Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY2021 Earnings Presentation
36 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 8, 2021
Slide 1: Charter Hall Long WALE REIT FY21 Half Year Results
For personal use only Charter Hall Long WALE REIT FY21 Half Year Results 8 February 2021 Charter Hall Long WALE REIT
Slide 2: Agenda
For personal use only Agenda Avi Anger Fund Manager Charter Hall Long WALE REIT 1 REIT and FY21 half year highlights 2 Financial performance Scott Martin Head of Finance 3 Operational update and portfolio overview Charter Hall Long WALE REIT 4 FY21 earnings guidance 5 Additional Information Darryl C
Slide 3: REIT and FY21 half year highlights
For personal use only REIT and FY21 half year highlights Woolworths Distribution Centre Dandenong, VIC Charter Hall Long WALE REIT
Slide 4: FY21 half year highlights
REIT and FY21 half year highlights FY21 half year highlights1 For personal use only Financial Portfolio Capital performance performance management Operating EPS of 14.5 cents per 14.1 year WALE $697 million security up from 14.0 years at 30 June 2020 of new investments increasing portfolio growth of
Slide 5: REIT highlights
REIT and FY21 half year highlights REIT highlights Largest owner of diversified, long WALE real estate of any ASX listed REIT For personal use only Diversification Portfolio diversified across industrial & logistics, long WALE retail, office, telco exchanges and agri-logistics sectors WALE Long date
Slide 6: Strong track record since IPO
REIT and FY21 half year highlights Strong track record since IPO Return on equity of 10.6%2 p.a. since IPO, with enhanced portfolio quality and diversification For personal use only IPO Jun 17 Jun 18 Jun 19 Jun 20 Dec 201 Portfolio valuation / improved diversification $1,253 million $1,397 million
Slide 7: Financial performance
For personal use only Financial performance Arnott’s Huntingwood Sydney, NSW Charter Hall Long WALE REIT
Slide 8: FY21 half year results snapshot
Financial performance FY21 half year results snapshot For personal use only Key metrics 1H FY20 1H FY21 Movement Statutory profit $80.5m $198.6m $118.1m Operating earnings $52.2m $73.6m $21.4m Operating earnings per security 14.0 cents 14.5 cents 3.6% Distributions per security 14.0 cents 14.5 cents
Slide 9: Financial performance
Financial performance Financial performance For personal use only – 1H FY21 net property income includes approximately $27.5 million from A$m 1H FY20 1H FY21 % change acquisitions settled during or subsequent to 1H FY20 Net property income 74.9 104.4 39.5% – Increase in operating expenses increase a
Slide 10: Balance sheet
Financial performance Balance sheet For personal use only – NTA per security of $4.70 representing a 5.1% increase from 30 June 2020 A$m 30 Jun 2020 31 Dec 2020 – $509 million or 16.5% total asset growth due to: Cash 38.4 16.6 – Acquisitions settled during the period Investment properties 1,852.6 2,
Slide 11: Debt and hedging summary
Financial performance Debt and hedging summary For personal use only – Balance sheet gearing of 29.0%1 is within the target 25 – 35% range – Charter Hall Exchange Investment Trust, in which the REIT has a 50% interest, completed a A$300 million 10-year Medium Term Notes issuance – The REIT has undra
Slide 12: Operational update and portfolio overview
For personal use only Operational update and portfolio overview 76-78 Pitt Street Sydney, NSW Charter Hall Long WALE REIT
Slide 13: Transaction activity
Operational update and portfolio overview Transaction activity $697 million of portfolio enhancing investments For personal use only Long WALE Retail Telco Exchanges $415.1m $281.5m Artist’s impression David Jones, Sydney CBD bp Greenlane, Auckland Bunnings Caboolture, Brisbane 76-78 Pitt Street, Sy
Slide 14: Portfolio snapshot
Operational update and portfolio overview Portfolio snapshot1 $4.5 billion diversified portfolio of high quality real estate For personal use only Key metrics Jun 20 Dec 20 Number of properties 386 459 Property valuation (A$m) 3,630 4,482 Weighted Average Capitalisation Rate (WACR) 5.42% 5.18% Occup
Slide 15: Tenant diversification
Operational update and portfolio overview Tenant diversification Strong and stable tenant base of government, ASX-listed and multinational companies For personal use only Major tenants1 17% 5% 15% 4% 13% 3% 12% 2% 6% 2% 6% 2% 5% 1% 1. Weighted by net passing income as at 31 December 2020, adjusted t
Slide 16: Tenant resilience
Operational update and portfolio overview Tenant resilience High proportion of investment grade tenants For personal use only Independent credit ratings – key tenants1,2 Non rated tenants include: AAA 8% AA+ Non rated 6% 27% AA- 3% BBB 12% A- 36% BBB+ 8% 1. Weighted by net passing income as at 31 De
Slide 17: Sector diversification
Operational update and portfolio overview Sector diversification Resilient and defensive sector exposures For personal use only Portfolio income exposure to key defensive tenant industries1 Telecommunications (17%) Government (15%) Grocery & distribution (14%) Fuel & convenience (13%) 242 Exhibition
Slide 18: Lease expiry profile
Operational update and portfolio overview Lease expiry profile1 Long dated portfolio WALE of 14.1 years For personal use only – Portfolio WALE of 14.1 years, up from 14.0 years as at 30 June 2020 14.1 years 19.5% 12.9% 8.6% 8.1% 6.6% 6.0% 6.1% 5.6% 4.9% 4.3% 3.8% 3.3% 3.4% 2.5% 1.4% 1.3% 0.7% 0.4% 0
Slide 19: Sustainability
