Charter Hall Group · ASX:CHC
Charter Hall — Shareholder Meeting (November 2014)
56 slides from Charter Hall's shareholder meeting presentation, Nov 12, 2014
Slide 1: Chairman's Address – 2014 Annual General Meeting
For personal use only Charter Hall Group Annual General Meeting 2014 - Chairman’s address Charter Hall Group 2014 Annual General Meeting Good afternoon. On behalf of the Board of Directors it is my pleasure to welcome you all to the 2014 Annual General Meeting of Charter Hall Group. My name is Kerry
Slide 2: Chairman's address: retirement and new appointment
• Colin McGowan, Non-Executive Director who Chairs the Valuations Committee and is a member of the RHRC and Nominations Committee, and the • Finally, I introduce our Joint Managing Directors, David Harrison and David Southon. For personal use only Also present today and I welcome: • Tracey Jordan, o
Slide 3: New way of working and securityholder returns
New Way of Working Our new way of working, with its focus on three of our five core values, namely: • accountability, • collaboration, and For personal use only • passion is something that I am proud to say has had a positive impact on our people, and upon our business. Charter Hall’s Sydney work en
Slide 4: Corporate governance
determined from the financial research survey covering more than 2,000 stock ratings from buy side fund managers and sell side analysts. Committed to Corporate Governance Charter Hall has committed itself to maintaining the highest possible standards of corporate For personal use only governance as
Slide 5: Charter Hall Group 2014 Annual General Meeting
12 November 2014 Charter Hall Group For personal use only 2014 Annual General Meeting
Slide 6: Agenda
Charter Hall Group Agenda For personal use only 1 Board of Directors 2 Chairman’s address: Kerry Roxburgh 3 Joint Managing Directors’ address: David Harrison and David Southon 4 Formal business 5 Questions Charter Hall Group 2014 AGM 1
Slide 7: Board of Directors
Charter Hall Group Board of Directors For personal use only Kerry Roxburgh Chairman and Non-Executive Director Anne Brennan David Clarke David Deverall Philip Garling Peter Kahan Colin McGowan Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive D
Slide 8: Chairman retirement and new appointment
Charter Hall Group Chairman retirement and new appointment For personal use only • Chairman, Kerry Roxburgh retires at the end of the Annual General Meeting • Kerry has chaired the Group during its first decade as an AREIT, in which time core FUM has grown from $400m to $12.1bn today • David Clarke,
Slide 9: Chairman's Address
Chairman’s Address Kerry Roxburgh For personal use only
Slide 10: Our vision
Charter Hall Group Our vision For personal use only OUR VISION The smart property choice OUR PURPOSE To grow investor wealth through smart property outcomes OUR VALUES INTEGRITY ACCOUNTABILITY PASSION EXPERTISE COLLABORATION OUR STRATEGY To use our specialist property expertise to access, deploy, ma
Slide 11: New way of working
Charter Hall Group New way of working For personal use only • Our new way of working is about supporting and empowering our people so they can they achieve the best possible solutions for themselves, the business and all our customers • No.1 Martin Place is a physical manifestation of this and our e
Slide 12: Solid total securityholder returns
Charter Hall Group Solid total securityholder returns For personal use only • Total securityholder return for the 12 months to 30 September 2014: 17.1% • Best performance in A-REIT index over 3 years and 5 years: 43.5% and 18.3% respectively Total performance over 1, 3 and 5 years (% pa) to 30 Septe
Slide 13: Solid earnings and distribution growth
Charter Hall Group Solid earnings and distribution growth For personal use only • Statutory profit after tax of $82.1m for the 12 months ending 30 June 2014, up from $54.8m • Increase in operating earnings per security to 25.31cps for FY14, up 10.4% • Distribution of 22.3cps for FY14, up 10.4% Opera
Slide 14: Corporate Responsibility and Sustainability
Charter Hall Group Corporate Responsibility and Sustainability For personal use only Sustainability continues to be a core part of how we manage risks and enhance value across our business Sustainable business To grow investor wealth by delivering smart property outcomes Environment To actively focu
Slide 15: Awards
Charter Hall Group Charter Hall awards Group awards won over the last 2 years For personal use only 2014 Annual Property Funds Industry Forum Unlisted Property Fund of the Year Property Investment Research Winner: Charter Hall’s Direct WorkZone Trust 2014 The API Excellence in Property Awards Common
Slide 16: Committed to corporate governance
Charter Hall Group Committed to corporate governance For personal use only • Independent Chairman • Board has majority of Non-Executive Directors • Across the Group, Responsible Entity Boards and Fund Investment Committees are chaired by an Independent Director or Member, and have an independent Aud
