Charter Hall Group · ASX:CHC
Charter Hall — Shareholder Meeting (February 2016)
48 slides from Charter Hall's shareholder meeting presentation, Feb 11, 2016
Slide 1: Chair's address - 2015 Annual General Meeting
Charter Hall Group Annual General Meeting 2015 - Chair’s address Charter Hall Group 2015 Annual General Meeting Good afternoon. On behalf of the Board of Directors it is my pleasure to welcome you all to the 2015 Annual General Meeting of Charter Hall Group. My name is David Clarke and I am the Chai
Slide 2: Chair's Address: vision, purpose and goal
• Philip Garling, Non-Executive Director, who is a member of the RHRC • Peter Kahan, Non-Executive Director, and a member of the RHRC and of the Nominations Committee • Colin McGowan, Non-Executive Director who Chairs the Investment Committee and is a member of the RHRC • Finally, I introduce our Jo
Slide 3: Solid earnings and distribution growth
Solid earnings and distribution growth In FY15, Charter Hall reported operating earnings of $98.8 million, up 21.7% on the prior year, with an 11.8% compound annual growth rate in OEPS over the past five years. The Board was also pleased to make a full year distribution of 24.2 cents per security, u
Slide 4: Committed to Corporate Governance
Committed to Corporate Governance Charter Hall has committed itself to maintaining the highest possible standards of corporate governance as the manager of substantial capital on behalf of others, by maintaining a material co-investment alongside our investors. Charter Hall has always understood the
Slide 5: Charter Hall Group 2015 Annual General Meeting
Charter Hall Group 2015 Annual General Meeting 11 November 2015
Slide 6: Agenda
Agenda 1 Board of Directors 2 Chair’s Address: David Clarke 3 Joint Managing Directors’ Address: David Harrison and David Southon 4 Formal Business 5 Questions David Clarke David Harrison David Southon Chair Joint Managing Director Joint Managing Director CHARTER HALL GROUP | 2015 Annual General Mee
Slide 7: Board of Directors
Board of Directors CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 8: Board of Directors
Board of Directors David Clarke Chair Anne Brennan David Deverall Philip Garling Peter Kahan Colin McGowan Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director David Harrison David Southon Joint Managing Director Joint Managing Director C
Slide 9: Chair's Address
Chair’s Address CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 10: Our Vision
Our Vision CHARTER HALL GROUP | 2015 Annual General Meeting 6
Slide 11: Total Securityholder Returns
Total Securityholder Returns • Total securityholder return for 1 year to 30 September 2015: 10.4% • Outperformance over 3, 5 and 10 years to 30 September 2015 Total performance over 3, 5 and 10 years (% pa) to 30 September 20151 25% 22.4% Charter Hall Group securityholders 20.2% S&P/ASX 200 Property
Slide 12: Solid Earnings and Distribution Growth
Solid Earnings and Distribution Growth Increase in operating earnings per security (OEPS) to 27.5cps, up 8.7% • Statutory profit after tax of $117.9m, up 43.6% • Operating earnings of $98.8m, up 21.7% • Distribution per security of 24.2cps, up 8.5% Operating earnings per security growth1 Distributio
Slide 13: Investing in our Business and our People
Investing in our Business and our People • New headquarters at No.1 Martin Place, Sydney • Activity Based Working model designed to support a workforce that is empowered to work anywhere, anytime with a focus on the business results • Regional office refurbishments currently being rolled out • Impro
Slide 14: Corporate Responsibility and Sustainability
Corporate Responsibility and Sustainability To provide innovative and To drive sustainable returns To be the place for people To be a trusted and valued sustainable products for for our Investors and people in property partner to all of our our investors, customers stakeholders and the community CHA
Slide 15: Joint Managing Directors' Address
Joint Managing Directors’ Address CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 16: Consistent Delivery on Strategy
