Charter Hall Social Infrastructure Reit · ASX:CQE
Charter Hall Social Infrastructure Reit — H1 FY2021 Earnings Presentation
30 slides from Charter Hall Social Infrastructure Reit's earnings presentation, Feb 11, 2021
Slide 1: Half Year Results FY21
Charter Hall Social Infrastructure REIT Half Year Results FY21 11 February 2021 Charter Hall Social Infrastructure REIT – 2021 Half Year Results
Slide 2: Agenda
Travis Butcher Fund Manager Agenda 1 Key Metrics and Strategy 2 Financial Results and Capital Management Scott Martin Head of Finance - 3 Operational Performance Diversified 4 Childcare Industry Overview 5 Outlook 6 Appendices Nathan Chew Deputy Fund Manager Front - CQE Centre, Hawthorn, VIC Left -
Slide 3: Key Metrics and Strategy
Key Metrics and Strategy CQE Centre, Bexley, NSW
Slide 4: Key Metrics
Key Metrics and Strategy Key Metrics Upgraded FY21 distribution guidance from 15.0 to 15.7 cpu Gearing1 Investment Capacity1 EPU / DPU 8.0 / 7.5 c 24.8% $ 130m WALE Gross Assets NTA per Unit 14.0yrs $ 1.4b $ 3.03 ― Increased from 12.7 years at 30 June 2020 ― $25.3 million (2.2% increase) net ― Incre
Slide 5: Our Strategy
Key Metrics and Strategy Our Strategy To provide investors with secure income and capital growth through exposure to social infrastructure property Enhancing income ‒ Improving the quality of tenants and leases within a diversified social infrastructure portfolio sustainability and ‒ Targeting prope
Slide 6: Delivering on Strategy
Key Metrics and Strategy Delivering on Strategy An active six month period improving income quality and resilience Enhancing income Targeting ongoing Portfolio Strategic initiatives delivered sustainably capital growth curation and resilience Two recent social infrastructure acquisitions with high q
Slide 7: Acquisition Overview - Mater Headquarters & Training Facilities, Brisbane
Key Metrics and Strategy Acquisition Overview - Mater Headquarters & Training Facilities, Brisbane Sale and leaseback transaction with Mater for an initial 10 year term Property Details Property Overview Address 14 Stratton Street, Newstead, Brisbane (QLD) Property Type A-grade, 11-storey building w
Slide 8: Acquisition Overview - South Australian Emergency Services Command Centre, Adelaide
Key Metrics and Strategy Acquisition Overview - South Australian Emergency Services Command Centre, Adelaide Purpose-built property to be leased on an initial 15 year term Property Details Property Overview Address 33 Richmond Road, Keswick, Adelaide (SA) Property Type Office building, Warehouse, Ha
Slide 9: Financial Results and Capital Management
Financial Results and Capital Management CQE Centre, Somerton Park, SA
Slide 10: Financial Performance
Financial Results and Capital Management Financial Performance $m HY20 HY21 % change − Operating earnings of $29.1 million, an increase of 14.1% on the previous corresponding period (pcp) Net Property Income 31.8 34.4 8.2% − Net property income increased by $2.6 million or 8.2% on the pcp driven by:
Slide 11: Balance Sheet
Financial Results and Capital Management Balance Sheet $m 30 June 2020 31 December 2020 − NTA of $3.03 representing a 3.8% increase from 30 June 2020 Cash 75.6 25.3 − Strong balance sheet with $1301 million of available liquidity to participate in future Investment Properties 1,195.2 1,269.7 opportu
Slide 12: Capital Management – Debt & Hedging
Financial Results and Capital Management Capital Management – Debt & Hedging Debt & Hedging Summary as at 30 June 2020 31 December 2020 Debt Facilities Limit ($m) 500.0 500.0 Debt Drawn Amount ($m) 286.0 250.0 − Diversified funding sources with no debt maturity until March 2023 Weighted Average Debt
Slide 13: Operational Performance
Operational Performance CQE Centre, Northcote, VIC
Slide 14: Portfolio Summary
Operational Performance Portfolio Summary WALE increased from 12.7 years to 14.0 years June 2020 December 2020 − 59 new leases with average expiry of 20 years (average increase of 12 years) Number of operating properties 371 376 − 2 acquisitions and 5 completed developments with average lease terms
Slide 15: Portfolio Summary
Operational Performance Portfolio Summary 83% weighting to eastern seaboard − Extension of 58 Goodstart lease expiries by average of 12 years to 20 years − Fixed reviews increased from 53.6% to 63.3% in the period to 31 December 2020 − 4 market reviews completed at an average increase of 4.0% − Fore