Slide 17: Joint Managing Directors' Address
Joint Managing Directors’ Address David Harrison and David Southon For personal use only
Slide 18: Key achievements for financial year 2014
Charter Hall Group Key achievements for financial year 2014 For personal use only Total OEPS and DPS Property Securityholder growth Investment return of of 10.4% yield 7.7% 16.3%1 $3.0bn Australian FUM $1.45bn gross transactions up 15% to equity inflows $1.8bn of acquisitions $1.2bn of divestments $
Slide 19: Consistent delivery on strategy in FY14
Charter Hall Group Consistent delivery on strategy in FY14 For personal use only • Focus on long WALE investment assets ACCESS DEPLOY MANAGE INVEST Access to multiple Creating value through Property funds Investing alongside our equity sources attractive investment management, asset capital partners
Slide 20: Earnings composition
Charter Hall Group Earnings composition For personal use only FY14 operating earnings of $81.2m1, up 18.0% from $68.8m • Property Investments operating earnings growth of 11.7% • Property Funds Management operating earnings growth of 26.6% 90 $84.3m 80 $71.8m 70 $34.6m (41%) 60 $27.3m (38%) Property
Slide 21: Property Investments
Charter Hall Group Charter Hall Property Investments For personal use only • Charter Hall Group co-invests with capital partners • Property Investment portfolio constructed to optimise operating earnings and NTA growth • Targeting long WALE property portfolios leased to quality tenants with sustaina
Slide 22: Property Investment portfolio – 9.6 year WALE
Charter Hall Group Property Investment portfolio – 9.6 year WALE For personal use only • Charter Hall has actively reweighted its portfolio over the past three years to top performing asset classes, whilst focusing on enhancing lease metrics within office assets • Non-discretionary retail and prime
Slide 23: Case study – Long WALE Investment Partnership
Charter Hall Group Case study – Long WALE Investment Partnership For personal use only • Charter Hall launched the Long WALE Investment Partnership with the initial purchase of a >$600m portfolio of hospitality assets • Solid inflation hedge characteristics with secure long term cash-flow, underlyin
Slide 24: Funds management portfolio
Charter Hall Group Funds management portfolio For personal use only Portfolio No. of No. of Gross WALE Occupancy Average cap Size ($bn) properties tenants income ($m) (years) (%) rate (%) 30 September 20141 12.1 262 2,263 1,048 7.9 97.0 7.6 Asset type diversification WALE by sector 30 September 2014
Slide 25: Strong Australian funds under management growth
Charter Hall Group Strong Australian funds under management growth For personal use only • Exited all offshore property interests during FY14 • Australian funds under management (FUM) growth of 15%, or $1.5bn in FY14 to $11.5bn • 30 September 2014 post LWIP, Australian property FUM is $12.1bn Total
Slide 26: Property funds management
Charter Hall Group Property funds management For personal use only • Integrated service model with over Property Funds Management 350 employees and 5 Australian Earnings Drivers offices 14 40% • Investment management 35% 12 • Fund and portfolio management 30% • Transactions 10 PFM EBITDA Margin (%)
Slide 27: Property transactions
Charter Hall Group Property transactions For personal use only • During FY14, 32 properties were acquired for a total $1.8bn, and 24 properties sold for $1.2bn • 436 leasing transactions for FY14, over more than 335,000sqm Coomera City Centre, QLD Australia Post Distribution Centre, Rowville, VIC Se
Slide 28: Development adding to fund performance
Charter Hall Group Development adding to fund performance For personal use only • Redevelopment opportunities undertaken to Development activity On completion value (current projects underway) enhance both income yield and total returns Retail $164m • In-house development skills are a core competenc
Slide 29: Property market overview
Charter Hall Group Property market overview For personal use only While investment drivers are very strong for property as a broad asset class, tenancy and rental drivers differ between sectors. Office Sector Retail Sector Industrial Sector CBD Net Absorption vs Corporate Revenues 20yr Compound Reta
Slide 30: Strategy
Strategy For personal use only Strategy • Continuing to deliver strong fund performance for our investors • Securing quality assets within our core property sectors • Active management of our property portfolio • Investing alongside capital partners • Focus on high quality growing earnings streams •
Slide 31: Upgrade to FY15 earnings per security guidance
Charter Hall Group Upgrade to FY15 earnings per security guidance For personal use only • Australian property income to debt spreads remain attractive for domestic and offshore investors • Charter Hall continues to focus on investing in assets with strong tenant covenants and long leases, delivering
Slide 32: Formal Business
For personal use only Formal Business
Slide 33: Formal Business
