Charter Hall Group · ASX:CHC
Charter Hall — Shareholder Meeting (November 2012)
47 slides from Charter Hall's shareholder meeting presentation, Nov 8, 2012
Slide 1: Chairman's Address: Introduction
Charter Hall Group Annual General Meeting 2012 Chairman’s Address For personal use only 1. INTRODUCTION Good afternoon. It is my pleasure to welcome you all to the 2012 Annual General Meeting of the Charter Hall Group. My name is Kerry Roxburgh and I am the Chairman of the Charter Hall Group Board o
Slide 2: Chairman's Address
We will then move to the formal business of the meeting and the resolutions for your consideration. At the conclusion of the meeting we look forward to joining you for refreshments in the foyer. For personal use only Securityholders holding a yellow or red attendance card will have the opportunity t
Slide 3: Chairman's Address: FY12 Review
FY12 saw an 8% reduction in net operating expenses; improving our property funds management EBITDA margin (before specific items) by 420 basis points to 31.8% and delivering $23m in property funds management earnings for the year. It was pleasing to see active property and debt management of the co-
Slide 4: Chairman's Address: Organisation and People
As part of the restructure, Charter Hall commissioned an externally facilitated organisational review that defined our future people needs. People are our greatest asset and it is they who deliver our competitive advantage and resultant business success. From this review we were able to identify a n
Slide 5: Chairman's Address: Outlook
Charter Hall is one of very few, if not the only, Australian property companies attracting property investors from each of the listed, wholesale and retail capital markets. Charter Hall is a diversified business, with a hard won track-record in the property sector. Our business is diversified, with
Slide 6: Charter Hall Group 2012 Annual General Meeting
8 November 2012 For personal use only Charter Hall Group 2012 Annual General Meeting
Slide 7: Board of Directors
Charter Hall Group Board of Directors For personal use only Kerry Roxburgh Chairman and Independent Non-Executive Director Roy Woodhouse Anne Brennan Deputy Chairman Independent Non-Executive Independent Non-Executive Director Director David Deverall Colin McGowan Peter Kahan Independent Independent
Slide 8: Agenda
For personal use only Agenda 1 Chairman’s address: Kerry Roxburgh Joint Managing Directors’ address: 2 David Harrison and David Southon 3 Items of Business 2
Slide 9: Kerry Roxburgh, Chairman
For personal use only Kerry Roxburgh Chairman
Slide 10: Group Overview: Highlights for financial year 2012
Group Overview Highlights for financial year 2012 For personal use only Statutory profit after Operating earnings Operating earnings Total funds under tax before specific items after specific items management $16.7 million $63.6 million $54.8 million $8.9 million Net tangible assets Equity secured s
Slide 11: Group Overview: Charter Hall Office Trust
Group Overview Charter Hall Office Trust For personal use only Proposal by a Consortium to acquire all units in CQO, other than those held by Charter Hall, was approved at the CQO unitholder meeting in March 2012 CQO was de-listed from the Australian Securities Exchange on 1 May 2012 and renamed
Slide 12: Committed to corporate governance
Group Overview Committed to corporate governance For personal use only Independent Chairman Board has majority of Non-Executive Directors Across the Group, Responsible Entity Boards and Fund Investment Committees are chaired by an Independent Director or Member, and consist of a majority of In
Slide 13: Providing a scalable business that supports our clients and people
Group Overview Providing a scalable business that supports our clients and people For personal use only 7
Slide 14: David Harrison and David Southon, Joint Managing Directors
For personal use only David Harrison and David Southon Joint Managing Directors
Slide 15: Results Summary: Key achievements FY12
Results Summary Key achievements FY12 For personal use only Increase in operating earnings before specific items to 21.5cps, up 4.4% Increase in property co-investment yield to 7.1%, up from 6.4% Growth in Australian FUM platform of 11% pa over the past 2 years Secured over $1bn in equity du
