Charter Hall Social Infrastructure Reit · ASX:CQE
Charter Hall Social Infrastructure Reit — FY2021 Earnings Presentation
31 slides from Charter Hall Social Infrastructure Reit's earnings presentation, Aug 12, 2021
Slide 1: 2021 Full Year Results
2021 Full Year Results Charter Hall Social Infrastructure REIT Charter Hall Social Infrastructure REIT 12 August 2021 2021 Full Year Results
Slide 2: Acknowledgment of Country
Acknowledgment of Country Charter Hall is proud to work with our customers and communities to invest in, develop, and create property assets on land across Australia and New Zealand. We pay our respects to the traditional owners, their elders past and present and value their care and custodianship o
Slide 3: Agenda
Travis Butcher Fund Manager Agenda 1. Key Highlights and Strategy 2. Financial Performance Scott Martin 3. Operational Performance Head of Finance - Diversified 4. Childcare Industry Overview 5. Outlook 6. Additional Information Nathan Chew Deputy Fund Manager Cover: 14 Stratton Street, Newstead, QL
Slide 4: Key Highlights and Strategy
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT REIT 1 CQE Centre, Hawthorn, VIC Key Highlights and Strategy 2021 2021Full FullYear YearResults Results
Slide 5: Key Highlights
Key Highlights and Strategy Key Highlights FY22 distribution guidance of 16.7 cpu, a 6.4% increase from FY21 EPU / DPU1 Gearing2 Investment Capacity2 16.0 / 15.7c 24.5% $ 207m WALE Gross Assets NTA per Unit 15.2yrs $ 1.6bn $ 3.25 Increased from 12.7 years at Increased by 13.3% from Increased by 11.3
Slide 6: Our Strategy
Key Highlights and Strategy Our Strategy To provide investors with secure income and capital growth through exposure to social infrastructure property Enhancing income sustainability and Targeting ongoing Portfolio resilience capital growth curation ‒ Improving the quality of tenants ‒ Focus on asse
Slide 7: Delivering on Strategy
Key Highlights and Strategy Delivering on Strategy An active year enhancing income resilience and delivering capital growth 1 2 3 Enhancing income Targeting ongoing Portfolio Strategic initiatives delivered sustainability capital growth curation and resilience Two social infrastructure acquisitions
Slide 8: Financial Performance
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT REIT 2 CQE Centre, Northcote, VIC Financial Performance 2021 2021Full FullYear YearResults Results
Slide 9: Financial Performance
Financial Performance Financial $m FY20 FY21 % change Performance Net Property Income1 66.9 72.0 7.6 Distribution Income 2.6 2.2 (15.4) - Net property income increased by $5.1 million Other Income 0.1 0.2 100.0 or 7.6% on the previous corresponding period (pcp) driven by: Net Operating Income 69.6 7
Slide 10: Balance Sheet
Financial Performance Balance $m 30 June 2020 30 June 2021 Sheet Cash 75.6 5.3 Investment Properties 1,201.3 1,448.0 - $255 million growth in investment properties1, Investment in JV (Brisbane Bus Terminal) 26.4 35.3 up 20.9% driven by: Securities 44.9 43.4 - Net property revaluation uplift of $119.
Slide 11: Capital Management
Financial Performance Capital Management Debt & Hedging Summary as at 30 June 2020 30 June 2021 Debt Facilities Limit ($m) 500.0 600.0 - Facilities increased to $600 million in May 2021 Debt Drawn Amount ($m) 286.0 300.0 Weighted Average Debt Maturity (years) 4.1 4.1 - Diversified funding sources wi
Slide 12: Operational Performance
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 3 CQE Centre, Kensington, WA Operational Performance 2021 2021Full FullYear YearResults Results
Slide 13: Portfolio Summary
Operational Performance Portfolio Summary WALE increased from 12.7 years to 15.2 years June 2020 June 2021 Number of operating properties 371 341 – 107 new leases with average expiry of 20 years (average increase of 13 years) Number of tenants 35 38 – 4 acquisitions and 10 completed developments wit
Slide 14: Portfolio Summary
Operational Performance Portfolio Summary Average fixed rent reviews of 3.0% Tenant profile by % of annual rent: June 2021 Geographical profile by % of annual rent: June 2021 now apply to 73.2% of portfolio Goodstart Early Learning TAS/NT SA 1% 42% 6% – Key portfolio income metrics: WA 6% – Top 5 te
Slide 15: FY21 Acquisitions
Operational Performance FY21 Acquisitions Mater Headquarters & Training Facilities Emergency Command Centre 14 Stratton Street, Newstead, Brisbane (Queensland) 33 Richmond Road, Keswick, Adelaide (South Australia) The property is an A-grade, 11-storey building with 5-star NABERs rating. The property
Slide 16: Childcare — Continued curation
