Charter Hall Social Infrastructure Reit · ASX:CQE
Charter Hall Social Infrastructure Reit — H1 FY2022 Earnings Presentation
33 slides from Charter Hall Social Infrastructure Reit's earnings presentation, Feb 17, 2022
Slide 1: FY22 Half Year Results
FY22 Half Year Results Half Year Charter Hall Social FY21 Results Infrastructure REIT Charter Hall Social Infrastructure REIT 17 February 2022 FY22 Half Year Results
Slide 2: Acknowledgement of Country
Acknowledgement of Country Charter Hall is proud to work with our customers and communities to invest in and create places on lands across Australia. We pay our respects to the traditional owners, their elders past and present, and value their care and custodianship of these lands. Coming Together,
Slide 3: Agenda
Travis Butcher Fund Manager Agenda 1. Key Highlights and Strategy 2. Financial Performance Scott Martin Head of Finance 3. Operational Performance - Diversified 4. Industry Overview 5. Outlook & Guidance 6. Additional Information Nathan Chew Deputy Fund Manager Cover: Emergency Command Centre, 33 Ri
Slide 4: Key Highlights and Strategy
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 1 CQE Centre, Key Highlights and Strategy Brighton East, VIC FY22 2022Half HalfYear Year Results Results
Slide 5: Key Highlights and Strategy
Key Highlights and Strategy Australia largest diversified ASX-listed social infrastructure REIT FY22 distribution guidance of 17.2 cpu, a 9.6% increase on FY21 Financial Balance Sheet Property Portfolio EPU / DPU Gross Assets WALE 8.5c / 8.4c $1.9b 14.6yrs Increase of 6.3% / 12.0% on 1H FY21 Increas
Slide 6: Our Strategy
Key Highlights and Strategy Our Strategy To provide investors with secure income and capital growth through exposure to social infrastructure property Enhancing income sustainability and Targeting ongoing Portfolio resilience capital growth curation ‒ Improving the quality of ‒ Focus on assets with
Slide 7: Delivering on Strategy
Key Highlights and Strategy Delivering on Strategy Long WALE social infrastructure assets now contributing 15% of CQE’s annual rental income Emergency Command Centre Mater Headquarters and Training Facilities Healthcare Asset – Healius 33 Richmond Road, Keswick, Adelaide SA 14 Stratton Street, Newst
Slide 8: Delivering on Strategy
Key Highlights and Strategy Delivering on Strategy Continued investment in high quality childcare portfolios 23 centres acquired / 4 completed during 1H FY22, valued at $189.1 million – 18 centres acquired and settled in 1H FY22 with a further 5 centres under contract – 4 development assets complete
Slide 9: ESG Highlights
Key Highlights and Strategy ESG Highlights Delivering on our ESG Framework $8.6 million approved Launched two year partnership with 100% net 100% to provide solar tenant customer Goodstart to provide zero carbon renewable solutions across CQE funding for children from vulnerable emissions electricit
Slide 10: Financial Performance
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 2 Financial Performance Mater Headquarters and Training Facilities, 14 Stratton Street, Newstead, Brisbane QLD FY22 2022Half HalfYear Year Results Results
Slide 11: Earnings Summary
Financial Performance Earnings Summary $m 1H FY21 1H FY22 % change Net Property Income1 35.6 40.1 12.6 - Net property income increased by $4.5 million Distribution Income 1.3 1.0 (23.1) or 12.6% on the previous corresponding period (pcp) driven by: Finance Costs2 (3.7) (4.7) (27.0) - Like-for-like r
Slide 12: Balance Sheet
Financial Performance Balance Sheet $m 30 June 2021 31 December 2021 Cash 5.3 55.1 - $362 million growth in investment properties1, Investment Properties 1,448.0 1,804.5 up 24.0% driven by: - Net property revaluation uplift of $175.4 Investment in JV (Brisbane Bus Terminal) 35.3 40.8 million1; Secur
Slide 13: Capital Management
Financial Performance Capital Management Debt & Hedging Summary as at 30 June 2021 31 December 2021 Facility Limit ($m) 600.0 800.01 - Facilities extended and increased to $800 Debt Drawn Amount ($m) 300.0 565.0 million in February 2022 to provide $200 million Weighted Average Debt Maturity (years)
Slide 14: Operational Performance
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 3 Operational Performance Emergency Command Centre, 33 Richmond Road, Keswick, Adelaide, SA FY22 2022Half HalfYear Year Results Results
Slide 15: Portfolio Summary
Operational Performance Portfolio Summary June 2021 Dec 2021 – 18 childcare acquisitions settled and 4 completed childcare developments with Number of operating properties 341 364 average lease terms of 13 years Number of tenants 38 43 – Completion of SA Emergency Command Centre development and acqu
Slide 16: Portfolio Summary
Operational Performance Portfolio Summary Average fixed rent reviews of 3.0% Tenant profile by % of annual rent as at Dec 2021 Geographical profile by % of annual rent as at Dec 2021 now apply to 75% of portfolio G8 Education 10% – Key portfolio income metrics: Only About QLD1 – Top 5 tenants: 71% G
Slide 17: Portfolio Valuations
Operational Performance Portfolio Valuations 1H FY22 Valuations No. Value Yield Valuation Valuation Valued ($m) (%) Uplift ($m) Uplift (%) Valuation uplift of $175.4 million Childcare Portfolio1 337 1,370.5 5.0 159.8 13.2 highlights portfolio resilience and Non-Childcare Portfolio2 4 315.2 4.4 15.6
Slide 18: Childcare Development Pipeline
Operational Performance Childcare Development Pipeline 4 developments completed in 1H FY22 with a further 7 due for completion in CY22 Kilsyth VIC Completed Developments 1H FY22 Number 4 Doncaster East VIC Valuation upon completion ($m) 28.3 Mount Waverley VIC Valuation Uplift ($m) 5.0 Average yield
Slide 19: Industry Overview
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 4 Industry Overview FY22 2022Half HalfYear Year Results Results
Slide 20: Social Infrastructure Overview
Industry Overview Social Infrastructure Overview Spending on social infrastructure forecast to increase, providing further opportunities for CQE Forecast Government Spending on Essential Services2 Health 200 - The proportion of Australia’s population aged over 65 is projected to grow 21% by 20661 18
Slide 21: Childcare Industry
Industry Overview Childcare Industry Essential nature of childcare continues to be demonstrated − Essential nature of childcare demonstrated during the COVID-19 pandemic and associated restrictions to both provide a safe learning environment for children Forecast Government Spending on Childcare Sec
Slide 22: Outlook & Guidance
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 5 Brisbane Bus Terminal, Eagle Farm, QLD Outlook & Guidance FY22 2022Half HalfYear Year Results Results
Slide 23: Outlook & Guidance
Outlook & Guidance Outlook & Guidance − Continue to execute on strategy and pursue opportunities with strong tenant and property fundamentals in the social infrastructure sector − CQE reconfirms that based on information currently available and barring any unforeseen events, or a further deteriorati
Slide 24: Additional Information
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 6 Additional Information FY22 2022Half HalfYear Year Results Results
Slide 25: Portfolio Overview
Additional Information Portfolio Overview As at 31 December 2021 No. Value ($m) % Portfolio Passing Yield (%) − Majority of leases in the portfolio are triple net with fixed rental increases NSW/ACT 87 313.8 16.3 5.3 QLD 119 469.6 24.4 5.1 − Total land holdings of 92.5 hectares: VIC 81 422.7 22.0 4.
Slide 26: Driving ESG into asset acquisition, new developments and stabilised portfolio
Additional Information Driving ESG into asset acquisition, new developments and stabilised portfolio Emergency Command Centre Mater Headquarters and Training Facilities Brisbane Bus Depot 33 Richmond Road, Keswick, Adelaide SA 14 Stratton Street, Newstead, Brisbane QLD 40 Schneider Road, Eagle Farm,
Slide 27: Capital Transactions
Additional Information Capital Transactions Acquisitions Total - Acquisition of 18 childcare centres ($100 million) settled during 1H FY22 Number of assets 24 Purchase Price ($m) 1 192.7 - A further 5 childcare centres ($57.3 million) under contract and due to settle January – WALE (years) 13.4 Apri
Slide 28: Statutory Profit Reconciliation
Additional Information Statutory Profit Reconciliation 1H FY21 1H FY22 Statutory Profit Reconciliation ($m) ($m) Operating Earnings 29.1 30.8 Net fair value gain on investment properties 24.3 165.4 Net movements on derivative financial instruments (0.2) 4.1 Share of equity accounted non-operating pr
Slide 29: NTA Reconciliation
Additional Information NTA Reconciliation NTA per Unit: June 2021 to December 2021 - As at 31 December 2021, CQE had a NTA per 3.80 unit of $3.78 reflecting an increase of 16.3% from $3.25 as at 30 June 2021 3.70 - Increase in NTA per unit primarily driven by: - property revaluation uplift of $170.7
Slide 30: Key Statistics
Additional Information Key Statistics Financial & Capital Management Metrics FY15 FY16 FY17 FY18 FY19 FY20 FY21 1H FY22 NTA ($) 1.82 2.14 2.51 2.78 2.96 2.92 3.25 3.78 NTA Growth (%) 21.3 17.6 17.3 10.8 6.5 (1.4) 11.3 16.3 DPU (c) – Ordinary 12.8 13.4 14.2 15.1 16.0 16.0 15.7 8.4 DPU (c) – Special -
Slide 31: Glossary
Additional Information Glossary ACECQA Australian Children’s Education and Care Quality Authority ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt less cash to total tangible assets, less cash CCS Childcare subsidy CPI Consumer Price Index CPU Cents
Slide 32: Further information
Additional Information Further information Travis Butcher Scott Martin Nathan Chew Lula Liossi Philip Cheetham Fund Manager – CQE Head of Finance – Deputy Fund Manager – Investor Relations Manager Head of Listed Diversified CQE Investor Relations Charter Hall Group Charter Hall Group Charter Hall Gr
Slide 33: Important Notice & Disclaimer
charterhall.com.au/cqe IMPORTANT NOTICE & DISCLAIMER Charter Hall Social Infrastructure Limited ACN 111 338 937; AFSL 281544 (“CHSIL”) has issued this presentation in its capacity as the responsible entity of Charter Hall Social Infrastructure REIT ARSN 102 955 939 (“CQE"). This presentation has bee
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