Slide 16: Results Summary: Another active year
Results Summary Another active year For personal use only Investment management Secured over $1bn equity and acquired $0.5bn of property assets Property management and leasing services Managed fund portfolio comprising 2.3m sqm of lettable area Portfolio generates gross rental income of $817m
Slide 17: Results Summary: Solid securityholder returns
Results Summary Solid securityholder returns For personal use only Total securityholder return FY12: 14.6% Distribution per security growth Solid performance over 1 and 3 years 18.20 to 5 November 20121 16.50 12.55 S&P/ASX 200 S&P/ASX 200 Property Charter Hall Accumulation Index Accumulation Index S
Slide 18: Results Summary: Improved quality of earnings
Results Summary Improved quality of earnings For personal use only EBITDA of $65.2m1, up 5.4% from $61.9m 89% of earnings generated from 97% of earnings from core sector property annuity style income investments and property funds management $39.9m $37.4m Property Investment 61% FY11 FY12 $23.3m $20
Slide 19: Our strategy
Group Overview Our strategy For personal use only Our strategy is to access, deploy and manage equity that is invested into core Australian real estate sectors to create value and provide growing income and capital returns for investors. Access to multiple equity sources including listed, pooled who
Slide 20: Investment strategy
Group Overview Investment strategy For personal use only Our investment strategy, focusing on core property asset sectors, will endure macroeconomic cycles and generate growing income and capital returns, consistent with the investment appetite of investors in the real estate asset class. RETAIL OFF
Slide 21: Australian FUM platform growth
Group Overview Australian FUM platform growth For personal use only Group FUM has grown to $9.6bn today Good transactional activity with PFA, Bay Village, Bunning's and CQR capital raising completed during the current financial year Since year end CHC has secured $516m of equity across Listed,
Slide 22: Expertise across risk/return spectrum
Group Overview Expertise across risk/return spectrum For personal use only Charter Hall Funds1 Risk vs. Return Profile Return 20% + $0.5bn $0.5bn Real Estate Sectors Development Retail 15 - 17% Office 11 – 14% $0.7bn $1.5bn Industrial Wholesale Diversified Pooled 9 – 11% $2.0bn $3.0bn $1.9bn Listed
Slide 23: Activity since June 2012: Bay Village
Activity since 30 June 2012 Wholesale Partnerships – Bay Village For personal use only Charter Hall managed wholesale mandate acquired $164m Bay Village Shopping Centre on the Central Coast NSW reflecting an 8% capitalisation rate Charter Hall co-invested 20% equity alongside overseas pension fu
Slide 24: Activity since June 2012: Bunnings Acquisition
Activity since 30 June 2012 Wholesale Partnerships – Bunnings Acquisition For personal use only Charter Hall managed wholesale partnership acquired $207m Bunnings portfolio of seven assets diversified across Australia Charter Hall co-invested 10% equity alongside Telstra Super Fund client’s 90%
Slide 25: Activity since June 2012: Direct Business Growth
Activity since 30 June 2012 Direct (Retail and SMSF Investors) Business Growth For personal use only PFA Management Rights Charter Hall acquired management rights to the PFA Diversified Property Trust (PFA) in August 2012 PFA DPT is a 13 asset $422m portfolio diversified across Australia 4,223
Slide 26: Positive Market Outlook: Property Yield Premium
Positive Market Outlook Property Yield Premium to Cash and Bond Rates For personal use only Swap markets pricing in a 72bps reduction in cash rate RBA DATE RATE CHANGE Today 3.25 6 Nov 2012 3.09 - 16 4 Dec 2012 2.98 - 27 5 Feb 2013 2.83 - 42 5 Mar 2013 2.72 - 53 2 Apr 2013 2.67 -58 7 May 2013 2.67
Slide 27: Positive Market Outlook: Australian REITs versus US REITs
Positive Market Outlook Australian REITs versus US REITS For personal use only The performance of the NAREIT index against the AREIT index shows the potential impact on REIT valuations in a low interest rate environment Despite Australia substantially outperforming the US economically, US proper
Slide 28: Outlook: FY13 earnings guidance
