Dexus Convenience Retail REIT · ASX:DXC

Dexus Convenience Retail REIT — APN Property Group — 2019 Australian Microcap Investment Conference

18 slides from Dexus Convenience Retail REIT's conference presentation, Oct 23, 2019

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION 23 OCTOBER 2019 www.apngroup.com.au ASX Code: APD

  2. Slide 2: APN Property Group Overview

    APN Property Group Overview APN Property Group Video https://youtu.be/YeC01KvX0iA 2

  3. Slide 3: APN Property Group: specialist real estate investment manager

    APN Property Group: specialist real estate investment manager ▪ Exclusive focus on commercial real estate ▪ ‘Property for income’ investment philosophy $2.9 BILLION ▪ Focus on reliable cash rental income streams ESTABLISHED 1996 FUM ▪ Active management approach ▪ Investment experience and expertise

  4. Slide 4: How does APN generate its earnings?

    How does APN generate its earnings? Investors Management services Co-investments Funds Fees Investment income Property Investments 4

  5. Slide 5: Group and funds overview

    Group and funds overview As at 30 June 2019 FUNDS UNDER MANAGEMENT CO-INVESTMENTS & CASH $2,929 MILLION $126 MILLION NET TANGIBLE ASSETS APN CONVENIENCE REAL ESTATE APN INDUSTRIA REIT RETAIL REIT DIRECT PROPERTY CASH CO-INVESTMENTS SECURITIES $744 MILLION $359 MILLION $142 MILLION $16 MILLION $127 M

  6. Slide 6: What do our products do?

    What do our products do? PROPERTY FOR INCOME ✓ Real assets ‘bricks and mortar’ ✓ Quality businesses as tenants ✓ Cash rental income ✓ Relatively high cash distribution yields ✓ Reliable income streams ✓ Relatively low levels of debt ✓ Long term leases

  7. Slide 7: How is commercial property as an income investment?

    How is commercial property as an income investment? AUSTRALIAN ALL PROPERTY RETURNS Annual returns on quarterly periods Source: PCA / MSCI 7

  8. Slide 8: What's driving our business?

    What’s driving our business? Attractive Industry Dynamics… Australian superannuation assets $2.8 trillion1 and growing 1 Source: Rice Warner 2018 2 Source: Deloitte Dynamics of the Australian Superannuation System November 2015 8

  9. Slide 9: What's driving our business?

    What’s driving our business? Need for retirement income… 9

  10. Slide 10: What's driving our business?

    What’s driving our business? Strong and growing demand for income-orientated investment products… Approximate investment yield comparisons1 7.10% 6.51% 6.20% 5.78% 4.87% 0.75% Cash rate APN Asian REIT Fund APN AREIT Fund APN Industria REIT APN Convenience Retail APN Regional Property REIT Fund 1 Dif

  11. Slide 11: APN Industria REIT

    APN Industria REIT Leading office and industrial property portfolio ▪ Focus on providing productive and cost effectives workspaces to business across Australia ▪ Objective of delivering strong and growing cash income generation ▪ Major capital city focus on Australia’s Eastern seaboard ▪ Approximate

  12. Slide 12: APN Convenience Retail REIT

    APN Convenience Retail REIT Long lease term, non-discretionary retail focus ▪ Solely focused on non-discretionary, convenience retail properties ▪ Services stations leased to Woolworths / EG Group, 7-Eleven, Viva Energy, Puma Energy and others ▪ Listed on ASX by APN in 2017 ▪ Successfully completed

  13. Slide 13: APN Asian REIT Fund

    APN Asian REIT Fund Listed Asian commercial real estate ▪ Asian REIT Fund $45 million of FUM at 30 June 2019, up 88% ▪ Delivers APN’s Property for Income investment process into growing Asian commercial property markets – Singapore, Hong Kong, Tokyo ▪ Substantial, multi-generation growth potential i

  14. Slide 14: Sustained business, profit and dividend growth

    Sustained business, profit and dividend growth Recurring Income Growth Total Shareholder Return $4,000 $3,232 ​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​​ ​ ​ ​ ​ ​ ​ ​ ​ ​​ ​ ​ ​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $3,000 ​ ​ ​ ​ ​ ​ ​ ​ ​​ ​ ​ ​​ ​ ​ ​ ​ ​​ ​

  15. Slide 15: Income Statement - strong operating earnings growth

    Income Statement - strong operating earnings growth Income Statement ($000s) FY2019 FY2018 Change FY2019 Net Income breakdown Funds management fees 15,038 14,195 ▲ 6% Performance & transaction fees 374 670 ▼ 44% Asset & project management fees 269 127 ▲ 112% Performance & Registry & other fees 2,289

  16. Slide 16: Balance Sheet – well capitalised for future growth

    Balance Sheet – well capitalised for future growth Balance Sheet ($000s) June 2019 Cash1 15,672 Co-investments 127,472 Investment properties (inc held for sale) - Other assets 5,950 Intangible assets 1,756 Total assets 150,850 Trade payables, tax & provisions 17,036 Borrowings 6,004 Net Assets 127,8

  17. Slide 17: Market valuation metrics

    Market valuation metrics1 Forecast FY2020 distribution yield of 6.3%1 Market implied value of funds management Company book value (Net tangible assets) 60.0 platform of 9.2 cents per share or $30.8m $126.1m or 40.2 cents per share based on $2.9bn FUM = 1.05% 50.0 9.8 40.0 A$ cents per share (3.5) 5.

  18. Slide 18: Contact details

    Contact details Tim Slattery Chief Executive Officer +613 8656 1000 +61400 444 864  tim.slattery@apngroup.com.au Follow us… @apngroup APN Property Group Limited APN Property Group Limited apnpropertygroup Level 30,101 Collins Street, http://blog.apngroup.com.au Melbourne, Vic 3000 apngroup.com.au a

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