Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — Merger or Acquisition (May 2021)
40 slides from Charter Hall Long Wale Reit's merger presentation, May 18, 2021
Slide 1: Acquisitions and equity raising
For personal use only Charter Hall Long WALE REIT Acquisitions and equity raising 18 May 2021 Not for distribution or release in the United States Charter Hall Long WALE REIT
Slide 2: Important notice
Acquisitions and equity raising Important notice 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”)
Slide 3: Important notice (cont.)
Acquisitions and equity raising Important notice (cont.) For personal use only Forward-looking statements This Presentation contains certain “forward-looking statements”, including expectations about the success of the Equity Raising. The words “forecast”, “estimate”, “likely”, “anticipate”, “believ
Slide 4: Agenda
For personal use only Agenda 1. Transaction overview 5 Appendix 2. Acquisitions overview 7 A. Pro forma balance sheet 21 3. CLW portfolio impact 12 B. Summary of key risks 23 Acquisitions and 4. Sources and uses of funds 17 C. International Offer Restrictions 31 equity raising 5. Equity raising 18 D
Slide 5: Transaction overview
Acquisitions and equity raising Transaction overview For personal use only ‒ Charter Hall Long WALE REIT ("CLW“ or “the REIT”) is pleased to announce that it has entered into agreements to acquire 50% interests in: $415.4m 5.2% ‒ the Services Australia Building in Tuggeranong, ACT for $153.0 million
Slide 6: Strategic rationale
Acquisitions and equity raising Strategic rationale Modern properties that increase CLW’s exposure to Government tenants from 16% to 21%1 For personal use only 1 2 Long leases to high quality tenants Improved portfolio growth Acquisition Portfolio has secure and stable tenants including Commonweal
Slide 7: Acquisition overview – Services Australia Building, Tuggeranong, ACT
Acquisitions and equity raising Acquisition overview – Services Australia Building, Tuggeranong, ACT Prime office asset underpinned by long term government lease For personal use only Property details Property overview Address 25 Cowlishaw Street, Tuggeranong, ACT ‒ 6-storey campus style A-grade off
Slide 8: Acquisition overview – ATO Building, Box Hill, VIC
Acquisitions and equity raising Acquisition overview – ATO Building, Box Hill, VIC A-Grade metropolitan office tower leased to the Commonwealth Government on a long lease For personal use only Property details Property overview Address 913 Whitehorse Road, Box Hill, VIC ‒ Prominent 21-storey A-grade
Slide 9: Acquisition overview – Red Cross Building, Alexandria, NSW
Acquisitions and equity raising Acquisition overview – Red Cross Building, Alexandria, NSW Life sciences building purpose built for the Australian Red Cross For personal use only Property details Property overview Address 17 O'Riordan Street, Alexandria NSW ‒ 4-storey, 12,702m2 NLA Life Sciences bui
Slide 10: Acquisition overview – ATO Building, Albury, NSW
Acquisitions and equity raising Acquisition overview – ATO Building, Albury, NSW A-grade office tower located in the heart of the Albury CBD and leased to the Commonwealth Government on a long lease For personal use only Property details Property overview Address 520 Smollett St, Albury NSW ‒ 7-stor
Slide 11: Acquisition overview – Redbank Plains Travel Centre, QLD
Acquisitions and equity raising Acquisition overview – Redbank Plains Travel Centre, QLD Strategically located convenience retail centre, underpinned by long leases to majority national tenants For personal use only Property details Property overview Address 588 Redbank Plains Road, QLD ‒ Constructe
Slide 12: CLW portfolio impact
Acquisitions and equity raising CLW portfolio impact Increases CLW’s WARR to 2.3% and proportion of fixed rent review to 61% For personal use only Pre-Acquisition1 Acquisition Portfolio Post-Acquisition Number of properties 459 5 464 Property valuation $4,482m $415m $4,897m Occupancy 97.5% 100.0% 97
Slide 13: Tenant diversification
Acquisitions and equity raising Tenant diversification Increases CLW’s exposure to Government tenants from 16% to 21% post Acquisitions For personal use only Major tenants1 21% 5% 16% 4% 12% 2% 11% 2% 6% 2% 5% 2% 5% 1% 1. Weighted by net passing income (REIT ownership interest) Charter Hall Long WAL
Slide 14: Tenant diversification (cont.)
