Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — FY2017 Earnings Presentation
33 slides from Charter Hall Long Wale Reit's earnings presentation, Aug 18, 2017
Slide 1: Charter Hall Long WALE REIT FY17 Results
For personal use only Bunnings, South Mackay, Queensland Australian Tax Office, Adelaide, South Australia Coles Distribution Centre, Perth, Western Australia 18 August 2017 Charter Hall Long WALE REIT FY17 Results
Slide 2: Agenda
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Agenda For personal use only 1. FY17 REIT & portfolio highlights 5 2. Financial performance 12 3. Property acquisitions 17 4. FY18 earnings guidance & REIT simplification update 22 5. Additional information 25 Avi Anger Kerri L
Slide 3: CLW overview
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 CLW overview For personal use only Leading Diversified ASX listed Strategy Australian portfolio REIT manager • Provide investors with stable • 80 Australian properties • Broad appeal via inclusion in • Experienced and aligned a
Slide 4: Delivering on strategy
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Delivering on strategy For personal use only Provide investors with stable and secure income and targeting income and capital growth Strategy through an exposure to long WALE properties Grow the portfolio across multiple real e
Slide 5: FY17 REIT & portfolio highlights
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 FY17 REIT & portfolio highlights For personal use only Australian Taxation Office, Adelaide, South Australia
Slide 6: Key highlights
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Key highlights FY171 highlights For personal use only Financial performance Portfolio performance Capital management Operating EPU of 11.8 years WALE 29.9% gearing 16.2 cents 100% occupancy within target range of 25% – 35% 1.5%
Slide 7: Portfolio snapshot
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Portfolio snapshot For personal use only Portfolio snapshot Portfolio by sector Jun 20171 At listing Retail Office Number of properties 80 66 25% 27% Property valuation (A$m) 1,397.2 1,253.4 Weighted Average Capitalisation Rate
Slide 8: Tenant diversification
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Tenant diversification For personal use only • Diversified tenant base with 15 high quality tenants across various industries and business sectors Major tenants1 Woolworths / ALH 27.5% Australia Post 3.5% Australian Tax Office
Slide 9: Industry diversification
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Industry diversification For personal use only • Portfolio underpinned by long leases to tenants across 10 diverse business industries • The vast majority of tenant industries are non-discretionary Tenant industries1 Food & liq
Slide 10: Lease expiry profile
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Lease expiry profile Long dated portfolio WALE of 11.8 years1 For personal use only • First major expiry is approximately 4 years away in FY21 • 66% of portfolio does not expire until more than 10 years from reporting date • WA
Slide 11: Geographic diversification
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Geographic diversification Highly diversified by geography and real estate sector1 For personal use only 80 assets comprising office, industrial and retail properties • Increased weighting to Eastern Seaboard since IPO located
Slide 12: Financial performance
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Financial performance For personal use only Hyde Park Hotel, West Perth, WA
Slide 13: FY17 results snapshot
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 FY17 results snapshot For personal use only Key metrics FY171 Statutory profit $35.2m Operating earnings $33.6m Operating earnings per unit 16.2 cents Distributions per unit 16.2 cents Payout ratio 100% 30 Jun 2017 31 Dec 2016
Slide 14: Financial performance
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Financial performance For personal use only A$m FY171 PDS % change Net property income 52.5 50.3 4.4% Increased revenue driven by NPI from property acquisitions Interest income 0.2 0.1 19.2% Total income 52.7 50.4 4.5% Operatin
Slide 15: Balance sheet
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Balance sheet For personal use only A$m Jun 2017 Dec 2016 % change Cash 2.9 14.1 (79.5%) 5.5% asset growth over half year Investment properties 760.4 744.9 2.1% period • $28.8m gross property valuation Equity accounted investme
Slide 16: Debt & hedging summary
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Debt & hedging summary For personal use only A$m Look through debt maturity profile (A$m) Debt summary Limit Drawn Maturity 500 Balance sheet debt 400 91.0 Syndicated debt facility 450.0 359.0 Nov 2021 Joint venture debt (CLW i
Slide 17: Property acquisitions
