Charter Hall Group · ASX:CHC
Charter Hall — 2016 Macquarie Australia Conference
20 slides from Charter Hall's conference presentation, May 4, 2016
Slide 1: Charter Hall Group 2016 Macquarie Australia Conference
For personal use only Not for distribution in the United States or to U.S persons Charter Hall Group 2016 Macquarie Australia Conference Artist’s Impression 4 May 2016 WSU Parramatta
Slide 2: Agenda
Agenda For personal use only 1 Group Overview 2 Property Market Drivers 3 Sector Overview 4 Growth, FUM and Capital Markets David Harrison Managing Director & Group CEO Charter Hall Group | 2016 Macquarie Australia Conference 2
Slide 3: Group Overview
Charter Hall Group For personal use only Group Overview1 Property Funds Management Platform $16.4b FUM • Investment management FUM $16.4b • Asset management • Transaction services No. of properties 295 • