Charter Hall Group · ASX:CHC
Charter Hall — Shareholder Meeting (November 2016)
49 slides from Charter Hall's shareholder meeting presentation, Nov 9, 2016
Slide 1: Chair's Address
Charter Hall Group Annual General Meeting 2016 Chair’s Address Charter Hall Group 2016 Annual General Meeting Good afternoon. On behalf of the Board of Directors it is my pleasure to welcome you all to the 2016 Annual General Meeting of your company, Charter Hall Group. My name is David Clarke and I
Slide 2: Board of Directors introductions
Security holders holding a yellow or red attendance card will have the opportunity to ask questions as we address each item of business listed in the Notice of Meeting. Unfortunately, visitors with blue attendance cards are not permitted to ask questions during this meeting. At the conclusion of the
Slide 3: Chair's Address: vision, purpose and goal
member of the RHRC. Colin is not seeking re-election to the board and is retiring at the conclusion of this meeting. Colin has been a director of the Charter Hall Group since 2005. Finally, I introduce our Managing Director and Group CEO, David Harrison. Also present today and I welcome: Tracey Jo
Slide 4: Solid total securityholder returns
Solid total securityholder returns I am pleased to report the Group delivered solid growth across our platform during the 2016 financial year. As a result, we were able to deliver a total securityholder return over the 12 months to 30 September 2016 of 24.1% and the past 5 years of 32.7%. Over the p
Slide 5: A new structure to support future growth
A new structure to support future growth In February, after more than 10 years of successful joint leadership, the Board appointed David Harrison as Managing Director and Group CEO (MD/CEO) of Charter Hall Group and David Southon elected to step down as Joint Managing Director (JMD). The decision to
Slide 6: A strong Board of Directors with a diverse skill set
A strong Board of Directors with a diverse skill set The Charter Hall Board is also focused on succession and renewal. This year, after nearly four years on the Board and on the Audit, Risk and Compliance Committee as Chair, David Deverall an independent Non-Executive Director announced his acceptan
Slide 7: Committed to creating a diverse and inclusive culture
stock exchange, and retires today from a successful manager and investor of $18 billion of Australian real estate. We thank him for all the time and wisdom he has bought to his role with us. We believe we are close to appointing a new director to your board to fill the place vacated by Colin’s retir
Slide 8: Committed to Corporate Governance
our goal to be Australia’s best and most highly regarded property investment and funds management business. We strive to do better in all aspects of your business. The measures I have just talked about help us bring the expertise of our platform, our tenant relationships, and our ability to bring op
Slide 9: Close of Meeting
Each provides the necessary focus on governance and discipline in the allocation of capital and when making key acquisition and disposal decisions. I would like to acknowledge those directors and committee members for the very important work they do. We hold a position of significant trust among tho
Slide 10: FY17 outlook
We believe financial year 2017 will be another very interesting year for the Group. We see like you, the uncertainty in markets and we are determined to focus on “through the cycle performance”. We will continue to harness our peoples’ collective skills and experience, to focus on our core property
Slide 11: Charter Hall Group 2016 AGM
Charter Hall @ Charter Hall Group _~ = 2016 AGM
Slide 12: Contents
Charter Hall | 9 November 2016 Contents 1 Chair’s Address: David Clarke 2 Managing Director’s Address: David Harrison 3 Sector Highlights 4 Formal Business
Slide 13: Board of Directors
Charter Hall | 9 November 2016 Board of Directors David Clarke Chair Anne Brennan Karen Moses Philip Garling Non-Executive Director Non-Executive Director Non-Executive Director Peter Kahan Colin McGowan David Harrison Non-Executive Director Non-Executive Director Managing Director & Group CEO 3
Slide 14: Chair's Address
Charter Hall | 9 November 2016 Chair’s Address
Slide 15: Group Highlights