Consistent Delivery on Strategy Access1 Deploy1 Manage2 Invest2 Access to Creating value Property funds Investing multiple equity through attractive management, asset alongside our sources investment management, leasing capital partners opportunities and development services $1,022m of property 12 m
Slide 17: FY15 Results Summary and Operating Earnings Composition
Operating Earnings Composition FY15 Results Summary Property Investment Earnings Drivers 1,000 9% Operating earnings of $98.8m1, up 21.7% pcp from $81.2m 8% 800 • 59% of operating earnings from Property Investment 7% Co-investment Yield (%) PI Portfolio ($m) 6% • Property Investment earnings growth
Slide 18: Property Investments Portfolio
Property Investments Portfolio Property Investment Charter Hall Group continues to focus on reweighting its Property Investments towards a more diversified portfolio • Property Investment portfolio has increased its exposure to long WALE industrial, hospitality and retail assets • Diversification of
Slide 19: Well Diversified Funds Management Portfolio
Well Diversified Funds Management Portfolio Portfolio No. of No. of Gross WALE3 Occupancy WACR4 Size ($b) Properties Tenants Income ($m) (years) (%) (%) Sep 151 14.8 293 2,431 1,219 7.8 97.0 7.07 Jun 15 13.6 276 2,289 1,120 7.9 97.8 7.10 Jun 14 11.5 209 2,289 1,000 7.3 96.8 7.68 Diversification by e
Slide 20: Australian FUM Growth Drives Earnings
Australian FUM Growth Drives Earnings Property Funds Management FUM growth driven by activity in the Industrial, Retail and Hospitality sectors • Australian property FUM has increased $3.3b to $14.8b in the 15 months to 30 September 2015 • Weighted average cap rate on $14.8bn of FUM stands at 7.1% T
Slide 21: Property Transactions
Property Transactions Property Funds Management • During FY15, 89 properties were acquired for a total $1.9bn, and 19 properties sold for $0.7bn • During the 3 months to 30 September 2015, an additional $1.1bn of transactions were completed (outlined in table below) • In addition to the activity dur
Slide 22: Secured Inflows Across the Funds Platform
Secured Inflows Across the Funds Platform Property Funds Management • Diversified equity sources • Secured $1.7b in gross equity flows3 ($1.3b net) during FY15 across all equity sources • Secured $538m in gross equity flows3 ($416m net) during the September quarter across all equity sources FY14 FY1
Slide 23: Office Market
Office Market Tenant demand recovering with positive drivers, but material upcoming supply in 2016 • Tenant demand has recovered, led by the strongest combined Relative CBD Supply Under Construction net absorption performance in Sydney and Melbourne since 2006. Job advertisement trends continue to p
Slide 24: Retail Markets
Retail Markets Long term performance of supermarkets and hardware sector has driven outperformance • Improved employment growth and the lower AUD have driven Retail Trade Growth and Key Drivers by State a recovery in the discretionary sectors of retail trade, with 4.4% turnover growth to September.
Slide 25: Industrial Market
Industrial Market Top performing sector with attractive lease structures, demand recovering in 2015 • Industrial was the top performing sector in FY-15 according to FY-15 Total Returns by Property Sector IPD, with attractive risk-adjusted returns fuelling investor appetite for the sector • Following
Slide 26: Upgrade to FY16 earnings per security guidance
Upgrade to FY16 earnings per security guidance Outlook and Guidance • With Australian economic and property fundamentals remaining positive, we expect Charter Hall's strategy of co-investing with external capital, growing FUM via selective acquisition and development activity, while enhancing the po
Slide 27: Formal Business
Formal Business CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 28: Formal Business
Formal Business • If there are Securityholders who are eligible to vote who have not received their yellow voting card, please see a representative from Link Market Services at the registration desk • Securityholders holding a red card are not eligible to vote but can speak at the meeting • Visitors
