360 CAPITAL INDUSTRIAL FUND ARSN 099 680 252 2014 Full Year - PowerPoint PPT Presentation

360 CAPITAL INDUSTRIAL FUND ARSN 099 680 252 2014 Full Year Financial Results Presentation | 21 August 2014 1 Ashburn Road, Bundamba QLD (API) 1

Table of contents Section Appendices Balance sheet 1 Highlights A B Profit and loss statement 2 Key achievements C Operating earnings reconciliation 3 Results overview D Price Performance 4 Portfolio overview E Pro forma balance sheet 5 Post period activity F Portfolio metrics 6 Capital management Industrial property outlook G 7 Strategy H Property details 8 Outlook 2

Highlights 1 P otal FY14 Unitholder return of 17.3% pa and 27.6% pa since listing 1 T P Operating earnings per unit of 20.6 cpu in line with guidance P Distributions per unit of 18.6 cpu in line with guidance and an increase of 3.3% on pcp P Gearing reduced to 42.1% from 45.5% in pcp and significant finance cost reduction P Portfolio value increased by 10.0% 1 and NT A per unit by 13.9% on pcp P Post period: acquisitions 2 of $103.3m and debt facility extended Notes 1. The Fund listed on 12 December 2012 2. Like for like basis 3. Acquisitions of Warnervale and Townsville in July 2014 and conditional exchange of Carole Park in August 2014 3

Key achievements 2 • 96.2% 1 occupancy 2 (increased to 6.1 years post period) • Underlying 5.3 years WALE • portfolio driving 75,093sqm leased (22% of the portfolio) with an average term of 3.9 years • No single FY15 expiry represent >2.0% of portfolio income results • Portfolio values increased by 10.0% 3 • Gearing reduced to 42.1% from 45.5% • Lower debt margins reducing interest costs Responsible capital • Drawn debt fully hedged with low cost of debt of ~4.5% management • Unit buy-back implemented in Feb 14 with ~3% acquired to date • Raised $61.0m post period, significantly oversubscribed • Capital Disposal of Notting Hill and Campbellfield assets for $13.9m in line with book value HOA 4 reached post period to sell Edinburgh Parks for $4.5m • transactions and • 3,005sqm expansion of Grace Records facility complete development • Post period acquisitions 5 of $103.3m taking total assets to $469.1m partnerships Notes 1. By area 2. By income 3. Like for like basis 4. Non-binding Heads of Agreement 4 5. Acquisitions of Warnervale and Townsville in July 2014 and additional exchange of Carole Park in August 2014

Key achievements 2 • Operating EPU in line with guidance • DPU up 3.3% on pcp Strong financial • Conservative payout ratio of 90% results • NT A per unit increased from $1.94 in pcp to $2.21 per Unit • FY14 tax deferred component - ~45% • M arket capitalisation increased to $204.0m from $190.1m in pcp • Inclusion into S&P/ASX300 A-REIT Index in Sep 13 Attractive • Closing price of $2.23 as at 30 Jun 14 equates to: investment metrics • 8.3% 1 distribution yield • 9.2% 2 operating earnings yield • Strong underlying portfolio performance resulting in: • FY14 Operating EPU of 20.6cpu • FY14 DPU of 18.6cpu Summary • Greater cashflow certainty in FY15 from early renewals • Continued strong industrial property fundamentals bode well for growth Notes 1. Based on FY14 full year DPU of 18.6cpu 2. Based on FY14 full year EPU of 20.6pu 5

Results overview 3 • Statutory EPU impacted by recapitalisation (FY13), one-off items on listing (FY13) and valuations FY14 FY13 Change (FY14) Statutory net profit $41.9m $13.6m 208% • FY14 operating earnings up 73.0% due to • Statutory EPU 45.0 cpu 25.1 cpu 79% higher property income through acquisitions and fixed rental increases Operating earnings 1 $11.1m 73% $19.2m • lower finance costs 20.4cpu 1% Operating EPU 20.6cpu • FY14 DPU grew 3.3% on pcp DPU 18.6cpu 18.0cpu 3% • in line with underlying portfolio performance Payout ratio 90% 88% 2.0% • Conservative payout ratio reflects minimal capital Total assets $365.8m $347.1m 5% expenditure requirements No. assets 18 20 2 • NT A per Unit increased to $2.21 • 10.0% increase in valuations undertaken in Units on issue 91.5m 93.2m (2%) Apr 14 NTA per unit $2.21 $1.94 14% • Reduction in gearing through non-core asset Gearing 2 42.1% 45.5% (3.4%) sales and DRP proceeds Notes 1. Operating earnings is statutory net profit adjusted for amortisation of incentives and leasing fees, fair value adjustments on properties and derivatives, gains on sale of properties, relinquishment of initial and deferred fees by the Responsible Entity and one-off costs associated with the ASX listing, the unsecured notes and defence of Denison management challenge 2. Gearing is defined as total borrowings less cash divided by total assets less cash. 6