Operational Performance Childcare — Continued curation Acquisitions Total Number 3 Portfolio curation improving the Value ($m) 1 12.6 quality of properties and tenants Average Value ($m) 4.2 Average Places per Centre 80 Average WALE 20.0 - 3 childcare acquisitions totalling $12.6 million Average SEI
Slide 17: Portfolio Valuations
Operational Performance Portfolio Valuations FY21 Valuations No. Valued Value ($m) Yield (%) Mvmt (%) Childcare Portfolio1 326 1,133.9 5.7 10.8 Valuation uplift highlights portfolio Brisbane Bus Terminal 1 61.0 4.5 16.7 resilience and essential nature of TOTAL 327 1,194.9 assets - 326 childcare prop
Slide 18: Childcare Development Pipeline
Operational Performance Childcare Development Pipeline 10 developments completed in FY21 with a further 9 due for completion in FY22 Narre Warren VIC Key development & pipeline metrics FY21 Kilsyth VIC Completed Developments 10 East Bentleigh VIC Valuation upon Completion ($m) 69.7 Frankston South V
Slide 19: Sustainability
Operational Performance Sustainability On-going focus on Charter Hall Group and Awarded a environmental, social and its funds including CQE, recognised on 2020 PRI B rating for Public corporate governance Leaders Group for Disclosure performance Climate Reporting CQE Centre, Elwood, Vic Environment
Slide 20: Childcare Industry Overview
4 Childcare Industry Overview Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 2021 2021Full FullYear YearResults Results
Slide 21: Childcare Industry
Childcare Industry Overview Childcare Industry Key drivers of increasing childcare demand continue − Essential nature of childcare demonstrated during the COVID-19 pandemic Government funding to childcare sector5 and associated restrictions 12.0 − Additional government funding of $1.7 billion per an
Slide 22: Outlook
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 5 Brisbane Bus Terminal, Eagle Farm, QLD Outlook 2021 2021Full FullYear YearResults Results
Slide 23: Outlook
Outlook Outlook − CQE is well positioned, with resilient and growing income, low gearing and $207 million of investment capacity − Continue to execute on strategy to pursue new social infrastructure opportunities − Recent acquisitions and completion of developments to drive earnings and distribution
Slide 24: Additional Information
Charter CharterHall HallSocial SocialInfrastructure InfrastructureREIT 6 CQE Centre, Bexley, NSW Additional Information 2021 2021Full FullYear YearResults Results
Slide 25: Portfolio Overview
Additional Information Portfolio Overview − Majority of leases in the portfolio are triple net with As at 30 June 2021 No. Value ($m) % of Total Passing Yield (%) fixed rental increases Assets NSW/ACT 87 280.2 18.1 5.8 − Total land holdings of 86.9 hectares: QLD 120 414.1 26.8 5.7 VIC 78 359.5 23.2
Slide 26: NTA Reconciliation
Additional Information NTA Reconciliation NTA per unit: June 2020 to June 2021 - As at 30 June 2021, CQE had a NTA per unit of $3.25 reflecting an increase of 11.3% from $2.92 $0.05 $0.02 $3.25 as at 30 June 2020 $0.30 - Increase in NTA per unit primarily driven by: - property revaluation uplift of
Slide 27: Statutory Profit Reconciliation
Additional Information Statutory Profit Reconciliation 30 June 2020 30 June 2021 Statutory Profit Reconciliation ($m) ($m) Operating Earnings 51.1 58.0 Net fair value gain on investment properties 42.7 100.6 (Loss)/gain on sale of investment properties (4.1) 1.3 Net (loss)/gain on derivative financi
Slide 28: Key Statistics
Additional Information Key Statistics Financial & Capital Management Metrics FY15 FY16 FY17 FY18 FY19 FY20 FY21 NTA ($) 1.82 2.14 2.51 2.78 2.96 2.92 3.25 NTA Growth (%) 21.3 17.6 17.3 10.8 6.5 (1.4) 11.3 DPU (c) – Ordinary 12.8 13.4 14.2 15.1 16.0 16.0 15.7 DPU (c) – Special - - - - - - 4.0 DPU Gro
Slide 29: Glossary
Additional Information Glossary ACECQA Australian Children’s Education and Care Quality Authority ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt less cash to total tangible assets, less cash CQE Charter Hall Social Infrastructure REIT CPI Consumer
Slide 30: Further information
Additional Information Further information Travis Butcher Scott Martin Nathan Chew Lula Liossi Philip Cheetham Fund Manager – CQE Head of Finance – Deputy Fund Manager – Investor Relations Manager Head of Listed Diversified CQE Investor Relations Charter Hall Group Charter Hall Group Charter Hall Gr
Slide 31: Important Notice & Disclaimer
charterhall.com.au/cqe IMPORTANT NOTICE & DISCLAIMER Charter Hall Social Infrastructure Limited ACN 111 338 937; AFSL 281544 (“CHSIL”) has issued this presentation in its capacity as the responsible entity of Charter Hall Social Infrastructure REIT ARSN 102 955 939 (“CQE). This presentation has been
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