Operational update and portfolio overview Sustainability Focus on environmental, social and corporate governance performance For personal use only Progressing with our roadmap to align Charter Hall Group and its funds, including • A in Public Disclosure with TCFD recommendations Charter Hall Long WA
Slide 20: FY21 earnings guidance
For personal use only FY21 earnings guidance Coles Distribution Centre Truganina Melbourne, VIC Charter Hall Long WALE REIT
Slide 21: FY21 earnings guidance
FY21 earnings guidance FY21 earnings guidance For personal use only – The REIT reaffirms its FY21 Operating EPS guidance of no less than 29.1 cents per security, reflecting Operating EPS growth over FY20 of no less than 2.8% (based on information currently available and barring any unforeseen events
Slide 22: Additional information
For personal use only Additional information 242 Exhibition Street Melbourne, VIC Charter Hall Long WALE REIT
Slide 23: NTA reconciliation
Additional information NTA reconciliation 1H FY21 summary For personal use only – As at 31 December 2020, the REIT had a NTA per security of $4.70 NTA per security bridge ($ / security) reflecting an increase of 5.1% from $4.47 as at 30 June 2020 $0.26 $0.03 $4.70 – Movement driven by net valuation
Slide 24: Portfolio revaluations
Additional information Portfolio revaluations 1H FY21 valuation summary For personal use only – 1H FY21 property revaluations resulted in a net Portfolio valuation A$m valuation uplift of $150 million as at 31 December 2020 over prior book values As at 30 Jun 2020 3,630 Net transactions1 696 – Inclu
Slide 25: Debt facility summary
Additional information Debt facility summary Diversified with significant covenant headroom For personal use only Gearing ICR2 – $1.9 billion of look through debt facilities across Debt summary (A$m) – 31 Dec 2020 Limit Drawn Maturity (covenant) (covenant) CLW’s head trust and joint venture partners
Slide 26: Portfolio composition
Additional information Portfolio composition Tenant covenant strength and long WALE leases are a feature of the portfolio For personal use only Equity investments with separate property Balance sheet investments3 level debt facilities1 – Highly rated, investment grade tenants2 in defensive sectors –
Slide 27: Equity investments with separate property level debt facilities
Additional information Equity investments with separate property level debt facilities Property level debt secured by long leases to investment grade tenants1 For personal use only Telco Exchanges Portfolio bp Australia Portfolio LWIP Brisbane Bus Terminal 242 Exhibition Street – Portfolio of 36 net
Slide 28: Geographic and sector diversification
Additional information Geographic and sector diversification1 Eastern seaboard weighted and diversified with sector leading WALE For personal use only Geographic diversification Real estate sector diversification Northern Territory 22.8 year New Zealand & Tasmania 3% WALE Australian Capital 1% Terri
Slide 29: Property investment portfolio: Long WALE retail
Additional information Property investment portfolio Long WALE retail – $1.5 billion1 For personal use only REIT Valuation2 Cap rate3 WALE4 Occupancy4 GLA5 WARR4 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) LWIP portfolio (61 properties) Australia wide 49.9% 505.7 5.12% 13.7 100% 172,443 C
Slide 30: Property investment portfolio: Industrial & logistics
Additional information Property investment portfolio Industrial & logistics – $1.1 billion For personal use only REIT Valuation1 Cap rate2 WALE3 Occupancy3 GLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Arnott’s, Huntingwood NSW 50.0% 213.8 4.25% 31.0 100% 59,002 CPI + 0.5% Nation
Slide 31: Property investment portfolio: Office
Additional information Property investment portfolio Office – $997 million For personal use only REIT Valuation1 Cap rate2 WALE3 Occupancy3 NLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) The Glasshouse, Macquarie Park NSW 50.0% 166.5 5.00% 8.6 100% 35,114 3.4% Westpac Building, Ko
Slide 32: Property investment portfolio: Telco exchanges
Additional information Property investment portfolio Telco exchanges – $643 million For personal use only REIT Valuation1 Cap rate2 WALE3 Occupancy3 Building area4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Telco Exchanges portfolio (36 properties) Australia-wide 24.5% 361.4 4.26%
Slide 33: Property investment portfolio: Agri-logistics
Additional information Property investment portfolio Agri-logistics – $241 million For personal use only REIT Valuation1 Cap rate2 WALE3 Occupancy3 Building area WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Ingham’s portfolio (27 properties) Australia-wide 100.0% 240.5 6.44% 22.8 100
Slide 34: Glossary
Additional information Glossary For personal use only ASX Australian Securities Exchange Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, Balance sheet gearing less cash CLW or the REIT Charter Hall Long WALE REIT DPS Distributions
Slide 35: Board of Directors and fund management
Additional information Board of Directors For personal use only Peeyush Gupta Ceinwen Kirk-Lennox Glenn Fraser Carmel Hourigan David Harrison Chair & Non-executive Director Non-Executive Director Non-Executive Director Charter Hall Group Office CEO Charter Hall Managing Director & Group CEO Fund man
Slide 36: Important notice & disclaimer
For personal use only charterhall.com.au/clw IMPORTANT NOTICE & DISCLAIMER This presentation ("Presentation") has been prepared by and is the sole responsibility of Charter Hall WALE Limited (ABN 20 610 772 202, Australian Financial Services Licence Number 486721) (“Responsible Entity”) as the respo
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