Charter Hall | 9 November 2016 Group Highlights OUR VISION 30 June 2016 “Our goal is to be Australia’s best and most highly regarded property investment and funds management business.” 24.1% 1 $17.5b $1.5b TOTAL SECURITYHOLDER FUM GROSS EQUITY RAISED RETURN $215.2m $3.04 $1.1b $97.3m 10.1% PROPERT
Slide 16: Sustained Growth
Charter Hall | 9 November 2016 Sustained Growth OPERATING EARNINGS PER SECURITY GROWTH 30.4 27.5 25.3 TOTAL PERFORMANCE OVER 1, 3, 5 YEARS (%P.A) 32.7% 22.9 20.7 19.2 15.8 24.1% 20.8% 75 19.6% 17.7% 17.7% FY10 FY11 FY12 FY13 FY14 FY15 FY16 11.5% DISTRIBUTABLE EARNINGS 10.6% 9.8% PER SECURITY GROWTH
Slide 17: Managing Director's Address
Charter Hall | 9 November 2016 Managing Director’s Address
Slide 18: Our Strategy
Charter Hall | 9 November 2016 Our Strategy We use our property expertise to access, deploy, manage and invest equity in our core real estate sectors – office, retail and industrial – to create value and generate superior returns for our customers. ACCESS DEPLOY MANAGE INVEST Access to equity from w
Slide 19: FY17 YTD Activity
Charter Hall | 9 November 2016 FY17 YTD Activity ACCESS DEPLOY MANAGE INVEST Access to equity from wholesale, Creating value through attractive Property funds management, asset Investing alongside our capital retail and listed investors. investment opportunities. management, leasing partners. and de
Slide 20: High Quality Diversified Property Portfolio
Charter Hall | 9 November 2016 High Quality Diversified Property Portfolio Portfolio WALE of 7.9 years well diversified across funds and property sectors Weighted Average Lease Expire (WALE) Property Investment by Fund LWIP2 19.2 LWR CLW 12.5 CLW 12% CQR CLP 9.6 22% LWHP 8.8 CPIF 8.3 CPIF PFA 7.1 8%
Slide 21: Group Funds Management Portfolio
Charter Hall | 9 November 2016 Group Funds Management Portfolio Portfolio Portfolio No. of No. of Gross WALE Occupancy WACR1 Value ($b) Size (m2) Properties Tenants Income ($m) (years) (%) (%) 30 Sep 16 18.0 4.9 304 2,642 1,360 7.9 98.3 6.49 FY16 17.5 4.8 296 2,550 1,306 7.9 98.6 6.54 FY15 13.6 4.0
Slide 22: Property Transactions
Charter Hall | 9 November 2016 Property Transactions FY16 Transactions $m Office Industrial Retail TOTAL Acquisitions $946 $1,337 $719 $3,002 Divestments $367 $190 $183 $740 Net transactions $579 $1,147 $536 $2,262 Gross transactions $1,313 $1,527 $902 $3,742 FY17 YTD Transactions $m Office Industri
Slide 23: Development Activity
Charter Hall | 9 November 2016 Development Activity • Development opportunities undertaken to enhance both income yield and total returns for managed funds • In-house development skills are a core competency Completion value Committed Committed Change $m projects projects FY16 FY17 YTD Office 681 83
Slide 24: Equity Inflows Across the Funds Platform
Charter Hall | 9 November 2016 Equity Inflows Across the Funds Platform Diversified equity sources with $938 gross equity raised YTD including: - $701m in listed Funds including $692m from the successful IPO of Charter Hall Long WALE REIT - $176m in Wholesale Funds and Partnerships with equity raisi
Slide 25: Sector Highlights
Charter Hall | 9 November 2016 Sector Highlights
Slide 26: Sector Highlights
Charter Hall | 9 November 2016 Sector Highlights OFFICE INDUSTRIAL RETAIL FUM FUM FUM $8.2b $4.7b $5.1b 75 PORTFOLIO PORTFOLIO PORTFOLIO 49 90 165 OCCUPANCY OCCUPANCY OCCUPANCY 97.7% 99.2% 98.5% 8 WALE WALE WALE 6.6yrs 9.4yrs 9.0yrs 1. Data as at 30 September 2016 except for FUM which is updated as
Slide 27: Upgrade to FY17 Earnings Guidance
Charter Hall | 9 November 2016 Upgrade to FY17 Earnings Guidance Absent unexpected events, Charter Hall’s guidance has been upgraded for FY17 operating earnings per security growth over FY16 to: • On a pre-tax basis 17-18% growth • On a post-tax basis approximately 7% growth The upgraded operating e
Slide 28: Formal Business
Charter Hall | 9 November 2016 Formal Business
Slide 29: Formal Business
Charter Hall | 9 November 2016 Formal Business • If there are any Securityholders who are eligible to vote who have not received their yellow card, please see a representative from Link Market Services desk • Those Securityholders holding a red card are not eligible to vote but can speak at the meet
Slide 30: Item: Annual Report
Charter Hall | 9 November 2016 Item 1 • Item 1 – Annual Report - To receive and consider the Annual Report, consisting of the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2016 • Note: There is no requirement for Securityholders to approve these reports 20