Acquisitions and equity raising Tenant diversification (cont.) High proportion of investment grade tenants For personal use only Independent credit rating - key tenants1 AAA 11% Not rated 23% AAA 14% Not rated 26% AA+ 6% BBB AA- 13% 2% BBB+ 10% BBB 11% A- BBB+ 33% 7% 1. Weighted by net passing incom
Slide 15: Tenant resilience
Acquisitions and equity raising Tenant resilience Resilient and defensive sector exposures For personal use only Portfolio income exposure to key defensive tenant industries1,2 Government (21%) Telecommunications (16%) Grocery & distribution (13%) Fuel & convenience (12%) The Glasshouse, Macquarie P
Slide 16: Lease expiry profile
Acquisitions and equity raising Lease expiry profile Long Portfolio WALE of 13.8 years post Acquisitions For personal use only 13.8 years post Acquisitions 17.9% 11.8% 9.5% 8.6% 7.9% 6.6% 6.1% 5.1% 4.2% 4.2% 3.5% 3.3% 3.5% 3.1% 2.3% 0.5% 0.7% 0.4% 0.2% 0.2% 0.0% 0.1% Vacant FY22 FY23 FY24 FY25 FY26
Slide 17: Sources and uses of funds
Acquisitions and equity raising Sources and uses of funds Acquisitions partially funded by $250 million accelerated non-renounceable entitlement offer For personal use only ‒ The REIT will undertake a fully underwritten accelerated non-renounceable entitlement offer of approximately $250 million to
Slide 18: Equity raising overview
Acquisitions and equity raising Equity raising overview Fully underwritten accelerated non-renounceable entitlement offer For personal use only ‒ A fully underwritten 1-for-10.68 accelerated non-renounceable entitlement offer of approximately $250 million to partially fund the Acquisitions and assoc
Slide 19: Timetable
Acquisitions and equity raising Timetable For personal use only Event Date (2021) Trading halt and announcement of the Acquisitions and Entitlement Offer Tuesday, 18 May Institutional Entitlement Offer Tuesday, 18 May Announcement of results of Institutional Entitlement Offer Wednesday, 19 May Tradi
Slide 20: Conclusion
Acquisitions and equity raising Conclusion For personal use only Acquisition of modern, long WALE properties which increases CLW’s exposure to government tenants from 16% to 21% Attractive Acquisition Portfolio passing yield of 5.2% Long term stable and secure income stream with Acquisition Po
Slide 21: Appendix A
Services Australia Building, Tuggeranong, ACT Appendix A For personal use only Charter Hall Long WALE REIT
Slide 22: Pro forma balance sheet
Appendix A Pro forma balance sheet For personal use only Post balance sheet date Dec-20 pro forma Acquisitions and Dec-20 pro forma (A$m) Dec-20 adjustments1 (pre-transaction) Entitlement Offer (post-transaction) Cash 16.6 16.6 16.6 Investment properties 2,219.7 287.7 2,507.4 415.4 2,922.8 Equity ac
Slide 23: Appendix B
Appendix B For personal use only Charter Hall Long WALE REIT ATO Building, Albury, NSW
Slide 24: Summary of key risks
Appendix B Summary of key risks For personal use only This section describes some of the potential key risks associated with the Responsible Entity and the Long WALE REIT However, the extent of the impact on the REIT’s business, results of operations, financial condition, liquidity and cash and thei
Slide 25: Summary of key risks (cont.)
Appendix B Summary of key risks (cont.) For personal use only Aluminium composite panelling ("ACP") has been identified within the façade of certain of the properties the In order to minimise the risks associated with the development and operation of its joint co-ownership subject of the Acquisition
Slide 26: Summary of key risks (cont.)
Appendix B Summary of key risks (cont.) For personal use only These factors may change for a variety of reasons including those set out above in respect of these project prior to commencing development activities. particular risks. A reduction in the value of any property may adversely affect the va
Slide 27: Summary of key risks (cont.)
Appendix B Summary of key risks (cont.) For personal use only This may create a conflict of interest. Related party transactions also carry a risk that they could be default occurs, the lender may require immediate repayment of a debt facility. The REIT may need to assessed and monitored less rigoro
Slide 28: Summary of key risks (cont.)
Appendix B Summary of key risks (cont.) For personal use only Insolvency Occupational health and safety In the event of any liquidation or winding up of the REIT, the claims of the REIT's creditors, including any There is a risk that liability arising from occupational health and safety matters at a
Slide 29: Summary of key risks (cont.)
Appendix B Summary of key risks (cont.) For personal use only Accounting standards GENERAL MARKET RISKS The Australian Accounting Standards to which the REIT adheres are set by the Australian Accounting Standards Board (AASB) and are consequently out of the control of the REIT and the Directors. Cha
Slide 30: Summary of key risks (cont.)
Appendix B Summary of key risks (cont.) For personal use only Consequently the trading price of securities may be influenced by factors non-specific to the REIT and out of the REIT's ability to control. No assurances can be made that the performance of the securities will not be adversely affected b
Slide 31: Appendix C
Appendix C For personal use only Charter Hall Long WALE REIT Red Cross Building, Alexandria, NSW
Slide 32: International Offer Restrictions
Appendix C International Offer Restrictions For personal use only This document does not constitute an offer of new stapled securities ("New Securities") of CLW in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Securitie
Slide 33: International Offer Restrictions (cont.)
Appendix C International Offer Restrictions (cont.) For personal use only Switzerland The New Securities may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. Neither this document n
Slide 34: Appendix D
Redbank Plains Travel Centre, QLD Appendix D For personal use only Charter Hall Long WALE REIT
Slide 35: Underwriting arrangement
Appendix D Underwriting arrangement For personal use only Citigroup Global Markets Australia Pty Limited and Morgan Stanley Australia Securities Limited will be acting as joint lead managers, bookrunners and underwriters of the Entitlement Offer (Global Underwriters). The Responsible Entity has ente
Slide 36: Underwriting arrangement (cont.)
Appendix D Underwriting arrangement (cont.) For personal use only • a contravention by CLW or a CLW group member of the Corporations Act, any of their respective constitutions, the ASX Listing Rules or any other applicable law; • CLW fails to perform or observe any of its obligations under the Under
Slide 37: Appendix E
Appendix E For personal use only Charter Hall Long WALE REIT ATO Building, Box Hill, VIC
Slide 38: Glossary
Appendix E 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 CPS Cents per security DPS Dis
Slide 39: Contact information
Appendix E Contact information For personal use only Avi Anger Scott Martin Darryl Chua Philip Cheetham Fund Manager Head of Finance Deputy Fund Manager Head of Listed Investor Relations Charter Hall Long WALE REIT Charter Hall Long WALE REIT Charter Hall Long WALE REIT Charter Hall Group Charter Ha
Slide 40: For personal use only
For personal use only Sydney Head Office Melbourne Brisbane Perth Adelaide Level 20, No.1 Martin Place Level 23, 130 Lonsdale Street Level 3, The Annex Level 5, St Georges Square Level 2, 80 Pirie Street Sydney NSW 2000 Melbourne VIC 3000 275 George Street 225 St Georges Terrace Adelaide SA 5000 Bri
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