Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — Merger or Acquisition (August 2019)
33 slides from Charter Hall Long Wale Reit's merger presentation, Aug 16, 2019
Slide 1: Acquisitions and equity raising
For personal use only Charter Hall Long WALE REIT Acquisitions and equity raising 16 August 2019 Not for release to US wire services or distribution in the United States Not for release to US wire services or distribution in the United States Exhibition Exchange, VIC
Slide 2: Disclaimer
Acquisitions and equity raising Disclaimer For personal use only Important Notice 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 th
Slide 3: Disclaimer (cont.)
Acquisitions and equity raising Disclaimer (cont.) For personal use only Forward-looking statements This Presentation contains certain “forward-looking statements”, including expectations about the success of the Offer. The words “forecast”, “estimate”, “likely”, “anticipate”, “believe”, “expect”, “
Slide 4: Agenda
For personal use only Agenda 1. Transactions overview 5 Appendix 2. Acquisitions overview 7 A. Pro forma metrics 18 3. Portfolio impact 11 B. Summary of key risks 20 Acquisitions and 4. Equity raising 14 C. International offer restrictions 27 equity raising 5. Conclusion 17 D. Glossary 30 Avi Anger
Slide 5: Transaction overview
Acquisitions and equity raising Transaction overview For personal use only • Charter Hall Long WALE REIT has entered into agreements for the acquisition of a 24.5% interest in a portfolio of 37 Telco Exchange Properties (“Telstra Portfolio”) and a 100% interest in an A-grade office building in Upper
Slide 6: Strategic rationale
Acquisitions and equity raising Strategic rationale Portfolio of long lease properties to secure ASX listed and government tenants For personal use only 1 2 Properties with high quality tenants Delivers a long term and secure income stream The Telstra Portfolio comprises 37 Telco Exchange Properti
Slide 7: Acquisition overview – Telstra Portfolio – CLW 24.5% interest
Acquisitions and equity raising Acquisition overview – Telstra Portfolio – CLW 24.5% interest Portfolio of 37 Telco Exchange Properties leased to Telstra with a WALE of 21 years For personal use only Portfolio overview • Portfolio of 37 Telco Exchange Properties 83% located on the eastern seaboard •
Slide 8: Acquisition overview – Telstra Portfolio (cont.)
Acquisitions and equity raising Acquisition overview – Telstra Portfolio – CLW 24.5% interest (cont.) Geographically diversified portfolio located in CBD markets and metropolitan areas For personal use only QLD Charlotte, QLD Woolloongabba, QLD NSW & ACT WA & SA Haymarket, NSW Wellington, WA Kent St
Slide 9: Acquisition overview – Telstra Portfolio (cont.)
Acquisitions and equity raising Acquisition overview – Telstra Portfolio – CLW 24.5% interest (cont.) For personal use only Image Haymarket Exchange, NSW Kent St Exchange, NSW Chatswood Exchange, NSW North Sydney Exchange, NSW Lonsdale Exchange, VIC Batman Exchange, VIC Box Hill Exchange, VIC Charlo
Slide 10: Acquisition overview – Australian Taxation Office, Upper Mount Gravatt, Brisbane
Acquisitions and equity raising Acquisition overview – Australian Taxation Office, Upper Mount Gravatt, Brisbane A-Grade office building predominantly leased to the Commonwealth Government For personal use only Portfolio overview • A-Grade 14,286sqm office building located in Upper Mount Gravatt, ni
Slide 11: Portfolio snapshot
Acquisitions and equity raising Portfolio snapshot The Acquisitions increase CLW’s WALE and eastern seaboard exposure For personal use only Pre Post Acquisitions Acquisitions Acquisitions Number of properties 118 38 156 Property valuation $2,133m $414m $2,547m Weighted Average Capitalisation Rate (“
Slide 12: Industry diversification
Acquisitions and equity raising Industry diversification1 Increased weighting to secure government and ASX-listed tenants For personal use only Major tenants1 ASX listed: 53% food/liquor 46% Government/ 18% government related 19% ASX listed: 18% banks/non- food/other 25% 9% Multinational 8% 2% Other
Slide 13: Lease expiry profile
Acquisitions and equity raising Lease expiry profile Portfolio WALE of 13.2 years post Acquisitions For personal use only 30 June portfolio Pro forma portfolio WALE pre-Acquisitions WALE post-Acquisitions 12.5 years 13.2 years 24.9% 21.6% 16.6% 14.3% 12.0% 11.3% 10.4% 10.0% 8.6% 8.2% 7.7% 6.4% 5.7%
Slide 14: Sources and uses of funds
Acquisitions and equity raising Sources and uses of funds $261 million fully underwritten institutional placement and accelerated non-renounceable entitlement offer For personal use only The REIT will undertake a fully underwritten Institutional Placement and Entitlement Offer of approximately $261
Slide 15: Equity raising overview
Acquisitions and equity raising Equity raising overview $261 million fully underwritten institutional placement and accelerated non-renounceable entitlement offer For personal use only • A fully underwritten equity raising of approximately $261 million to partially fund the Acquisitions and associat
Slide 16: Timetable
Acquisitions and equity raising Timetable For personal use only Event Date 2019 Trading halt and announcement of the Acquisitions and Offer Friday, 16 August Institutional Entitlement Offer and Placement conducted Friday, 16 August Trading of securities recommences on the ASX on an ‘ex-entitlement’
Slide 17: Conclusion
Acquisitions and equity raising Conclusion For personal use only Acquisition of a long WALE portfolio of properties leased to Telstra (A2 / A- credit rating) and the Commonwealth Government (AAA credit rating) Acquisitions have long WALE of 17.4 years, increasing the REIT’s portfolio WALE to 13.
