Introduction Presentation April 2018 1
Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 2
Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 3
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
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
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
Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 7
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
Agenda 1 Business Overview 2 Products 3 Interesting REITs pioneered in the Reitway Portfolio 9
Thematic focus for superior growth Expected AFFO Growth by Sector in 2018 Source: Raymond James 1Q18 REIT Outlook 27/03/2018 10
Tower REITs 11
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
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) $275,000 - - 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
Single Family Rental REITs 14
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
Data Centre REITs 16
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
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 13-17 18-19 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
Thank You 19
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