Formal Business For personal use only • If there are Securityholders who are eligible to vote who have not received their yellow voting card, please see a representative from Link Market Services at the registration desk • Securityholders holding a red card are not eligible to vote but can speak at
Slide 34: Item – Annual Report
Item 1 For personal use only • Item 1 – Annual Report – To receive and consider the Annual Report, consisting of the Financial Report, Directors’ Report and Auditors Report for the financial year ended 30 June 2014. • Note: There is no requirement for Securityholders to approve these reports Charter
Slide 35: Resolutions
Resolutions For personal use only Resolutions: Resolutions 2.1, 2.2, 2.3, and 3 are proposed as ordinary resolutions of Charter Hall Limited (CHL) and will be approved if passed by at least 50% of votes cast by securityholders entitled to vote on the resolution. Resolutions 4.1 and 4.2, 5.1 and 5.2,
Slide 36: Resolution 2.1
Resolution 2.1 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr Peter Kahan, a Director of CHL retiring in accordance with the CHL Constitution, is re- elected as a Director of CHL” Resolution 2.1 is an ordinary resolution of CHL, and wil
Slide 37: Resolution 2.1 - Proxies
Resolution 2.1 - Proxies For personal use only FOR: 286,486,711 99.78% OPEN: 179,324 0.06% AGAINST: 462,916 0.16% ABSTAIN: 24,670 Charter Hall Group 2014 AGM 32
Slide 38: Resolution 2.2
Resolution 2.2 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr David Harrison, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL” Resolution 2.2 is an ordinary resolution of CHL, and w
Slide 39: Resolution 2.2 - Proxies
Resolution 2.2 - Proxies For personal use only FOR: 286,944,627 99.94% OPEN: 179,324 0.06% AGAINST: 0 ABSTAIN: 29,670 Charter Hall Group 2014 AGM 34
Slide 40: Resolution 2.3
Resolution 2.3 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr David Clarke, appointed as an additional Director of CHL by the Board, is elected as a Director of CHL” Resolution 2.3 is an ordinary resolution of CHL, and will be approved
Slide 41: Resolution 2.3 - Proxies
Resolution 2.3 - Proxies For personal use only FOR: 275,620,269 95.99% OPEN: 191,181 0.07% AGAINST: 11,317,501 3.94% ABSTAIN: 24,670 Charter Hall Group 2014 AGM 36
Slide 42: Resolution 3
Resolution 3 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: "That the Remuneration Report included in the Annual Report for the year ended 30 June 2014 be adopted.“ Resolution 3 is an ordinary resolution of CHL, and will be approved if passed by
Slide 43: Resolution 3 - Proxies
Resolution 3 - Proxies For personal use only FOR: 285,484,651 99.78% OPEN: 137,520 0.05% AGAINST: 492,971 0.17% ABSTAIN: 18,026 Charter Hall Group 2014 AGM 38
Slide 44: Resolution 4.1
Resolution 4.1 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 81,861 service rights (being a d
Slide 45: Resolution 4.1 - Proxies
Resolution 4.1 - Proxies For personal use only FOR: 285,047,181 99.63% OPEN: 141,116 0.05% AGAINST: 906,381 0.32% ABSTAIN: 38,490 Charter Hall Group 2014 AGM 40
Slide 46: Resolution 4.2
Resolution 4.2 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 95,504 service rights to Mr Davi
Slide 47: Resolution 4.2 - Proxies
Resolution 4.2 - Proxies For personal use only FOR: 285,047,181 99.63% OPEN: 141,116 0.05% AGAINST: 906,381 0.32% ABSTAIN: 38,490 Charter Hall Group 2014 AGM 42
Slide 48: Resolution 5.1
Resolution 5.1 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 210,730 performance rights to Mr
Slide 49: Resolution 5.1 - Proxies
Resolution 5.1 - Proxies For personal use only FOR: 285,550,733 99.81% OPEN: 141,116 0.05% AGAINST: 407,829 0.14% ABSTAIN: 33,490 Charter Hall Group 2014 AGM 44
Slide 50: Resolution 5.2
Resolution 5.2 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 248,371 performance rights to Mr
Slide 51: Resolution 5.2 - Proxies
Resolution 5.2 - Proxies For personal use only FOR: 285,550,733 99.81% OPEN: 141,116 0.05% AGAINST: 407,829 0.14% ABSTAIN: 33,490 Charter Hall Group 2014 AGM 46
Slide 52: Resolution 6
Resolution 6 For personal use only To consider, and if thought fit, pass the following ordinary resolution of CHL: "That, for the purposes of rule 43(b) of the Constitution and Listing Rule 10.17, the maximum aggregate remuneration that may be paid to all of the non-executive directors of CHL for th
Slide 53: Resolution 6 - Proxies
Resolution 6 - Proxies For personal use only FOR: 285,564,001 99.79% OPEN: 179,324 0.06% AGAINST: 410,015 0.14% ABSTAIN: 21,632 Charter Hall Group 2014 AGM 48
Slide 54: Questions
For personal use only Questions
Slide 55: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Charter Hall Group (being Charter Hall Limited (ABN 57 113 531 150) and Charter Hall Funds Management Limited (ABN 31 082 991 786) (AFSL 262861) as the responsible entity for Charter Hall Property Trust (ARSN 113 339 147)) (the
Slide 56: For personal use only
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Charter Hall Group — Shareholder Meeting (November 2014) on 6ix