Presentation - Targeting Strong Total Returns

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Managed by

HMC Funds Management Limited

(ACN 105 078 635; AFSL 237257) as responsible entity of the

HomeCo Daily Needs REIT (ARSN 645 086 620)

ASX RELEASE

12 November 2021

PRESENTATION TO RETAIL BROKER NETWORKS

HomeCo Daily Needs REIT (ASX: HDN) provides the attached presentation which will be delivered to a number of retail broker networks today.

-ENDS-

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For further information, please contact:

Investors

Misha Mohl

Group Head of Strategy & IR [phone] [e-mail]

Media

John Frey

Corporate Communications Counsel [phone] [e-mail]

Will McMicking

Group Chief Financial Officer [phone] [e-mail]

For

Authorised for release by the Board of the Responsible Entity

About HomeCo Daily Needs REIT

HomeCo Daily Needs REIT is an Australian Real Estate Investment Trust listed on the ASX with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services. HomeCo Daily Needs REIT aims to provide unitholders with consistent and growing distributions.

19 Bay Street	HMC Funds Management Limited
Double Bay NSW 2028	(ACN 105 078 635; AFSL 237257) as
1300 466 326	responsible entity of the HomeCo Daily
[e-mail]	Needs REIT (ARSN 645 086 620)

Daily Needs

REIT

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Hills Super Centre (NSW)		HomeCo Hawthorn East (VIC)

PRESENTATION TO RETAIL BROKER NETWORKS…..

12 November 2021….….

AUSTRALIA'S LEADING DAILY NEEDS REIT

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Daily Needs

REIT

Highlands Hub (NSW)		Victoria Point (QLD)

1. Overview of the Merged Group

Australia's Leading Daily Needs REIT

Daily Needs

REIT

Merger provides significant scale and enhanced capability to unlock value from a highly strategic landbank

			Platform Overview				Transaction Overview
		Key portfolio metrics
only					✓ Agreed merger between HomeCo Daily Needs REIT (HDN) & Aventus Group (AVN)
		Portfolio value1		$4,064m
					✓ Unanimously recommended by both the HDN and AVN Boards
						Overview
						✓ AVN Board and AVN's largest securityholder Brett Blundy Retail Capital Pty Ltd
		Landbank		2.5m sqm			(BBRC) intend to vote their 29.3% collective interest in favour of the Merger7
		WACR1		5.85%			✓ Consideration represents implied value of $3.828 per AVN security, comprising:
use				Consideration	‒ 2.200 HDN units per 1 unit in Aventus Retail Property Fund (ARPF)
			‒ $0.285 cash or 0.038 HMC securities per 1 share in Aventus Holdings Ltd (AHL)
		WALE2		5.3 years			✓ 15.3% premium to undisturbed AVN security price8
		Occupancy3		99%			✓ Estimated HDN FY22 FFO/unit10 accretion of 4.0% and AVN FY22 FFO/security10
						Impact9	accretion of 3.9%
						✓ Combined entity (Merger Group) gearing to be approximately 34.5%11, within target
		Fixed WARR2,4		3.6%			gearing band of 30-40%
		Cash collection (FY21)5	98%			▪ First court hearing: Mid December 2021
						Indicative	▪ Dispatch of scheme booklet to AVN securityholders: Mid December 2021
		Average gross rent6	$331/sqm		timetable	▪ Scheme meeting: Late January 2022
				▪ Implementation date: Mid-February 2022
	Source: IRESS as at 15-Oct-21. Notes: 1. Adjusted to reflect a 100% ownership of McGraths Hill and the post balance date disposal of MacGregor. 2. By gross income for signed leases for Merged Group and signed MOU's for HDN. 3. By GLA. Includes rental guarantees for HDN. Excluding
	rental guarantees, Occupancy remains at 99%. 4. Weighted average rent reviews on 72% of Merged Group tenants that are contracted under fixed escalation rental agreements. 5. Weighted average cash collection for AVN and HDN. 6. Merged Group weighted by GLA. 7. In respect of the AVN
	Board, in the absence of a superior proposal and subject to an Independent Expert opining that the Merger is in the best interests of AVN securityholders. In respect of BBRC, in the absence of a superior proposal, and subject to the conditions in clauses 3.1(a) (FIRB), (i) (No HDN Prescribed
	Occurrence) and (k) (No HDN Material Adverse Change) in the SID being satisfied and not waived by AVN prior to the AVN securityholder meetings. 8. Based on 15-Oct-21 closing price of $1.605 HDN, $7.50 HMC and $3.31 AVN, being the business day prior to announcement of the Merger. 9.
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	HDN FFO/unit based on guidance from its Sep-21 equity raising; AVN FFO/security based on standalone FY22 management forecasts for recurring FFO/unit of 20.3 cps; pro forma impact assuming the merger has occurred on 1-Jul-21. 10. On a full year basis. Estimates have been solely
	prepared by HMC Funds Management Limited (HFML) for the purposes of this presentation. AVN takes no responsibility for such estimates, and to the maximum extent permitted by law, disclaims all liability for, such estimates. 11. Assumes $65m of transaction costs between HDN and AVN	2
	including a $22.3m acquisition fee to be paid in scrip.
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Enhanced Growth Opportunity

Clear strategy to enhance income security and growth to drive strong total returns

Daily Needs

REIT

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MODEL PORTFOLIO		STRONG GROWTH OUTLOOK
Enhance income security & diversification		Unlock development pipeline

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• Accelerate tenant remixing towards HDN's model portfolio with focus on daily needs and health uses
• • In-depthgap analysis has identified >80 remixing opportunities (refer p.15)
• Extend Merged Group portfolio WALE and identify opportunities to leverage tenant relationships across combined portfolio
• Leverage enhanced tenant diversification, scale & credit profile to improve debt tenor, diversification and hedging arrangements and obtain investment grade credit rating

				Model Portfolio
	~50%			~30%			~20%
			Large Format			Health &
	Daily needs
			Retail			Services

• Accelerate unlocking of value enhancing brownfield and larger scale development opportunities across the combined asset base
• Leverage development track record and the combined group's increased scale to deliver enhanced earnings and
  NTA growth
• Opportunity rich 2.5m sqm landbank in high population growth markets with flexible zoning
• • 38% site coverage across the portfolio
  • $150m+ of brownfield developments3 and $300m+ of major developments identified3
  • Targeting $60m+ of capex p.a 4 at 7%+ ROIC5

~4% FFO accretive for HDN & AVN1	Embedded valuation upside	Eligible for ASX200 index inclusion
On-market transactions highlight potential
✓	with pathway towards ASX100 index
✓ HDN FY22 FFO: 8.9 cpu.	for further cap rate tightening
inclusion
✓ AVN FY22 FFO: 21.1 cps2	(refer p.16-17)

Notes: 1. Refer to slide 11 of the investor presentation released on 18 October 2021. 2. AVN FFO/security based on standalone FY22 management forecasts for recurring FFO/unit of 20.3 cps 3. Estimate only and subject to	3
investment committee and other approvals. 4. From FY23 onwards. 5. Cash yield on cost.
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