Charter Hall Group · ASX:CHC
Charter Hall — Macquarie Australia Conference 2023
33 slides from Charter Hall's conference presentation, May 2, 2023
Slide 1: Charter Hall Group – Macquarie Conference Sydney
Charter Hall $ al MACQUARIE _ CONFERENCE SYDNEY Charter Hall Group Ae i £ i ae
Slide 2: Acknowledgement of Country
Acknowledgement of Country Charter Hall is proud to work with our customers and communities to invest in, develop and manage properties on land across Australia. We pay our respects to the Traditional Owners, their Elders past, present and emerging and recognise their continuing culture and contribu
Slide 3: Agenda
Agenda 1. Core Investment Environment 2. Australian Real Estate Environment 3. The Charter Hall Advantage Cover: Southern Cross, Melbourne (CPOF) Left: 1 Shelley Street, Sydney (CPOF) Charter Hall Group Macquarie Australia Conference 2023 3
Slide 4: Core Investment Environment
1 Core Investment Environment Exploring the factors which support Australia’s attractiveness for real estate investment Charter Hall Group Macquarie Australia Conference 2023
Slide 5: Australian investment profile
Core Investment Environment Australian investment profile 2nd 1st Best economic risk Highest number of cities score globally in global rankings A highly-ranked destination Cities on the forefront of for capital preservation global liveability standards AAA $274,000usd Government ratings in Median we
Slide 6: Australia has highest Government credit rating and low debt to GDP
Core Investment Environment Australia shares the highest Government credit rating and has amongst the lowest debt to GDP ratios in the world Sovereign debt rating, by country General government debt as % of GDP Country S&P Rating Moody's Rating 300 Australia AAA Aaa 263 262 Canada AAA Aaa 250 German
Slide 7: Australia is an attractive destination for global capital
Core Investment Environment Australia is considered an attractive destination for global capital Global economic risk scores Ranking key investment benchmarks India Australia US UK China India Japan Korea Singapore Indonesia Philippines Malaysia Financial freedom 1 3 3 160 106 37 37 3 China Trade fr
Slide 8: A diversified service economy complementing the resource sector
Core Investment Environment A diversified service economy complementing the resource sector The economy has benefited from the growth of the services sector 14% Mining 13% Health Care and Social Assistance Financial and Insurance Services Mining (11.1%) Professional, Scientific and Technical Service
Slide 9: Younger and faster growing population
Core Investment Environment Australia has a younger and faster growing population – the highest forecast growth amongst advanced economies Population growth comparison (Average Annual Growth %) Median Age by Countries Past 20 Years 5 Year Forecast Japan 48 1.8% Germany 44 1.3% Netherlands 41 France
Slide 10: Wealthiest country with one of the largest superannuation markets
Core Investment Environment Australia is the wealthiest country in the world with one of the largest superannuation markets Median wealth per adult (USD) Global pension assets 300 10-year 1-Year Thousands Total assets Total assets Assets/ CAGR CAGR 2011 2021 GDP ratio 250 (Local (Local (USD billion)
Slide 11: Trade liberalisation has promoted world-leading trade volume growth
Core Investment Environment Australia strong trade liberalisation has promoted world-leading trade volume growth Australia has 18 Free Trade Agreements Global Trade Volume Growth (15 Year CAGR) Australia 7.1% South Korea 2014 Hong Kong, China 5.0% United States 2015 Japan 2015 China 2015 Korea 4.7%
Slide 12: Australian Real Estate Environment
2 Australian Real Estate Environment Inghams, MidWest Logistics Hub, Trugnanina (CPIF) Charter Hall Group 2023 Half Year Macquarie Results Australia Conference 2023
Slide 13: Outperforming real estate market
Australian Real Estate Environment Outperforming real estate market 1st 1st Strongest returns Australia has preferred real estate with low volatility markets in Asia Pacific region Superior risk-adjusted returns when Sydney and Melbourne are the benchmarked against major markets preferred investor m
Slide 14: Australia has preferred real estate markets
Australian Real Estate Environment Australia has preferred real estate markets Preferred Investment Locations for 2023 Australia consistently ranks in top 3 preferred APAC investment destinations 100% Year #1 #2 #3 90% 86% 83% 2023 Sydney – Residential Melbourne – Residential Sydney - Office 80% Syd
Slide 15: Economic and population growth generating demand for real estate
Australian Real Estate Environment Australia’s economic and population growth generating continued demand for real estate Annual Economic and Population Growth Forecasts (% pa), 2022-27 Additional Real Estate Requirements from 10-year Population Growth 2.0% Population Growth Incremental Incremental
Slide 16: Global Industrial and Logistics sector performance benchmarks
Australian Real Estate Environment Global Industrial and Logistics sector performance benchmarks Higher returns with lower volatility | 15 year analysis Australia Canada United States UK France Germany Singapore Netherlands Japan Average Returns 10.9% 9.9% 10.9% 9.3% 9.0% 8.7% 6.6% 8.3% 6.1% Volatil
Slide 17: Key factors influencing the outlook of the industrial sector
Australian Real Estate Environment Key factors influencing the outlook of the industrial sector Low availability of stock Structural shift in demand underway Annual Prime Annual rents have increased by fastest pace since 1989 Rental Growth E-commerce penetration rate to move from 20th to the 5th hig
Slide 18: Global Office sector performance benchmarks
Australian Real Estate Environment Global Office sector performance benchmarks Higher returns with lower volatility | 15-year analysis Australia Canada Korea Hong Kong UK Germany Netherlands France United States Singapore* Japan Average Returns 8.1% 6.6% 7.3% 7.2% 5.5% 5.9% 4.8% 5.1% 4.5% 5.5% 3.2%
Slide 19: Key factors influencing the outlook of the office sector
Australian Real Estate Environment Key factors influencing the outlook of the office sector Significant Demand for quality, modern assets Australia has led the return to office Change in occupied stock over past two years Occupancy vs. pre-covid levels* 20 9 10 0 -10 -4 -5 Prime Secondary -20 -9 -12
Slide 20: Global Neighbourhood Shopping Centre performance benchmarks
Australian Real Estate Environment Global Neighbourhood Shopping Centre performance benchmarks Higher returns with lower volatility | 15-year analysis Australia Canada United States France UK Average Returns 6.7% 6.3% 4.8% 5.4% -2.4% Volatility (%) 6.6% 4.8% 8.4% 6.9% 11.3% Sharpe Ratio 1.01 1.32 0.