Slide 16: Childcare Portfolio Summary — Acquisitions & Disposals
Operational Performance Childcare Portfolio Summary — Acquisitions & Disposals Increased weighting to larger assets with high quality tenant covenants − 3 childcare acquisitions totalling $12.6 million leased to ASX listed tenants with Acquisitions Settled Contracted Total strong lease covenants on
Slide 17: Portfolio Summary - Valuations
Operational Performance Portfolio Summary - Valuations Valuation uplift highlights portfolio resilience and strong ongoing demand − 3401 childcare valuations completed in HY21, resulting in a 2.9% overall HY21 Valuations No. Valued Value ($m) Yield (%) Mvmt (%) increase on June 2020 carrying values
Slide 18: Childcare Development Pipeline
Operational Performance Childcare Development Pipeline 9 developments forecast to complete in CY21 Murrumbeena VIC Key development & pipeline metrics Fulham SA HY21 Bardon QLD Deepdene VIC Completed Developments 5 Elwood VIC Valuation upon Completion ($m) 31.6 Narre Warren VIC Average SEIFA Rating 7
Slide 19: Sustainability
Operational Performance Sustainability On-going focus on environmental, social and corporate governance performance Climate resilience Climate risk exposure assessments for childcare centres will inform climate adaptation approach for Progressing with our roadmap to align with TCFD the sector. recom
Slide 20: Childcare Industry Overview
Childcare Industry Overview CQE Centre, Yeronga, QLD
Slide 21: Childcare Industry Overview
Childcare Industry Overview Estimated Government funding to childcare sector7 Childcare Industry 12.0 Key drivers of increasing childcare demand continue 10.0 − Strong recovery in childcare attendances post the COVID-19 pandemic and 8.0 associated restrictions with operator’s occupancy levels return
Slide 22: Outlook
Outlook CQE Centre, Balwyn North, VIC
Slide 23: Outlook
Outlook Outlook Upgraded FY21 distribution guidance from 15.0 to 15.7 cpu − CQE is well positioned in the current economic environment with predictable and growing income, low gearing and $130 million of investment capacity − Recent acquisitions and completion of developments to drive earnings and d
Slide 24: Appendices
Appendices CQE Centre, Camp Hill, QLD
Slide 25: Portfolio Overview
Appendices Portfolio Overview − Majority of leases in the portfolio are triple net with fixed rental increases As at 31 December 2020 No. Value ($m) % of Total Passing Yield (%) Assets − Total land holdings of 98.4 hectares: NSW/ACT 93 286.9 21.1 6.0 QLD 128 378.9 27.9 6.2 − 73% metropolitan locatio
Slide 26: Operating earnings & NTA Contributions
Appendices Operating earnings & NTA Contributions Operating earnings: HY20 to HY21 − Operating earnings of $29.1 million, an increase of 14.1% on the previous 35 corresponding period attributable to 30 − $2.6 million increase in net operating income driven by: 25 − $1.3 million of organic rental gro
Slide 27: Statutory Profit Reconciliation
Appendices Statutory Profit Reconciliation − Key reconciling items between operating earnings and statutory profit are: − Yield compression and rental growth combine to contribute $25.3 million in property revaluations; and − Share of equity accounted non-operating profit relates to valuation uplift
Slide 28: Key Statistics
Appendices Key Statistics Financial & Capital Management Metrics FY15 FY16 FY17 FY18 FY19 FY20 HY21 NTA ($) 1.82 2.14 2.51 2.78 2.96 2.92 3.03 NTA Growth (%) 21.3 17.6 17.3 10.8 6.5 (1.4) 3.8 DPU (c) 12.8 13.4 14.2 15.1 16.0 16.0 7.5 DPU Growth (%) 6.7 4.7 6.0 6.3 6.0 - (10.2) 1 Gearing (%) 29.5 26.
Slide 29: Additional Information
Additional Information Travis Butcher Scott Martin Nathan Chew Lula Liossi Philip Cheetham Fund Manager – Head of Finance – Deputy Fund Investor Relations Head of Listed CQE Diversified Manager – CQE Manager Investor Relations Charter Hall Group Charter Hall Group Charter Hall Group Charter Hall Gro
Slide 30: Important Notice & Disclaimer
charterhall.com.au/cqe IMPORTANT NOTICE & DISCLAIMER Charter Hall Social Infrastructure Limited ACN 111 338 937; AFSL 281544 (“CHSIL”) has issued this presentation in its capacity as the responsible entity of Charter Hall Social Infrastructure REIT ARSN 102 955 939 (“CQE). This presentation has been
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