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Property acquisitions For personal use only Coles Distribution Centre, Perth, WA
Slide 18: LWIP hotel acquisition & disposal
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 LWIP hotel acquisition & disposal Acquisition of Bridge Inn Hotel and divestment of Prestons Hotel by LWIP For personal use only • Post 30 June 2017, LWIP (in which CLW owns a 45% interest) has contracted to: – acquire the Brid
Slide 19: Bunnings South Mackay
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Bunnings South Mackay Acquisition of a stabilised Bunnings Warehouse property For personal use only • Exchanged during FY17 and settled 3 July 2017 • $28.5 million purchase price, reflecting a capitalisation rate of 6.0% Acquis
Slide 20: LWIP hotel portfolio
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 LWIP hotel portfolio Acquisition of a three hotel portfolio from ALH Group on a sale and leaseback For personal use only • Acquired by LWIP on 22 June 2017 • $23.2 million (100% interest) reflecting a portfolio yield of 6.26% A
Slide 21: SUEZ portfolio
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 SUEZ portfolio Acquisition of a stabilised industrial portfolio delivering long term, growing and secure income For personal use only • Acquired 23 December 2016 • $65.9 million purchase price, reflecting a portfolio capitalisa
Slide 22: FY18 earnings guidance & REIT simplification update
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 FY18 earnings guidance & REIT simplification update For personal use only Australian Taxation Office, Adelaide, SA
Slide 23: REIT simplification update
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 REIT simplification update For personal use only • The proposal to simplify the REIT’s existing seven trust stapled structure to a three trust stapled structure was announced today • The simplification proposal, if approved, wi
Slide 24: FY18 earnings guidance
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 FY18 earnings guidance For personal use only • Barring any unforeseen events and no material change in current market conditions, CLW’s guidance for FY18 Operating EPU is 26.4 cents, which is: - 3.9% growth over FY17 annualised
Slide 25: Additional information
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Additional information For personal use only 1. FY17 NTA reconciliation 26 2. Portfolio revaluations 27 3. Property investment portfolio 28 4. Glossary 31 5. Contact information 32 Allenstown Hotel, Rockhampton, QLD
Slide 26: FY17 NTA reconciliation
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 FY17 NTA reconciliation For personal use only NTA per unit reconciliation ($A) $0.14 ($0.07 ) ($0.02 ) $3.93 $3.88 $3.84 NTA as at IPO NTA as at 31 Dec 2016 Property revaluations IPO & acquisition cost write off Derivative MTM
Slide 27: Portfolio revaluations
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Portfolio revaluations For personal use only • Property revaluations during FY17 resulted in a total gross uplift of $37.8 million, reflecting a 2.8% increase on prior book values for the original portfolio at IPO (excludes pro
Slide 28: Property investment portfolio: Office
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Property investment portfolio Office portfolio For personal use only Asset State REIT interest Valuation1 (A$m) Cap rate2 (%) WALE3 (years) Occupancy3 (%) NLA4 (sqm) WARR5 (%) Westpac Building, Kogarah NSW 50.1% 101.9 5.5% 17.0
Slide 29: Property investment portfolio: Industrial
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Property investment portfolio Industrial portfolio For personal use only REIT Valuation1 WALE3 Occupancy3 WARR5 Asset State Cap rate2 (%) GLA4 (sqm) interest (A$m) (years) (%) (%) Australia Post, Kingsgrove NSW 100% 22.0 5.8% 9
Slide 30: Property investment portfolio: Retail
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Property investment portfolio Retail portfolio For personal use only LWIP portfolio1 Other retail2 Total Number of assets 57 1 58 Property valuation3 (A$m) 327.2 28.5 355.7 WACR4 (%) 6.02 6.00 6.02 WALE5 17.2 years 9.4 years 16
Slide 31: Glossary
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Glossary For personal use only ASX Australian Stock Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash Cap rate Capitali
Slide 32: Contact information
Charter Hall | Charter Hall Long WALE REIT FY17 Results I 18 August 2017 Contact information For personal use only Avi Anger Kerri Leech Fund Manager Head of Long WALE REIT and Industrial Finance Charter Hall Long WALE REIT Charter Hall Long WALE REIT T: +61 2 8651 9111 T: +61 2 8651 9347 E: avi.ang
Slide 33: Charter Hall office locations
Sydney Charter Head Hall | Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 12, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 4000 T: +61 7 3228 2000 Perth Level 5, St
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