Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY23 Earnings Presentation
33 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 9, 2023
Slide 1: CLW 2023 Half Year Results
CLW 2023 HALF YEAR RESULTS Charter Hall Charter Hall Long WALE REIT 2022 FullLong WALE REIT Year Results
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. Overview and FY23 half year highlights 2. Financial performance 3. Operational update and portfolio overview 4. FY23 guidance 5. Additional information Cover: Metcash Distribution Centre, Perth WA Left: bp Caringbah, Sydney NSW Charter Hall Long WALE REIT 2023 Half Year Results
Slide 4: Overview and FY23 half year highlights
1 Overview and FY23 half year highlights Toyota Material Handling Charter CharterHall HallLong RetailWALE REIT REIT Brisbane, QLD 2023 Half Year Half Year FY21 Results Results
Slide 5: Best in class diversified real estate portfolio
Overview and FY23 half year highlights Best in class diversified real estate portfolio $7.2 billion portfolio value High quality diversified portfolio 550 53% 79% Long WALE 11.8 years properties NNN Eastern leases Seaboard provides portfolio income security Crow’s Nest Hotel, Sydney NSW Charter Hall
Slide 6: 6.1% distribution yield generated from blue-chip tenants
Overview and FY23 half year highlights 6.1% distribution yield1 generated from blue-chip tenants in resilient industries Diversified sector exposure2 Simon National Carriers Agri-logistics Brisbane, QLD 4% Social Infrastructure Hospitality 14% 23% Hospitalit… Blue-chip tenants Income growth driven b
Slide 7: FY23 half year highlights
Overview and FY23 half year highlights FY23 half year highlights1 Financial Portfolio Capital performance performance management Operating EPS of 11.8 year WALE 74% of drawn debt hedged 14.0 cents per security long term income security with a weighted average hedge maturity of 2.6 years on track to
Slide 8: ESG Leadership
Overview and FY23 half year highlights ESG Leadership Achievements in 1H FY23 Focus areas in FY23+ Environment Net Zero Carbon by 2025 100% grid supplied electricity sourced 4.9 Star NABERS Energy Scope 3 emissions Accelerating our commitment from renewable sources2 for Office Portfolio rating Estab
Slide 9: Financial performance
Charter CharterHall HallLong LongWALE WALEREIT 2023 Half Year Results REIT 2 Coles Distribution Centre Perth, WA Financial performance 2021 Full Year Results
Slide 10: FY23 half year results snapshot
Financial performance FY23 half year results snapshot Key metrics 1H FY22 1H FY23 Movement Operating earnings $97.8m $101.2m 3.5% Operating earnings per security 15.31 cents 14.00 cents (8.6%) Distributions per security 15.24 cents 14.00 cents (8.1%) 30 Jun 2022 31 Dec 2022 Movement NTA per security
Slide 11: Earnings summary
Financial performance Earnings summary - 1H FY23 net property income increased by 16.9% A$m 1H FY22 1H FY23 % change driven by like-for-like rental growth of 4.1% with the balance driven by acquisition activity Net property income 137.6 160.9 16.9% - Operating expenses increase attributable to Opera
Slide 12: Balance sheet
Financial performance Balance sheet A$m 30 Jun 2022 31 Dec 2022 - $105 million of property acquisitions transacted during the year Cash 19.0 43.3 - Net property valuation uplift of $65 million Investment properties 3,722.1 3,623.9 - $112 million of property divestments at book value Equity accounted
Slide 13: Capital management
Financial performance Capital management Diversified and well balanced, long term debt maturity profile – A$m 200 100 - Balance sheet gearing of 30.2% is within the 50 target 25 – 35% range 300 100 - Refinanced and extended syndicated debt 100 facility for the bp Australia portfolio by four years 30
Slide 14: Operational update and portfolio overview
3 Operational update and portfolio overview Geoscience Australia Charter CharterHall HallLong RetailWALE REIT REIT Canberra, ACT 2023 Half Year Half Year FY21 Results Results
Slide 15: Transaction activity highlights
Operational update and portfolio overview Transaction activity highlights Strategic portfolio curation and asset recycling into new high quality investments Divestments – 3.0 average WALE Investments – 10.1 average WALE Industrial & logistics Social infrastructure Hospitality $112 million $91 millio
Slide 16: $7.2 billion diversified portfolio of high quality real estate
Operational update and portfolio overview $7.2 billion diversified portfolio of high quality real estate Diversified across geography, real estate sector and tenant industries Key metrics Jun 22 Dec 22 Number of properties 549 550 Property valuation (A$m) 7,127 7,215 Weighted Average Capitalisation
Slide 17: Best in class tenant register
Operational update and portfolio overview Best in class tenant register Strong and stable tenant base of government, ASX-listed and multinational companies Major tenants1 19% 4% 19% 3% 13% 3% 10% 3% 5% 2% 4% 1% 4% 1% 1. Weighted by net passing income as at 31 December 2022 Charter Hall Long WALE REI
