Charter Hall Group · ASX:CHC
Charter Hall — Macquarie Australia Conference 2019
27 slides from Charter Hall's conference presentation, Apr 30, 2019
Slide 1: Presentation to Macquarie Australia Conference
For personal use only 30 April 2019 Charter Hall Group Presentation to Macquarie Australia Conference 1, 10 & 12 Shelley Street, Sydney NSW
Slide 2: Our Strategy: 1. Group Highlights
Charter Hall Group I 2019 Macquarie Australia Conference Our Strategy For personal use only 1. Group Highlights 2 Richlands Distribution Facility (Coca Cola Amatil), 220-260 Orchard Road, Richlands QLD
Slide 3: Group Highlights
Charter Hall Group I 2019 Macquarie Australia Conference Group Highlights Group highlights1 For personal use only Group investment capacity of $2.6bn Group returns Property Investments Funds Management Balance sheet 12.0% 22.4% FUM growth to $108m operating earnings 5.5% balance sheet Total Property
Slide 4: Group Highlights: Our strategy
Charter Hall Group I 2019 Macquarie Australia Conference Group Highlights Our strategy We use our property expertise to access, deploy, manage and invest equity in our core real estate sectors to create value and generate superior returns for our customers. For personal use only Access Deploy Manage
Slide 5: Sustained growth
Charter Hall Group I 2019 Macquarie Australia Conference Group Highlights Sustained growth For personal use only Strong growth in earnings underpinning distribution growth Operating earnings per security growth Distributions per security growth 2 DPS (grossed up) DPS Pre-tax OEPS Post-tax OEPS 27.7c
Slide 6: 2. Property Funds Management
Charter Hall Group I 2019 Macquarie Australia Conference For personal use only 2. Property Funds Management 6 ATO Building, 12-26 Franklin Street, Adelaide SA
Slide 7: Group funds management portfolio
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Group funds management portfolio For personal use only 83% east coast weighting Portfolio Value Lettable Area No. of No. of Gross Income WALE1 Occupancy WACR2 ($bn) (m sqm) Properties Tenancies ($m) (years) (%) (%) 31
Slide 8: Market Penetration – Sydney / NSW
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Market Penetration – Sydney / NSW For personal use only NSW FUM ($bn) No. Assets Property Investments Office 6.3 19 Retail 3.0 50 Industrial 1.9 49 Social Infrastructure 0.2 91 Other 0.1 2 Total 11.6 211 8
Slide 9: Market Penetration – Melbourne / VIC
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Market Penetration – Melbourne / VIC For personal use only VIC FUM ($bn) No. Assets Property Investments Balance sheet Office 2.4 14 Retail 1.0 30 Industrial 2.5 44 Social Infrastructure 0.4 102 Other 0.1 1 Total 6.3
Slide 10: Market Penetration – Brisbane / QLD
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Market Penetration – Brisbane / QLD For personal use only QLD FUM ($bn) No. Assets Property Investments Balance sheet Office 2.9 17 Retail 1.3 51 Industrial 1.0 29 Social Infrastructure 0.3 131 Total 5.6 228 10
Slide 11: Market Penetration – Perth / WA
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Market Penetration – Perth / WA For personal use only WA FUM ($bn) No. Assets Property Investments Balance sheet Office 1.0 6 Retail 0.8 25 Industrial 1.1 22 Social Infrastructure 0.04 18 Total 3.0 71 11
Slide 12: Market Penetration – Adelaide / SA
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Market Penetration – Adelaide / SA For personal use only SA FUM ($bn) No. Assets Property Investments Balance sheet Office 0.3 3 Retail 0.2 8 Industrial 0.4 8 Social Infrastructure 0.04 28 Total 1.0 47 12
Slide 13: Funds under management growth
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Funds under management growth For personal use only 5 year FUM growth of 22.3% per annum • Post 31 December 2018, the DVP wholesale partnership was formed with seed assets totaling $113m including the 50.5% interest i
Slide 14: 1H FY19 transactional activity
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management 1H FY19 transactional activity For personal use only • Acquisition activity led by the Office and Industrial sectors Long WALE Shopping Centre Social ($m) Office Industrial Total Retail Retail Infrastructure Acquisiti
Slide 15: Development activity
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Development activity For personal use only Continues to drive asset creation and attract capital • Development completions have added $2.6bn of FUM • Majority of committed projects are de-risked through over the last
Slide 16: Leasing activity
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Leasing activity For personal use only Deals completed over the last 12 months Social Office Industrial Retail Infrastructure Existing assets leased 131,403 284,947 89,403 12,197 (lettable area) Major leases Developme
Slide 17: Equity flows
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Equity flows For personal use only Diversified equity sources with $1,220m gross equity raised in the 6 months to 31 December 2018: • Across the Group, thirteen funds have raised equity in the half • $172m raised in L
Slide 18: Capital Markets Overview
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Capital Markets Overview For personal use only Wholesale / Unlisted Direct / HNW unlisted Listed REITs • Equity flows continue • Equity flows continue from • All 3 REITs have raised $460m • Prime markets well-bid by S
Slide 19: Australian Property Markets
Charter Hall Group I 2019 Macquarie Australia Conference Property Funds Management Australian Property Markets For personal use only • Record Property Investments low vacancies in Sydney and Melbourne Balance sheet Office • Strong market rental growth complementing CHC Office 3.7% WARR • Yield curve
Slide 20: 3. Property Investment
Charter Hall Group I 2019 Macquarie Australia Conference For personal use only 3. Property Investment 20 Dandenong South Industrial Centre (Bombardier), 34-35 Frankston Road, Dandenong VIC
Slide 21: Property Investment portfolio
Charter Hall Group I 2019 Macquarie Australia Conference Property Investment Property Investment portfolio For personal use only 81% east coast weighting Portfolio Value No of WALE Occupancy WARR1 WACR WADR2 ($m) Properties (years) (%) (%) (%) (%) 31 Dec 18 1,821 762 7.5 97.8 3.5 5.73 7.0 30 Jun 18
Slide 22: Diversified earnings resilience
Charter Hall Group I 2019 Macquarie Australia Conference Property Investment Diversified earnings resilience For personal use only Top 10 asset exposures represent only 10.8% of earnings • 71% repeat customers across 1,824 leases • Tenant retention rate of 78% for the six months to 31 Dec 2018 Top 1
Slide 23: 4. Outlook & Guidance
Charter Hall Group I 2019 Macquarie Australia Conference For personal use only 4. Outlook & Guidance 23 Only About Children, 160-162 Victoria Road, Northcote VIC
Slide 24: FY19 earnings guidance
Charter Hall Group I 2019 Macquarie Australia Conference Outlook & Guidance FY19 earnings guidance For personal use only We believe the property market landscape will continue to accommodate growth • Asset growth is expected in submarkets that are underpinned by favourable property fundamentals wher
Slide 25: Contact information
Charter Hall Group I 2019 Macquarie Australia Conference Additional information Contact information For personal use only David Harrison Russell Proutt Philip Cheetham Managing Director & Group CEO Chief Financial Officer Head of Listed Investor Relations Charter Hall Group Charter Hall Group Charte
Slide 26: Disclaimer
Charter Hall Group I 2019 Macquarie Australia Conference Additional information Disclaimer For personal use only IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by Charter Hall Funds Management Limited ACN 082 991 786)) (together, with its related bodies corporate, the Charter Hall
Slide 27: For personal use only
Charter Hall Group I 2019 Macquarie Australia Conference Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 14, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD
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