Charter Hall Retail Reit · ASX:CQR
Charter Hall Retail Reit — H1 FY2025 Earnings Presentation
36 slides from Charter Hall Retail Reit's earnings presentation, Feb 14, 2025
Slide 1: 2025 Half Year Results
Charter Hall Retail REIT 2025 Half Year Results ASX:CQR Glebe Hill Village, Howrah, Tas Charter Hall Retail REIT 2025 Half Year Results
Slide 2: Agenda
Acknowledgement of Country Charter Hall acknowledges the Traditional Custodians of the lands on which we work and gather. We pay our respects to Elders past and present and recognise their Agenda continued care and contribution to Country. 1. Highlights and Strategy 2. Financial Performance 3. Opera
Slide 3: Highlights and Strategy
1 Highlights and Strategy Regatta Hotel Toowong, Qld (HPI) Charter Hall Retail REIT 2025 Half Year Results 3
Slide 4: Portfolio Highlights
Highlights and Strategy Portfolio Highlights Key metrics 1H FY24 1H FY25 Movement Same property NPI growth Total MAT growth1 Operating earnings $78.6m $73.1m (7.0%) 3.0% 3.4% Operating earnings per unit 13.5 cents 12.6 cents (7.0%) Shopping centre +2.5%, net lease +4.5% Supermarket MAT growth 3.9% D
Slide 5: Acquisition of Hotel Property Investments (ASX:HPI)
Highlights and Strategy Acquisition of Hotel Property Investments (ASX:HPI) CQR and wholesale JV partner Hostplus own 85.4%1 of HPI, with intention to move to 100% Hotel Property Investments Incremental income growth for CQR Strong CPI rent review structure that benefits from fixed collars. Expect
Slide 6: Convenience Retail Strategy
Highlights and Strategy CQR Convenience Retail Strategy Convenience Retail To deliver the highest property income and Shopping Centre Retail Net Lease Retail earnings growth from the convenience retail − Sustainable rents generating high − Income growth driven by inflation linked effective yields re
Slide 7: Delivering on Convenience Strategy
Highlights and Strategy Delivering on Convenience Strategy Acquisition of HPI will drive superior income growth HPI rent review structure CQR’s long term forecast income growth Fixed 27% Shopping Centres1 2.0-3.0% CPI Linked 9% Net Lease Retail CPI 3.6% Lower of 2.5x CPI or 4% HPI 3.6% 3% Lower of 2
Slide 8: Delivering on Strategy
Highlights and Strategy Delivering on Strategy Strategic portfolio curation and asset recycling into accretive higher quality assets Acquisitions Divestments Active Asset Management - Purchased Glebe Hill Village, Hobart in RP1 with - Unconditional exchange on divestment of - Completed NIDO childcar
Slide 9: 4.5 Year Valuation Cycle
Highlights and Strategy 4.5 Year Valuation Cycle CQR 4.5 year like-for-like cap rates and valuations1 - On a like-for-like basis1 weighted average cap rates have expanded by the same amount they 8.00% LFL portfolio $3.5bn valuation compressed from 30 June 2020 to growth 30 June 2022 7.50% +18.1% $3.