Slide 18: Focus on key defensive tenant industries
Operational update and portfolio overview Focus on key defensive tenant industries1 Defensive and resilient to economic shocks Government (19%) Pubs and bottle shops (19%) Telecommunications (13%) Fuel & convenience (11%) Australian Tax Office, Adelaide Villa Noosa Hotel, Noosaville 242 Exhibition S
Slide 19: Long portfolio WALE
Operational update and portfolio overview Long portfolio WALE1 Long term income security 11.8 years 15.9% 11.9% 9.7% 8.6% 8.1% 6.7% 5.0% 4.4% 3.8% 3.7% 3.9% 3.1% 3.4% 3.4% 3.0% 1.8% 1.3% 0.9% 0.2% 0.5% 0.3% 0.5% FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY4
Slide 20: FY23 guidance
Charter CharterHall 2023 HallLong Half Year RetailWALE Half Year REIT REIT FY21 Results Results 4 Arnott’s Huntingwood Sydney, NSW FY23 guidance
Slide 21: FY23 guidance
FY23 guidance FY23 guidance1 Based on information currently available and barring any unforeseen events, CLW reaffirms its FY23 Operating EPS guidance of 28.0 cents and DPS guidance of 28.0 cents Guidance of FY23 Operating EPS and DPS of 28.0 cents reflecting a distribution yield2 of 6.1% New Bright
Slide 22: Additional information
Charter CharterHall HallLong LongWALE WALEREIT 2023 Half Year Results REIT 5 Ampol Travel Centre Brisbane, QLD Additional information 2021 Full Year Results
Slide 23: NTA reconciliation
Additional information NTA reconciliation NTA per security bridge ($ / security) - As at 31 December 2022, the REIT had an NTA per security of $6.23 reflecting an increase of 1.0% from $6.17 as at 30 June 2022 $0.09 - Movement primarily driven by a net1 property $6.17 $0.03 $6.23 valuation uplift of
Slide 24: 1H FY23 portfolio revaluations
Additional information 1H FY23 portfolio revaluations Long WALE Industrial & Social- Agri- - 1H FY23 property valuations resulted in a net Portfolio valuation (A$m) retail logistics Office infra logistics Total valuation uplift of $65 million over prior book values Prior book value1 3,002 1,441 1,36
Slide 25: Debt facility summary
Additional information Debt facility summary Debt summary (A$m) – 31 Dec 2022 Limit Drawn1 Maturity Gearing ICR (covenant) (covenant) Balance sheet debt A$MTN (7, 8.5 and 10 year tranches) 700.0 700.0 Mar-28 to Mar-31 - $3.1 billion of look through debt facilities across Domestic bank bilateral debt
Slide 26: Geographic and sector diversification
Additional information Geographic and sector diversification1 Geographic diversification Real estate sector diversification Northern Territory New Zealand & Tasmania 20.8 year 3% WALE Australian Capital 2% Territory 5% 12.5 year Agri-logistics WALE 4% 8.8 year WALE Social Infrastructure Hospitality
Slide 27: Property investment portfolio: Long WALE retail
Additional information Property investment portfolio Long WALE retail – $3.1 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Hospitality ALE portfolio (78 properties) Australia wide 50.0% 941.7 4.08% 6.0 100% 228,707 CPI5 LWIP portfolio (64 pro
Slide 28: Property investment portfolio: Industrial & logistics
Additional information Property investment portfolio Industrial & logistics – $1.5 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Arnott’s, Huntingwood NSW 50.0% 315.0 3.25% 29.0 100% 52,908 CPI + 0.5% National Archives, Chester Hill NSW 100.0
Slide 29: Property investment portfolio: Office
Additional information Property investment portfolio Office – $1.3 billion1 REIT Valuation1 WALE3 NLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) The Glasshouse, Macquarie Park NSW 50.0% 199.5 4.50% 9.1 100% 35,114 3.4% Westpac Building, Kogarah NSW 50.1% 133.8 4.75% 11.6 10
Slide 30: Property investment portfolio: Social infrastructure
Additional information Property investment portfolio Social infrastructure – $1.0 billion1 REIT Valuation1 WALE3 Area4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Telco Exchanges portfolio (36 properties) Australia-wide 24.5% 465.7 3.65% 17.6 100% 347,270 CPI + 0.5% Pitt Stre
Slide 31: Property investment portfolio: Agri-logistics
Additional information Property investment portfolio Agri-logistics – $294 million1 REIT Valuation1 WALE3 Building area Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Ingham’s portfolio (27 properties) Australia-wide 100.0% 293.7 5.64% 20.8 100% 303,687 2.5%4 Total / weighted av
Slide 32: Glossary
Additional information Glossary ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash CAGR Compound annual growth rate CLW or the REIT Charter Hall Long WALE REIT DPS Dis
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 Presentation authorised by the Board charterhall.com.au/clw IMPORTANT NOTICE & DISCLAIMER This presentation ("Presentation") has been prepared by and is the s
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