Introduction Presentation April 2018

Transcription

1 Introduction Presentation April

2 Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 2

3 Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 3

4 Differentiators Why Reitway Global Benchmark Agnosticism High Conviction Calls Individual REIT and thematic calls supersede geographic calls Accessibility We have a highly accessible investment team, which our investors appreciate Experience In excess of a combined 15 years dedicated focus on global REITs Independent Advisory Committee 4

5 Independent Investment Advisory Committee Avril Stassen (Chairman) Senior Partner at Agri-Vie Investment Advisors (Pty) Ltd and SP Fund Managers (Pty) Ltd B.Acc (Hons), B.Comm (Hons), ACMA, CA(SA), CFA Penelope Dreyer-Smith B.Com(Hons), CIMA(stage 4), Diploma(Investment Analysis and Portfolio Management), CFA(level 1) Andrew Koch Founder and principal of Florin Capital Management B.Com, B.Compt (Hons), CA(SA) Tony da Silva Portfolio Manager at BlueAlpha Investment Management B.Compt (Hons), CA (SA) Craig Massey Director Branch Operations & Head of Stockbroking at Sanlam Private Wealth SA B.Acc, CA (SA) Frederic Bouchard Founder and principal of Florin Capital Management Bsc (Act Sc) Michelle Parkinson-Ismay Regional Director, BCA Research BA LLB (Stell.) Greg Rawlins CIO / CEO, Reitway Global B.Comm, Dip. Acc, CA (SA) Stephen Pratt Director at Prime Asset Managers Hedge Fund Cat IIA Key Individual 5

6 Investment Team Greg Rawlins CIO / CEO B.Comm, Dip. Acc, CA (SA) As CIO, Greg has the final responsibility of portfolio construction and has 15 years experience in the investment industry. Greg has managed the fund since inception. Grant Lowton Portfolio Manager B.Bus.Sci (Hons), CFA REIT research (UK, Europe, Asia and Australia) and portfolio construction. Martin Botha Portfolio Manager B.Comm (Hons), CFA, CIPM REIT research (US and Canada) and performance attribution. Marius du Preez Assistant Portfolio Manager B.Comm, CA (SA) Portfolio administration, Trade execution and Cash management. 6

7 Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 7

8 Reitway Global Property Products Australia Reitway Global Property Portfolio (AUD) Segregated Mandates Malta Reitway Global Property Portfolio (MLT) SICAV plc (USD, GBP & EUR) Reitway Leveraged Global Property Portfolio (MLT) SICAV plc (USD, GBP & EUR) Segregated Mandates South Africa Reitway BCI Global Property Fund (ZAR) Prime Reitway Leveraged Global Property Retail Hedge Feeder Fund (ZAR) Segregated Mandates 8

9 Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 9

10 Thematic focus for superior growth Expected AFFO Growth by Sector in 2018 Source: Raymond James 1Q18 REIT Outlook 27/03/

11 Tower REITs 11

12 Economies of scale Sample Tower Leasing Scenario Tower REITs Adding tenants and equipment results in significantly higher returns, as revenue is added with minimal incremental cost. 12

13 Source: American Tower, Overview Presentation, 1Q17 Economies of scale Macro Tower Build Drive Strong ROI (1) One Tenant Two Tenants (2) Three Tenants (2) Construction / Upgrade Costs ($ in USD) $275, Tenant Revenue $20,000 $50,000 $80,000 Operating Expenses per property $12,000 $13,000 $14,000 Gross Margin $8,000 $37,000 $66,000 Gross Margin (%) 40% 74% 83% Gross Margin Conversion Rate (%) - 97% 97% Return on Investment (3) 3% 13% 24% (1) For illustrative purposes only. Does not reflect any American Tower financial data (2) Co-locating tenants typically pay higher rents than anchor tenants on build-to-suit towers (3) Calculated as Gross Margin divided by Construction/Upgrade Costs 13

14 Single Family Rental REITs 14

15 Single Family Rental REITs o Renting has become favourable to buying post the 2008/09 crash o AMH restores and leases single family homes as investment properties. o The sector has transformed from a cottage industry to institutional ownership o Acquisitions were bought at significant discounts to current replacement costs o Offers scalability and economies of scale 15

16 Data Centre REITs 16

17 Data Centre REITs o Globally there is an insatiable demand for data storage and computing power o Companies are now more likely to be outsourcing IT infrastructure as well as business continuity/disaster recovery planning o high customer retention has led to stable cash flows and annual escalations are normally in-line with inflation 17

18 Thematic focus for superior growth We focus on themes and specific REITs where strong fundamentals drive superior free cash flow and dividend growth Dividend Growth Actual Expected REIT Country Sector American Tower US Towers 24.2% 19.8% Equinix US Data Centre 14.3% 14.6% CyrusOne Inc US Data Centre 27.3% 9.9% Invitation Homes Inc US Single Family Rentals NA 45.7% All estimates as at 23/04/2018. Source: Thomson Reuters EIKON 18

19 Thank You 19

20 Legal Disclaimer Copyright All information used in this presentation and any material referred to herein are subject to copyright and may not be reproduced or used (other than for information purposes) in any way, unless prior written permission has been granted by Reitway Global (Pty) Ltd ( Reitway ) or the appropriate copyright owner. Information and Content This presentation is intended for information purposes only and none of the information contained in this presentation constitutes investment advice or a recommendation, solicitation or offer by Reitway to buy or sell any financial product. The information contained in this presentation has been prepared without consideration of the investment objectives, financial situation or particular needs of any particular recipient. Any transactions described in this presentation may give rise to substantial risk, including the possible loss of principal value, and are not necessarily suitable for all investors. This presentation should accordingly not be considered as a substitute for the exercise of your own judgement or for obtaining independent advice based on your personal preferences and circumstances. Disclaimer Although all precautions have been made to ensure the reliability of data and information contained in this presentation, Reitway cannot guarantee the reliability thereof. Past performance referred to in this presentation is not necessarily indicative of future performance. Similarly, forecasts contained in this presentation involve risks and uncertainties which may result in future performance, outcomes and results which differ materially from such forecasts. You are accordingly cautioned not to place undue reliance on any historical data, general information or forecasts used in this presentation. Reitway accepts no liability whatsoever for any loss, damage (direct or consequential) or expense suffered by a recipient as a result of any reliance placed on any information contained in this presentation or any opinions expressed during this presentation. The views, opinions and comments reflected in the presentation represent those of Reitway, associated companies and employees. Reitway Global (Pty) Ltd Registration No: 2011/125542/07. A Financial Services Provider licensed under the Financial Advisory and Intermediary Services Act, 37 of FSP license No: