Charter Hall Social Infrastructure Reit · ASX:CQE
Charter Hall Social Infrastructure Reit — Investor Presentation (March 2019)
36 slides from Charter Hall Social Infrastructure Reit's investor presentation, Mar 26, 2019
Slide 1: Charter Hall Education Trust Acquisitions and Equity Raising Presentation
Education Trust 26 March 2019 Charter Hall Education Trust Acquisitions and Equity Raising Presentation Not for release to US wire services or distribution in the United States except to Approved US Investors Elwood, VIC
Slide 2: Disclaimer
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Disclaimer Important Notice This presentation ("Presentation") has been prepared by and is the sole responsibility of Charter Hall Social Infrastructure Limited (ABN 46 111 338 937, Australian Financial Services Licence Numb
Slide 3: Disclaimer
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Disclaimer Distribution This Presentation is for information purposes only and is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or any other law (and will
Slide 4: Table of contents
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Table of contents Appendix 1. Transaction overview A. Additional information 2. Strategic rationale B. Current trends in early learning sector 3. Acquisition Portfolio overview C. Summary of key risks 4. CQE portfolio impact
Slide 5: Transaction overview
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Transaction overview Equity raising to acquire a portfolio of high quality, purpose built and long WALE early learning centres • Charter Hall Education Trust (“CQE” or “Trust”), is today announcing the acquisition of 13 earl
Slide 6: Strategic rationale
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Strategic rationale High quality assets leased to established early learning operators with an average lease term of 17.9 years 1 Quality assets in strong metro locations 2 Long-term leases to quality tenants 13 high quali
Slide 7: Acquisition Portfolio overview
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Acquisition Portfolio overview Centres consistent with CQE strategy, located in prime, mostly inner-ring locations MELBOURNE SYDNEY BRISBANE E Brisbane Sydney A A Melbourne C B F D C G H A I B VIC Centres NSW Centres QLD Cen
Slide 8: Acquisition Portfolio overview (continued)
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Acquisition Portfolio overview (continued) Majority of Acquisition Portfolio forecast to be completed by September 2019 OVERVIEW ASSET TYPE BY VALUE • 88% of Acquisition Portfolio consideration expected to be spent by Q1 FY2
Slide 9: CQE portfolio impact
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation CQE portfolio impact 13 centres secured via off-market transactions that further enhances CQE’s stable and defensive characteristics Acquisition Dec-18 pro forma Dec-18 Portfolio2 for Acquisitions Number of properties 413 13
Slide 10: Early learning market overview
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Early learning market overview Major economic sector, growing from a fragmented base, providing opportunity for consolidation ESTIMATED AUSTRALIAN EARLY LEARNING CENTRE GROWING SOCIAL INFRASTRUCTURE INDUSTRY PROPERTY VALUATI
Slide 11: Drivers of the early learning sector
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Drivers of the early learning sector Fundamentals are strong on the back of continued demand growth DEMAND STEADILY INCREASING ACTUAL AND FORECAST POPULATION 0 - 4 YEAR OLDS1 2.0 • +180,000 children (0-4 year olds) by 20291
Slide 12: Affordability of early learning since CCS Introduction
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Affordability of early learning since CCS Introduction Affordability of early learning is reported to have improved by an average of 11% since the introduction of the CCS (July 18 – Dec 18) Childcare Consumer Price Index is
Slide 13: Equity raising
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Equity raising $100 million fully underwritten Placement and UPP • The Trust is undertaking a $100 million fully underwritten institutional placement and also intends to offer a non-underwritten UPP of up to $5 million1 to f
Slide 14: Equity raising (continued)
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Equity raising (continued) Key terms of Placement and UPP • Fully underwritten institutional Placement to raise approximately $100 million Structure • $5m non-underwritten UPP to eligible investors in Australia and New Zeala
Slide 15: Equity raising (continued)
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Equity raising (continued) Timetable Event Date 2019 Record date for UPP 7pm, Monday, 25 March Trading halt and announcement of the Acquisitions and Placement Tuesday, 26 March Placement executed Tuesday, 26 March Announceme
Slide 16: Conclusion
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Conclusion Acquisitions are consistent with CQE’s locational strategy and adds high quality early learning centres to CQE’s portfolio Assets acquired have an attractive initial yield of 6.5%, 17.9 year WALE1 and WARR of
Slide 17: Appendix A
Charter Charter HallHall Education Education Trust Trust I Portfolio I Acquisitions Acquisition and and Equity Equity Raising Raising Presentation Presentation Our Strategy Appendix A 17 17 17 17 17 Camberwell, Brighton, Keysborough, VICVIC
Slide 18: Pro-forma balance sheet
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Pro-forma balance sheet Independent Capital valuations and mark- management Acquisitions and $m Dec-18 to-market movements initiatives1 Placement3 Dec-18 pro-forma3,4 Cash 0.1 0.1 Investment properties 1,036.3 4.5 79.72 1,12
Slide 19: Prudent capital management
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Prudent capital management COMMENTARY Dec-18 Dec-18 pro-forma2 Change • Alongside the Acquisitions and Placement, CQE has undertaken a Debt facilities limit ($m) 347.0 397.0 +50.0 number of capital management initiatives to
Slide 20: Delivering on Strategy
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Delivering on Strategy Acquisitions on strategy, extending CQE’s position as Australia’s largest early learning REIT CQE strategy CQE at Dec-18 Acquisition Portfolio Enhances WALE and occupancy metrics 100.0%1 occupancy
Slide 21: Appendix B
Charter Charter HallHall Education Education Trust Trust I Portfolio I Acquisitions Acquisition and and Equity Equity Raising Raising Presentation Presentation Our Strategy Appendix B 21 21 21 21 Yeronga, QLD
Slide 22: Early learning demand update
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Early learning demand update ACTUAL AND FORECAST POPULATION 0-4 YEAR OLDS: 2001 - 2038 2.0 0-4 Child Population (Millions) 1.9 • By 2029 it is forecast there will be 180,000 more pre- 1.8 school children (0-4 year olds) grow
Slide 23: Early learning supply update
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Early learning supply update • As at December 2018 there were 7,574 Long Day Care (LDC) • Supply is expected to moderate in 2019 and beyond with higher centres in Australia, growing by 4.7% for CY18 barriers to entry such as
Slide 24: Appendix C
Charter Charter HallHall Education Education Trust Trust I Portfolio I Acquisitions Acquisition and and Equity Equity Raising Raising Presentation Presentation Our Strategy Appendix C 24 24 24 Holland Park, QLD 24
Slide 25: Summary of key risks
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Summary of key risks Transaction specific risks Other risks Acquisition risk Rental Income Whilst the Trust expects the Acquisitions to proceed as advised in this Presentation, if an acquisition Distributions made by the Tru
Slide 26: Summary of key risks
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Summary of key risks Property valuation risk (cont.) Tenant concentration Property values may fall if the underlying assumptions on which the property valuations outlined in The Trust's properties are predominately early lea
Slide 27: Summary of key risks
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Summary of key risks Reliance on third parties Extension and refinancing The Responsible Entity may engage third party service providers in respect of a part or the whole of The Trust's ability to refinance or repay its debt
Slide 28: Summary of key risks
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Summary of key risks Insurance Environmental Insurance coverage is maintained in respect of each property (including insurance for destruction or As with any property, there is a risk that one or more of the properties in th
Slide 29: Summary of key risks
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Summary of key risks There are risks associated with any stock market investment. These include, but are not Macro-economic (cont.) limited to: Consequently the trading price of Units may be influenced by factors non-specifi
Slide 30: Appendix D
Charter Charter HallHall Education Education Trust Trust I Portfolio I Acquisitions Acquisition and and Equity Equity Raising Raising Presentation Presentation Our Strategy Appendix D 30 30 30 30 Tarragindi, QLD
Slide 31: Foreign selling restrictions
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Foreign selling restrictions This document does not constitute an offer of Units (“New Units”) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New
Slide 32: Foreign selling restrictions
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Foreign selling restrictions These rights are in addition to and not in derogation from any other right the purchaser may have. Certain Canadian income tax considerations. Prospective purchasers of the New Units should consu
Slide 33: Foreign selling restrictions
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Foreign selling restrictions Switzerland The New Units may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerlan
Slide 34: Appendix E
Charter Charter HallHall Education Education Trust Trust I Portfolio I Acquisitions Acquisition and and Equity Equity Raising Raising Presentation Presentation Our Strategy Appendix E 34 34 34 Bardon, QLD 34
Slide 35: Glossary
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Glossary Defined term Meaning CAGR Compound Annual Growth Rate CBD Central Business District CCLP Consulting CCLP Consulting Pty Limited (ABN 55 610 308 202) CCS Australian Government Child Care Subsidy which came into effec
Slide 36: www.charterhall.com.au
Charter Hall Education Trust I Acquisitions and Equity Raising Presentation Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 Melbourne Level 14, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 40
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