WHY IS THIS INVESTMENT COMPANY SUCCESSFUL?

• In July 2021 we set out to solve a problem in the market. This was that everyday investors could not invest in industrial property assets unless they tied up a lot of their own capital in one property and industrial investment seemed daunting. Furthermore other funds had huge staff resources and overheads that affects shareholders’ returns. Foundering shareholders wanted a low overhead fund to maximise returns and FCF (free cash flow). We saw this as an opportunity to carve out a niche industrial property fund which provided a low capital commitment entry for investors into industrial property assets. This resulted in the establishment of Simply Industrial.

• As business owners we have proven track records on how to make decisions that produce results and we are focused on growing the property fund to $50m in industrial property assets.

PURPOSE OF THE CAPITAL RAISED:

• The capital raised will be used to acquire industrial properties that meet our core investment criteria—what we call our ‘Simple Rules’. These are typically under-rented assets or properties with structured rent increases, aligning with Simply Industrial’s goal of doubling the value of each building approximately every ten years. This strategy is designed to drive both strong cashflow and long-term capital gains for shareholders.

• The capital will also enable the entity to leverage bank debt to enhance purchasing power. For instance, raising $2 million at a 40% loan-to-value ratio (LVR) allows Simply Industrial to acquire properties worth approximately $3.33 million.

• The Directors of Simply Industrial maintain a disciplined approach, favouring low LVRs, positive cashflow, and patience—waiting for the right opportunities that align with our long-term strategy.

OUR SUCCESS TO DATE:

The success we have had in the last three years can be summarised as:

• Outperformed other funds when the market retracted from 2021 highs and massive increase in interest rates

• Raised $6.22 million in equity.

• Settled on $10.53 million of industrial property.

• Increase of NTS (Net Tangible Asset) value of the shares by 17%, from $1.00 to $1.17 as at October 2023.

• Debt raised on favourable terms similar to those offered to listed property funds.

• Immediate profitability from low overheads and a positive cashflow.

THE SIMPLY INDUSTRIAL OPPORTUNITY:

• The industrial property market is an attractive investment sector, offering access to an exceptional asset class (as outlined in the next section).

• Investors can feel confident knowing they’re investing in a relatively safe and growth-oriented category.

• Regular forecast dividend payments provide consistent income.

• Returns are comparable to – or better than – a “do it yourself” approach, without the hassle of managing the property yourself.

• The lower capital requirement offers easier entry, with the added benefit of exposure to a diversified portfolio of industrial assets.