Slide 31: Resolutions
Charter Hall | 9 November 2016 Resolutions Items of the Business Resolutions: Resolutions Resolutions 2.1, 2.2, 2.3, and 3 are proposed as ordinary resolutions of Charter Hall Limited, and will be approved if passed by at least 50% of the votes cast by members entitled to vote on the resolution. Res
Slide 32: Resolution 2.1
Charter Hall | 9 November 2016 Resolution 2.1 Resolution 2.1 relates to the re-election of David Clarke as a director of Charter Hall Limited (CHL) Resolution 2.1 is an ordinary resolution of CHL, and will be approved if passed by at least 50% of the votes cast by securityholders entitled to vote on
Slide 33: Resolution 2.1 - Proxies
Charter Hall | 9 November 2016 Resolution 2.1 - Proxies FOR: 319,032,323 (97.49%) OPEN: 164,906 (0.05%) AGAINST: 8,049,822 (2.46%) ABSTAIN: 14,039 23
Slide 34: Resolution 2.2
Charter Hall | 9 November 2016 Resolution 2.2 Resolution 2.2 relates to the re-election Ms Anne Brennan as a Director of Charter Hall Limited Resolution 2.2 is an ordinary resolution of CHL, and will be approved if passed by at least 50% of the votes cast by securityholders entitled to vote on the r
Slide 35: Resolution 2.2 - Proxies
Charter Hall | 9 November 2016 Resolution 2.2 - Proxies FOR: 326,192,523 (99.67%) OPEN: 164,906 (0.05%) AGAINST: 899,861 (0.27%) ABSTAIN: 3,800 25
Slide 36: Resolution 2.3
Charter Hall | 9 November 2016 Resolution 2.3 Resolution 2.3 relates to the election Ms Karen Moses as a Director of Charter Hall Limited Resolution 2.3 is an ordinary resolution of CHL, and will be approved if passed by at least 50% of the votes cast by securityholders entitled to vote on the resol
Slide 37: Resolution 2.3 - Proxies
Charter Hall | 9 November 2016 Resolution 2.3 - Proxies FOR: 298,857,249 (91.32%) OPEN: 164,906 (0.05%) AGAINST: 28,235,135 (8.63%) ABSTAIN: 3,800 27
Slide 38: Resolution 3
Charter Hall | 9 November 2016 Resolution 3 Resolution 3 relates to the Remuneration Report contained in pages 33 to 53 of the Charter Hall Group 2016 Annual Report. “That the Remuneration Report included in the Annual Report for the year ended 30 June 2016 be adopted.” Resolution 3 is an ordinary r
Slide 39: Resolution 3 - Proxies
Charter Hall | 9 November 2016 Resolution 3 - Proxies FOR: 326,199,710 (99.90%) OPEN: 155,129 (0.05%) AGAINST: 186,235 (0.06%) ABSTAIN: 658,411 29
Slide 40: Resolution 4
Charter Hall | 9 November 2016 Resolution 4 Resolution 4 relates to the issue of 119,240 service rights (being a deferred proportion of the STI for FY16) to David Harrison. Resolution 4 is proposed as an ordinary resolution of Charter Hall Limited and Charter Hall Property Trust. 30
Slide 41: Resolution 4 - Proxies
Charter Hall | 9 November 2016 Resolution 4 - Proxies FOR: 326,172,033 (99.87%) OPEN: 165,198 (0.05%) AGAINST: 272,304 (0.08%) ABSTAIN: 589,950 31
Slide 42: Resolution 5.1
Charter Hall | 9 November 2016 Resolution 5.1 Resolution 5.1 these two resolutions relate to the issue of 300,231 performance rights to David Harrison (equivalent to $1,300,000), and an additional grant of 29,947 performance rights to David Harrison (equivalent to $129,667) for the pro rata change i
Slide 43: Resolution 5.1 - Proxies
Charter Hall | 9 November 2016 Resolution 5.1 - Proxies FOR: 326,127,657 (99.85%) OPEN: 165,198 (0.05%) AGAINST: 317,130 (0.10%) ABSTAIN: 589,500 33
Slide 44: Resolution 5.2
Charter Hall | 9 November 2016 Resolution 5.2 Does any securityholder wish to speak on motion in respect of the proposed additional grant of performance rights to David Harrison? 34
Slide 45: Resolution 5.2 - Proxies
Charter Hall | 9 November 2016 Resolution 5.2 - Proxies FOR: 326,123,545 (99.85%) OPEN: 165,198 (0.05%) AGAINST: 317,130 (0.10%) ABSTAIN: 593,612 35
Slide 46: Questions
Charter Hall | 9 November 2016 Questions
Slide 47: Contact Us
Charter Hall | 9 November 2016 Contact Us Richard Stacker Angus Booth Global Head of Investor Relations Group Manager – External Affairs T +61 2 8651 9260 T +61 2 8651 9223 richard.stacker@charterhall.com.au angus.booth@charterhall.com.au 37
Slide 48: Disclaimer
Charter Hall | 9 November 2016 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 Group). This presentation has been prepared without reference to your particular investment objectiv
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