 0.78% 0.64% 0.10% RBA Cash Rate Big 4 Term AU 10-yr Gov. Global Corporate Global Equities EM Equities Global REITs Index APN Global REIT Deposit* Bond Bonds Income Fund# #Current running yi
Slide 7: Earnings yield spread to government bonds is elevated
Earnings yield spread to government bonds is elevated Current Spread by Market 10Yr. Time Series 7.00% 7.00% 6.00% 6.00% 5.00% 4.00% 5.00% 3.00% 4.00% 2.00% 1.00% 3.00% 0.00% 2.00% -1.00% 10Y Bond Earnings Yield Spread GREIT Earnings Yield Spread 10Y Average Source: UBS Research, APN Funds Managemen
Slide 8: Extensive global commercial property universe
Extensive global commercial property universe The global commercial property investible universe is US$30.3 trillion $US billion 9,600 8,900 8,800 Offices Medical Centres 1,200 1,200 600 Child Care Shopping Centres North Europe Asia MEA Latin ANZ America America Industrial Single-Family 4% 2% 4% Mul
Slide 9: Global REITs offer a deep and diverse opportunity set
Global REITs offer a deep and diverse opportunity set Australia Asia Global 547 188 Number of REITs 33 2,920,000 Market cap. 210,000 290,000 (A$ millions) CapitaGreen, Singapore 875,500 NO. of properties 41,000 50,000 (approx.) 68% 76% Concentration (market cap outside of 19% top 10 stocks) Prologis
Slide 10: APN Global REITs Investment Focus
APN GLOBAL REITS INVESTMENT FOCUS 10
Slide 11: Portfolio Metrics
Fund attributes The Fund aims to provide a high relative income yield with lower relative volatility while preserving the real value of investment over the investment period North America Asia Portfolio* Portfolio Metrics* ~68% Singapore, Japan, USA, Canada ~18% Hong Kong Stocks 49 Region Oceania Eu
Slide 12: Equity REITs
Equity REITs Industrial Logistics Properties Trust Owner of industrial and logistics properties located North across the U.S. mainland and Hawaii. What we like: America ▪ High quality portfolio including “built-to-suit” assets fit for tenant use and with a low average age ▪ Close to fully occupied w
Slide 13: Equity REITs
Equity REITs Keppel DC REIT Owner of data centres located in ten cities within eight countries across the Asia Pacific and Europe regions Asia What we like: ▪ Specialised portfolio exposed to growing global trends and demand in data storage ▪ Alignment to established sponsor with demonstrated access
Slide 14: REIT Preferred Securities – Delivering attractive income
REIT Preferred Securities – Delivering attractive income REIT Preferred Securities offer investors a higher level of income return stability than common equity dividends, capital growth potential and with priority of claim Percentage that did not cut or suspend • Preferred Securities have a higher d
Slide 15: REIT Preferred Securities
REIT Preferred Securities UMH Properties Series D Preferred securities issued by UMH US Equity North What we like: ▪ UMH US Equity is the only US MH REIT preferred America securities issuance ▪ Trades at/around par value, attractive yield premium to equity and with priority of claim Nashville, TN –
Slide 16: High quality, defensive focus on accelerating structural trends
High quality, defensive focus on accelerating structural trends • Global e-commerce growth Industrial REITs • Supply chain resilience • Improved position in capital stack REIT Preferred • Asset, earnings coverage Securities • Management track record • Non-discretionary, grocery Retail REITs • Fuel b
Slide 17: Covid-19 and Global Real Estate
Covid-19 and Global Real Estate Realities of ▪ Societies globally have been progressively subjected to varying degrees of restrictions on Lockdown physical movement and interaction in response to the COVID-19 health crisis. Economic ▪ In response government around the world have enacted fiscal polic
Slide 18: Why consider investing in APN's Global REIT Income Fund?
Why consider investing in APN’s Global REIT Income Fund? 1. Relatively high, defensive income at attractive valuations 2. Deeper and more diverse opportunity set 3. Diversification benefits 4. Exposure to accelerating global trends 18
Slide 19: Defensive, diversified and income focused
Defensive, diversified and income focused Current running yield ▪ Income focused 4.41 As at 9 November 2020 % pa 1 ▪ Monthly distributions ▪ Lower than market volatility2 ▪ SQM Research ‘Superior’ 4 Star rating3 1. As at 9 November 2020. Current running yield is calculated daily by dividing the annu
Slide 20: 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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