Portfolio overview 4 Leasing Activity • 82% tenant retention 1 • Proven ability to pre-emptively deal with significant medium term lease expiries leads to greater earnings visibility: FY14 Leasing Activity Tenant Address Area (sqm) Term (yrs) Rent ($’m pa) GM Holden 12-13 Dansu Court, Hallam VIC 15,333 5.0 1.1 Linfox 40-48 Howleys Road, Notting Hill VIC 11,052 3.0 1.1 Ceva Logistics 5-9 Woomera Avenue, Edinburgh Parks SA 7,807 0.3 0.6 All Power Industries 102-128 Bridge Road, Keysborough, VIC 4,601 1.5 0.3 DKSH 12-13, 14-17 Dansu Court, Hallam VIC 9,364 3.0 0.7 Hugo Boss 6 Albert Street, Preston VIC 8,929 6.0 0.9 Hills Holdings 6 Albert Street, Preston VIC 1,956 2.0 0.1 5.0 2 Elite Logistics 457 Waterloo Road, Chullora, NSW 16,051 1.6 Total 75,093 6.4 • FY14 like-for-like NPI growth of 3.0% 3 • T enant demand steady with many companies still undertaking financial and operational consolidation. Notes 1. By income 2. Elite Logistics extension of existing lease to expire 2029 3. Net Property Income - Excludes acquisitions, disposals, held for sale and expansions . Including held for sale assets is 0.3% 7

Portfolio overview 4 Current vacancy • Current vacancy limited to three core buildings Address Area (sqm) Rent ($ psm) Vacant since 5-9 Woomera Avenue, Edinburgh Parks SA 10,580 60 Dec-13 6 Albert Street, Preston VIC 1,067 66 Jul-14 102-128 Bridge Road, Keysborough, VIC 407 70 Feb-14 102-128 Bridge Road, Keysborough, VIC 396 70 Oct-13 500 Princes Highway, Noble Park VIC (office space only) 429 186 Sep-11 Total 12,879 Valuations • Portfolio revalued in Apr 14 10.0% 1 increase on 30 Jun 13 book value • WACR of 8.5% 1 down from 8.8% 1 - expecting further firming due to strong investment demand • • 3,005sqm expansion of Grace facility at Hume ACT completed Jun 14 • providing $0.3m of additional income, a $4.9 million uplift in value and 4 year lease extension to 2022 • clear benefit of Walker relationship Notes 1. On a like for like basis 8

Portfolio overview 4 Disposals • $13.9m of non-core asset disposals: • 40-48 Howleys Road, Notting Hill VIC: $9.3m in Oct 13 • 223-235 Barry Road, Campbellfield VIC: $4.6m in Apr 14 • 5-9 Woomera Avenue, Edinburgh Parks SA: $4.5m is held for sale with terms agreed and under due diligence • Proceeds from future disposals of non-core assets deployed to acquire larger assets and/or capital management initiatives Acquisitions • T otal assets of $103.3m (three properties) acquired since 30 Jun 14 • $237.1m of assets (nine properties) acquired under 360 Capital management to compliment and enhance the existing portfolio • Those assets acquired characterised by: 1 of 9.0 years • Current combined WALE • Nil vacancy 2 • Weighted average building age of 8.7 years 3 Notes 1. By income and 30 June pro-forma 2. By area 3. By value 9

Post period activity 5 Wyong Regional Distribution Townsville Distribution Centre, Greens Biscuits Facility, Carole Centre, Warnervale NSW Townsville QLD Park, QLD $69.8m Price: Price: $9.6m Price: $23.9m Building area: 54,533sqm 18,613sqm Building area: 4,726sqm Building area: Net income: $5.8m p.a. Net income: $0.8m p.a. $1.9m p.a. Net income: Cap rate: 8.25% Cap rate: 8.75% Cap rate: 8.00% WALE: 7.1 years WALE: 10.5 years WALE: 15.0 years Occupancy: 100% Occupancy: 100% Occupancy: 100% 10

Post period activity 5 Acquisitions • Acquisition of two properties fully leased to Woolworths on 7.5 year average WALE with fixed 2.5% annual rental increases for $79.4m in Jul 14 • Funded through a fully underwritten $61.0 million capital raise comprising: • a placement to institutional investors (significantly oversubscribed) • a 1 for 7.25 entitlement offer • a general offer and a new debt facility • marketed to 360 Capital’s 10,800 investors • Issue price of $2.16 per unit (current trading price of $2.33 1 ) • Acquisition of food manufacturing facility fully leased for 15 years to Green’s Biscuits for $23.9m in Aug 14 with fixed 3.25% annual rental increases • 100% debt funded (4.5% cost of debt v 7.6% acquisition yield after costs) • Gearing of 44.7% remains within target range Notes 1. As at 20 August 2014 11