Outlook FY13 earnings guidance For personal use only Subject to unforeseen events, we expect : FY13 operating earnings to be in the range of 22.5 to 23.0 cps, representing 5% to 7% growth over FY12 22
Slide 29: Procedural Matters
For personal use only Procedural Matters
Slide 30: Procedural Matters
Procedural Matters Procedural Matters For personal use only If there are any Securityholders who are eligible to vote who have not received their yellow voting card, please see a representative from Link Market Services at the registration desk Securityholders holding a red card are not eligible
Slide 31: Item: Annual Report
Procedural Matters Item 1 For personal use only Item 1 – Annual Report – To receive and consider the Annual Report, consisting of the Financial Report, Directors’ Report and Auditors Report for the financial year ended 30 June 2012 Note: There is no requirement for Securityholders to approve the
Slide 32: Resolutions
Procedural Matters Resolutions For personal use only Resolutions: Resolutions 2.1, 2.2, 2.3, and 3 are proposed as ordinary resolutions of Charter Hall Limited (CHL) and will be approved if passed by at least 50% of votes cast by securityholders entitled to vote on the resolution. Resolutions 4.1 an
Slide 33: Resolution 2.1
Procedural Matters Resolution 2.1 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr David Southon, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL” Resolution 2.1 is an ordinary resolu
Slide 34: Resolution 2.1 - Proxies
Procedural Matters Resolution 2.1- Proxies For personal use only FOR 241,527,052 98.88% OPEN: 2,434,621 1.00% AGAINST: 290,920 0.12% ABSTAIN: 356,750 28
Slide 35: Resolution 2.2
Procedural Matters Resolution 2.2 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr Peter Kahan, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL” Resolution 2.2 is an ordinary resoluti
Slide 36: Resolution 2.2 - Proxies
Procedural Matters Resolution 2.2- Proxies For personal use only FOR 243,459,306 98.86% OPEN: 2,434,639 0.99% AGAINST: 383,010 0.16% ABSTAIN: 213,000 30
Slide 37: Resolution 2.3
Procedural Matters Resolution 2.3 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr David Deverall, appointed as an additional Director of CHL by the Board, is elected as a Director of CHL” Resolution 2.3 is an ordinary resolution of CHL,
Slide 38: Resolution 2.3 - Proxies
Procedural Matters Resolution 2.3- Proxies For personal use only FOR 243,520,775 98.90% OPEN: 2,434,639 0.99% AGAINST: 286,182 0.12% ABSTAIN: 248,359 32
Slide 39: Resolution: Remuneration Report
Procedural Matters Resolution 3 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: "That the Remuneration Report included in the Annual Report for the year ended 30 June 2012 be adopted.“ Resolution 3 is an ordinary resolution of CHL, and will be ap
Slide 40: Resolution - Proxies
Procedural Matters Resolution 3 - Proxies For personal use only FOR 239,674,327 98.89% OPEN: 2,437,339 1.01% AGAINST: 258,528 0.11% ABSTAIN: 705,500 34
Slide 41: Resolution 4.1
Procedural Matters Resolution 4.1 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 346,847 perfo
Slide 42: Resolution 4.1 - Proxies
Procedural Matters Resolution 4.1 - Proxies For personal use only FOR 239,626,014 98.88% OPEN: 2,428,866 1.00% AGAINST: 281,564 0.12% ABSTAIN: 739,250 36
Slide 43: Resolution 4.2
Procedural Matters Resolution 4.2 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 346,847 perfo
Slide 44: Resolution 4.2 - Proxies
Procedural Matters Resolution 4.2 - Proxies For personal use only FOR 239,643,418 98.88% OPEN: 2,432,266 1.00% AGAINST: 279,510 0.12% ABSTAIN: 720,500 38
Slide 45: Questions
For personal use only Questions
Slide 46: Disclaimer
Charter Hall Group Disclaimer For personal use only This presentation has been prepared by Charter Hall Group (Charter Hall Limited (ABN 57 113 531 150) and Charter Hall Funds Management Limited (ABN 31 082 991 786) (AFSL 262861) as the Responsible Entity for Charter Hall Property Trust (ARSN 113 33
Slide 47: Further information
For personal use only Further information David Southon David Harrison Joint Managing Director Joint Managing Director +61 2 8908 4025 +61 2 8908 4033 david.southon@charterhall.com.au david.harrison@charterhall.com.au Nick Kelly Paul Altschwager Head of Investor Relations Chief Financial Officer +61
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