Charter Hall Retail Reit · ASX:CQR
Charter Hall Retail Reit — Merger or Acquisition (October 2024)
10 slides from Charter Hall Retail Reit's merger presentation, Oct 2, 2024
Slide 1: Charter Hall Retail REIT & Hostplus Offer
October 2024 Charter Hall Retail REIT & Hostplus Offer HPI’s Board unanimously recommends that HPI securityholders REJECT the Offer 1
Slide 2: Overview
Overview HPI owns a unique portfolio of high-quality pub assets Charter Hall Retail REIT and Hostplus have made an unsolicited and conditional offer (“Offer”) to acquire all securities in HPI at a cash price of $3.65 per HPI security, less any rights (including distributions) securityholders bec
Slide 3: HPI's unique portfolio of pub assets
HPI’s unique portfolio of pub assets HPI is the only pure-play pub REIT in the S&P / ASX 300 Index • Internal management with strong investor alignment and low management costs • Meaningful scale with secure, growing revenue and attractive lease structure Unique, high-quality portfolio of pubs o
Slide 4: Strong landlord / operator relationship
Strong landlord / operator relationship Australian Venue Co (AVC), HPI’s major pub operator, operates over 200 venues Australia wide, with revenue >$1bn HPI Lease rent review mechanism by income (as at Jun-24) • Experienced operator 2.5% - Lower of • Demonstrated track record of creating value 0.2
Slide 5: Growth prospects
Growth prospects Strong Internal Growth prospects • Demonstrated active management of portfolio with portfolio enhancement achieved through disposal of non-core assets and acquisition of higher quality assets and investment in existing portfolio • Ongoing refurbishment program with AVC expected to
Slide 6: HPI is financially strong and offers growing distributions
HPI is financially strong and offers growing distributions HPI is in a strong capital position HPI debt facilities (as at Jun-24) • Robust balance sheet with gearing of approximately 35% (lower end of target range) with Undrawn Bank Debt - $37.9 million a diversified funding base, including a USPP
Slide 7: Offer materially undervalues HPI
Offer materially undervalues HPI The Offer materially undervalues HPI and fails to recognise the unique and strategic value of HPI’s A-REIT Control Transactions – Premium / (discount) to NTA1,2 portfolio Transaction precedents in the A-REIT sector highlight that control typically passes at a mat
Slide 8: Charter Hall / Hostplus approach is unsolicited and opportunistic
Charter Hall / Hostplus approach is unsolicited and opportunistic HPI recently appointed John White as CEO and Managing Director who has S&P_ASX 200 A-REIT vs. 10 year Bond significant property and capital markets experience 1,900.00 4.600 • Additional skills and experience added to the HPI Board
Slide 9: HPI Board unanimously recommends that securityholders REJECT the Offer
HPI Board unanimously recommends that securityholders REJECT the Offer The Board has considered the offer carefully and unanimously recommends that securityholders REJECT the offer The Board has concluded that the offer is opportunistic, not compelling and materially undervalues HPI: • Recent A-
Slide 10: Important notice
Important notice This presentation and any accompanying annexures (Presentation) has been prepared by Hotel Property Investments Limited ACN 010 330 515 AFSL 479719. Figures stated in this Presentation are as at the date provided at the start of this Presentation and all dollar values are in Austr
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