Slide 29: Item 1
Item 1 • Item 1 – Annual Report – To receive and consider the Annual Report, consisting of the Financial Report, Directors’ Report and Auditors Report for the financial year ended 30 June 2015. • Note: There is no requirement for Securityholders to approve these reports CHARTER HALL GROUP | 2015 Ann
Slide 30: Resolutions
Resolutions Resolutions: Resolutions 2.1, 2.2, and 3 are proposed as ordinary resolutions of Charter Hall Limited (CHL) and will be approved if passed by at least 50% of votes cast by securityholders entitled to vote on the resolution. Resolutions 4.1, 4.2, 5.1, and 5.2 are proposed as ordinary reso
Slide 31: Resolution 2.1
Resolution 2.1 To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr David Deverall, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL” Resolution 2.1 is an ordinary resolution of CHL, and will be approved if pas
Slide 32: Resolution 2.1 - Proxies
Resolution 2.1 – Proxies FOR: 98.38% OPEN: 0.04% AGAINST: 1.58% ABSTAIN: 776,581 CHARTER HALL GROUP | 2015 Annual General Meeting 28
Slide 33: Resolution 2.2
Resolution 2.2 To consider, and if thought fit, pass the following ordinary resolution of CHL: “That Mr Philip Garling, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL” Resolution 2.2 is an ordinary resolution of CHL, and will be approved if pas
Slide 34: Resolution 2.2 - Proxies
Resolution 2.2 – Proxies FOR: 99.78% OPEN: 0.04% AGAINST: 0.18% ABSTAIN: 781,820 CHARTER HALL GROUP | 2015 Annual General Meeting 30
Slide 35: Resolution 3
Resolution 3 To consider, and if thought fit, pass the following ordinary resolution of CHL: "That the Remuneration Report included in the Annual Report for the year ended 30 June 2015 be adopted.“ Resolution 3 is an ordinary resolution of CHL, and will be approved if passed by at least 50% of the v
Slide 36: Resolution 3 - Proxies
Resolution 3 – Proxies FOR: 99.42% OPEN: 0.04% AGAINST: 0.54% ABSTAIN: 781,083 CHARTER HALL GROUP | 2015 Annual General Meeting 32
Slide 37: Resolution 4.1
Resolution 4.1 To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 73,515 service rights (being a deferred proportion of
Slide 38: Resolution 4.1 - Proxies
Resolution 4.1 – Proxies FOR: 97.42% OPEN: 0.04% AGAINST: 2.54% ABSTAIN: 780,567 CHARTER HALL GROUP | 2015 Annual General Meeting 34
Slide 39: Resolution 4.2
Resolution 4.2 To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 86,840 service rights to Mr David Harrison (being a de
Slide 40: Resolution 4.2 - Proxies
Resolution 4.2 – Proxies FOR: 97.42% OPEN: 0.04% AGAINST: 2.54% ABSTAIN: 781,017 CHARTER HALL GROUP | 2015 Annual General Meeting 36
Slide 41: Resolution 5.1
Resolution 5.1 To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 214,492 performance rights to Mr David Southon as desc
Slide 42: Resolution 5.1 - Proxies
Resolution 5.1 – Proxies FOR: 99.62% OPEN: 0.04% AGAINST: 0.34% ABSTAIN: 781,017 CHARTER HALL GROUP | 2015 Annual General Meeting 38
Slide 43: Resolution 5.2
Resolution 5.2 To consider, and if thought fit, pass the following ordinary resolution of CHL and CHPT: "That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular Listing Rule 10.14) for the issue of 250,965 performance rights to Mr David Harrison as des
Slide 44: Resolution 5.2 - Proxies
Resolution 5.2 – Proxies FOR: 99.62% OPEN: 0.04% AGAINST: 0.34% ABSTAIN: 781,017 CHARTER HALL GROUP | 2015 Annual General Meeting 40
Slide 45: Questions
Questions CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 46: Close of Meeting
Close of Meeting
Slide 47: Disclaimer
Disclaimer This presentation has been prepared by Charter Hall Group (being Charter Hall Limited (ABN 57 113 531 150) and Charter Hall Funds Management Limited (ABN 31 082 991 786) (AFSL 262861) as the responsible entity for Charter Hall Property Trust (ARSN 113 339 147)) (the “Group”). It is a pres
Slide 48: Sydney Head Office
Sydney Head Office Level 20, No.1 Martin Place, Sydney, NSW, 2000 T: +61 2 8651 9000
Charter Hall Group — Shareholder Meeting (February 2016) on 6ix