Slide 18: Appendix A
Appendix A For personal use only Kent Street Exchange, NSW 18
Slide 19: Pro forma balance sheet
Acquisitions and equity raising Pro forma balance sheet For personal use only Post balance sheet date ($m) Jun-19 Acquisitions and Offer Jun-19 pro forma adjustments1 Cash 6.4 6.4 Investment properties 1,328.4 46.2 63.6 1,438.2 Equity accounted investments 551.1 157.5 708.6 Other assets 19.2 (2.4) 1
Slide 20: Appendix B
Appendix B For personal use only Lonsdale Exchange, VIC 20
Slide 21: Summary of key risks
Acquisitions and equity raising Summary of key risks For personal use only Transaction specific risks Telco Exchange Properties Risks in connection with the acquisition of the Telco Exchange Properties include: Acquisition risk • There are restrictions on the right of CLW to transfer its indirect in
Slide 22: Summary of key risks (cont.)
Acquisitions and equity raising Summary of key risks (cont.) For personal use only Property valuation risk Tenant concentration The value of each property held by the REIT, and those it may hold in the future, may fluctuate due to a The majority of the properties comprising the REIT's portfolio are
Slide 23: Summary of key risks (cont.)
Acquisitions and equity raising Summary of key risks (cont.) For personal use only Acquisitions Extension and refinancing In addition to acquiring the assets in connection with these Acquisitions, the REIT will continue to identify new The REIT's ability to refinance or repay its debts as they fall
Slide 24: Summary of key risks (cont.)
Acquisitions and equity raising Summary of key risks (cont.) For personal use only Interest rates Compliance To the extent that interest rates are not hedged, unfavourable movements in interest rates relating to existing The REIT is a managed investment scheme which means that the Responsible Entity
Slide 25: Summary of key risks (cont.)
Acquisitions and equity raising Summary of key risks (cont.) For personal use only Disputes and litigation Operator risk The REIT may in the ordinary course of business be involved in possible litigation and disputes (for example, While the REIT is not an operator of any of the properties in the Lon
Slide 26: Summary of key risks (cont.)
Acquisitions and equity raising Summary of key risks (cont.) For personal use only There are risks associated with any stock market investment. These include, but are not limited to: Consequently the trading price of securities may be influenced by factors non-specific to the REIT and out of • Dilut
Slide 27: Appendix C
Appendix C For personal use only Wellington Exchange, WA 27
Slide 28: International Offer Restrictions
Acquisitions and equity raising International Offer Restrictions For personal use only This document does not constitute an offer of new securities of CLW (“New Securities”) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the
Slide 29: International Offer Restrictions (cont.)
Acquisitions and equity raising International Offer Restrictions (cont.) For personal use only United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the mean
Slide 30: Appendix D
Appendix D For personal use only Homebush Exchange, NSW 30
Slide 31: 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 32: Contact Information
Contact Information For personal use only Avi Anger Kerri Leech Ben Ellis Phillip Cheetham Fund Manager Head of Finance Deputy Fund Manager Head of Listed Investor Charter Hall Charter Hall Charter Hall Relations Long WALE REIT Long WALE REIT Long WALE REIT Charter Hall T: +61 2 8651 9111 T: +61 2 8
Slide 33: Office addresses
For personal use only Sydney Head Office Melbourne Brisbane Perth Adelaide Level 20, No.1 Martin Place Level 14, 570 Bourke Street Level 22, Northbank Plaza Level 5, St Georges Square Level 2, 80 Pirie Street Sydney, NSW, 2000 Melbourne VIC 3000 69 Ann Street 225 St Georges Terrace Adelaide SA 5000
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