360 Capital Industrial Fund (ASX:TIX) is a listed AREIT focussed exclusively on Australian passive industrial property investment. The Fund is included in the ASX/S&P 300.
TIX has a clearly defined strategy and investment focus.
TIX will invest in:
· Generic industrial/logistics property - $15m to $40m range
· Core industrial locations with a proven depth in tenant demand
· No development exposure
· No offshore exposure
TIX comprises a diversified industrial portfolio of 19 properties with a combined value of $330m situated in established industrial markets in NSW, VIC, QLD, SA, WA & ACT. The portfolio has a high occupancy of 98% and a WALE of ~5.0 years
The Fund has a simple and transparent capital structure with a single line of senior debt through NAB with a $180 million facility limit expiring in December 2015 and an LVR covenant of 55% and an ICR covenant of 1.6x. Gearing is ~45% and is within the Fund’s target gearing range of 40% to 50% commensurate with the vehicles simple and passive structure when compared to our trading peers.
TIX is an externally managed trust and it outsources its property management function, however maintains the key tenant relationships in order to manage and control leasing risk. The 360 Capital team comprises an experienced and aligned management team with an average of over 16 years’ experience in the industrial and commercial property industry.
The manager, 360 Capital Group Limited (ASX:TGP) is a property investment and funds management group that concentrates on the strategic investment and active investment management of property and property related assets. 360 Capital manages 10 investment vehicles holding assets valued at more than $850m on behalf of over 9,000 investors.
TIX provides the investor with:
· An attractive distribution yield currently circa 9%, which is well above the current sector average
· Quarterly distributions with a high tax deferred component
· Exposure to an AREIT within the ASX/S&P 300 index with a pure focus on Australian industrial property through a diversified portfolio of generic industrial properties
· Cashflows supported by stable rents underpinned by long leases with fixed rental increases
· Strong industry drivers
· Clearly defined, achievable and proven strategy
· Experienced and aligned management team