Slide 21: Key factors influencing the outlook of the retail sector
Australian Real Estate Environment Key factors influencing the outlook of the retail sector Resilient convenience retailing demand Solid price growth across convenience retailing Food Household goods Clothing Department stores Feb-21 Feb-22 Feb-23 20,000 Other Outdoor and takeaway food 16,000 14,000
Slide 22: The Charter Hall Advantage
3 Charter Hall Group Glendenning (CLP) 2023 Half Year Results The Charter Hall Advantage Glendenning Logistics Estate, 56-62 Glendenning Road Charter Hall Group Macquarie Australia Conference 2023
Slide 23: Charter Hall Group
The Charter Hall Advantage Charter Hall Group $ 88bn $ 73bn Group Funds Under Management Property Funds Under Management 1,681 ~4,500 8.2yrs Properties Tenants WALE 3 50+ $ 3.0bn ASX Listed REITs Property Funds & Co-investment in Property Partnerships Funds & Partnerships $ 41.2bn $ 6.5bn $ 15.4bn G
Slide 24: Charter Hall has the advantages of scale
The Charter Hall Advantage Charter Hall has the advantages of scale Diversified Platform Cross-sector tenant relationships: SLB opportunities SC Retail Social Infrastructure Industrial & Logistics $73.0bn Office Long WALE Retail Breadth of capital sources: ~100 capital partners Platform transaction,
Slide 25: Property fund management portfolio
The Charter Hall Advantage Property fund management portfolio Largest diversified property portfolio in Australia Property FUM by equity source Property FUM by sector WALE by sector SC Retail Social $4.5bn Infrastructure 6.2% Direct (Unlisted) Equity Wholesale (Unlisted) Equity $3.7bn $10.9bn $48.2b
Slide 26: Cross-sector tenant relationships drive deployment opportunities
The Charter Hall Advantage Cross-sector tenant relationships drive deployment opportunities – The top 20 tenants represent 56% of property platform income – 71% repeat tenants and 28% multi-sector tenants across more than 4,500 leases Top 20 platform tenants by net income 17.6% 5.2% 4.3% 4.1% 4.1% 4
Slide 27: Strong cross-sector customer relationships
The Charter Hall Advantage Strong cross-sector customer relationships We leverage our deep, cross sector tenant relationships to achieve pre-commitments for our market leading development pipeline 30-55 Main Beach Road, 28B McPherson Street, 570 Bourke Street, 343 Albert Street, 2 Park Street, Trade
Slide 28: Key Partnership Deals
The Charter Hall Advantage Key Partnership Deals We are custodians of Partner Sector Tenant capital engaged to invest Long WALE Retail Office and manage on behalf of Long WALE Retail our investor customers Long WALE Retail Industrial Industrial Various ~100 Office Various Institutional Investors Off
Slide 29: Market leading access to deal flow and transaction execution
The Charter Hall Advantage Market leading access to deal flow and transaction execution capability #1 Most active capital transactions team over last 5 years $41.2bn $10.0bn+ Last 5 years’ gross Last 10 years’ sale and transactions leaseback transactions As at 31 December 2022 Charter Hall Group 2 C
Slide 30: Development capability drives deployment and funds growth
The Charter Hall Advantage Development capability drives deployment and funds growth Artist impression: 555 Collins Street, Melbourne (CPOF) Completion value($m)1 Completions Committed Uncommitted Total (last 12 projects projects4 pipeline5 $5.1bn months) Industrial & Logistics 1,046 3,166 2,646 5,8
Slide 31: Active real estate treasury platform across markets
Charter Hall Platform Active real estate treasury platform across markets $28.0bn Woolworths Distribution Centre, Dandenong (CPIF, CLW & DIF3) Platform debt book 7 $3.4bn Rated entities in the platform Green Financing As at 31 December 2022 Charter Hall Group Macquarie Australia Conference 2023 31
Slide 32: Summary
The Charter Hall Advantage Summary 1 2 Leading advanced economy Outperforming real and global safe haven estate markets Underlying population growth and Superior risk-adjusted returns when wealthy population continues to create benchmarked against major markets future investment opportunities 3 4 Ch
Slide 33: Further information
Further information Investor Relations Tel 1300 365 585 (within Australia) +61 2 8651 9000 (outside Australia) Email reits@charterhall.com.au charterhall.com.au/chc IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by Charter Hall Funds Management Limited ACN 082 991 786 (together, w
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