Slide 10: Financial Performance
2 Financial Performance Eastgate Bondi Junction, NSW Charter Hall Retail REIT 2025 Half Year Results 10
Slide 11: Earnings and Distributions
Financial Performance Earnings and Distributions Look through basis - Same property portfolio NPI growth of 3.0% $m 1H FY24 1H FY25 % change - Like for like convenience shopping centre retail NPI growth of 2.5% Net property income from shopping centre retail – LFL 82.0 84.1 2.5% - Same property conv
Slide 12: Balance Sheet
Financial Performance Balance Sheet - December 2024 balance sheet reflects HPI Look through basis $m Jun 24 Dec 24 investment on a look through basis1 at CQR’s 31 December 2024 ownership of 28.3% Convenience shopping centre retail investment properties 2,868 2,931 - Convenience shopping centres incr
Slide 13: Property Valuations
Financial Performance Property Valuations Convenience Convenience HPI Total $m shopping net lease portfolio portfolio centre retail retail - 99% of the portfolio was externally revalued at June 2024 portfolio value 2,868 1,134 46 4,048 31 December 2024 Net transactions 13 43 2901 346 - Cap rate move
Slide 14: Capital Management
Financial Performance Capital Management Diversified and well balanced, long-term debt maturity profile2 - Available investment capacity of $271m1 109 96 - Refinanced $655m of debt and increased 57 315 debt facilities by $100m achieving additional tenure and margin reductions 252 - Diversified fundi
Slide 15: Operational Performance
3 Operational Performance BP Kingsway South Melbourne, Vic Charter Hall Retail REIT 2025 Half Year Results 15
Slide 16: Portfolio Summary
Operational Performance Portfolio Summary – Convenience shopping centre retail occupancy remains strong at 98.7% Portfolio snapshot Jun 24 Dec 24 – 3.4% total MAT growth1,2 Convenience shopping centre retail – Portfolio WALE stable over last 5 years at 7.0 years Number of assets 45 45 – 59% of total
Slide 17: Convenience Net Lease Portfolio
Operational Performance Portfolio Value Number of Cap rate WALE Rent Convenience Net Lease Portfolio $’m assets (years) review bp Australia 542 219 4.85% 15.0 CPI – Convenience net lease retail represents 35% of bp New Zealand 169 70 5.05% 16.0 CPI (0.5%-4%) total portfolio by value Ampol2 241 276 5
Slide 18: Portfolio Tenant Customer Composition
Operational Performance Top 10 tenant customer groups1 Portfolio Tenant Customer Composition 14.0% - Major tenants Woolworths, Coles, bp, Wesfarmers2, Ampol, Endeavour, Aldi and Gull 13.3% represent 57.4% of portfolio income - Largest mini-major and specialty tenant 12.1% represent 1.6% and 1.0% of
Slide 19: Supermarket Anchors
Operational Performance Supermarket Anchors – Supermarkets continued to demonstrate resilience with 3.9% MAT growth1 Supermarket performance Jun 24 Dec 24 – 87% of supermarkets paying turnover rent or within 10% MAT growth1 4.3% 3.9% – 11 supermarkets with base rent uplifts in 1H FY25 Supermarkets i
Slide 20: Specialty Tenants
Operational Performance Specialty Tenants Specialty performance Dec 23 Dec 24 – 143 specialty leases completed in the period MAT growth1 2.50% 2.20% Sales productivity (per sqm) $11,077 $11,278 – Leasing spreads over the period were +3.8% Average gross rent (per sqm) $1,267 $1,280 – 44 new leases (+
Slide 21: ESG Leadership
Operational Performance ESG Leadership Achievements in 1H FY25 Looking forward Net Zero in 2025 Clean energy Circular Economy Scope 3 emissions Environment Net Zero from 1 July 2025, achieved 18.0MW of solar installed across 85% of 5% uplift in waste diverted from landfill Increase diversion from la
Slide 22: Outlook and Guidance
4 Outlook and Guidance Bribie Island Bribie Island, Qld Charter Hall Retail REIT 2025 Half Year Results 22
Slide 23: Outlook and Guidance
Outlook and Guidance Outlook and Guidance – Strategy remains consistent and focused on non-discretionary convenience retail, providing resilient income growth – Portfolio curation and active asset management will continue to improve portfolio quality – Positive leasing spreads, high occupancy levels
Slide 24: Annexures
5 Annexures Ampol Seven Hills, NSW Charter Hall Retail REIT 2025 Half Year Results 24
Slide 25: Annexures
Annexures Annexures 1 6 Reconciliation of statutory profit to operating earnings Convenience shopping centre MAT analysis 2 7 Investment in property joint ventures Convenience shopping centre retail portfolio historical performance 3 8 Debt maturities and covenants Glossary 4 Lease expiry profile 5
Slide 26: Reconciliation of statutory earnings to operating earnings
Annexures Annexure 1 Reconciliation of statutory earnings to operating earnings $m 1H FY24 1H FY25 Statutory profit (42.1) 108.6 Investment property revaluation1 91.4 (65.4) Acquisition and disposal related costs 0.2 12.7 Net loss on derivative financial instruments 28.5 14.1 Other (including foreig
Slide 27: Investment in property joint ventures
Annexures Annexure 2 Investment in property joint ventures – operating earnings and balance sheet breakdown 1H FY25 Convenience Convenience shopping bp Ampol Gull LWIP2 HPI Other Net $m CQR RP1 RP2 RP6 Other net lease Total centre portfolios portfolios portfolio portfolio portfolio Lease retail reta
Slide 28: Debt maturities and covenants
Annexures Annexure 3 Debt maturities1 and covenants as at 31 December 2024 Limit Drawn ICR ICR LVR LVR Debt facility (ownership interest) Maturity ($m) ($m) covenant actual covenant actual CQR bank debt facilities 100 Mar-26 95 Nov-26 75 Jul-27 200 Dec-27 75 Dec-27 150 Jul-28 150 Jul-28 130 Oct-28 1
Slide 29: Lease expiry profile
Annexures Annexure 4 Lease expiry profile as at 31 December 2024 Major tenant expiry profile (by income) 60% 54.1% 9.7 years 40% Major tenant WALE 20% 7.0 years 7.6% 5.7% 8.6% 6.0% 7.3% 7.3% Portfolio WALE 0.0% 1.0% 2.4% 0% FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34+ 3.6 years Specialty and m
Slide 30: Property valuations
Annexures Annexure 5 Property valuations as at 31 December 2024 Ownership State Property Location Anchor Tenants interest (%) NSW Bass Hill Plaza Bass Hill Woolworths, Aldi, Kmart 20.0% Bateau Bay Square Bateau Bay Woolworths, Coles, Aldi, Kmart 49.9% Carnes Hill Marketplace Horningsea Park Woolwort
Slide 31: Property valuations continued
Annexures Annexure 5 continued Property valuations as at 31 December 2024 continued State Property Location Anchor Tenants Ownership interest (%) QLD Arana Hills Plaza Arana Hills Coles, Aldi, Kmart 100.0% Atherton Square Atherton Woolworths 100.0% Bay Plaza Hervey Bay Woolworths 100.0% Bribie Islan
Slide 32: Property valuations continued
Annexures Annexure 5 continued Property valuations as at 31 December 2024 continued Ownership interest State Property Location Cap Rate Book Value ($m) (%) bp Australia portfolio Australia 23.3% 4.85% 542 bp New Zealand portfolio New Zealand 24.5% 5.05% 169 Ampol I portfolio Australia 2.5% 4.88% 45
Slide 33: Convenience shopping centre MAT analysis
Annexures Annexure 6 Convenience shopping centre MAT analysis as at 31 December 2024 % of Specialty sales by state MAT % of specialty sales MAT growth1 Sales by category portfolio growth2 sales New South Wales & ACT 65% 1.9% Supermarket 64.4% 3.9% Western Australia 12% 2.0% DDS 11.1% 3.5% Queensland
Slide 34: Convenience shopping centre retail portfolio historical performance
Annexures Annexure 7 Convenience shopping centre retail portfolio historical performance Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 Jun 24 Dec 24 Number of properties 55 51 50 50 51 51 51 49 49 45 45 Occupancy 98.1% 97.3% 97.8% 98.3% 98.4% 98.5% 98.6% 98.6% 98.7% 98.8% 98.7% 4 4
Slide 35: Glossary
Annexures Annexure 8 Glossary 1H FY24 LFL Six months from 1 July 2023 to 31 December 2023 Like for Like 1H FY25 JV Six months from 1 July 2024 to 31 December 2024 Joint venture GLA Gross lettable area (in square metres) MAT Moving annual turnover calculated as a sum of rolling 12-month sales Gross r
Slide 36: 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/cqr IMPORTANT NOTICE & DISCLAIMER This presentation ("Presentation") has been prepared by and is the s
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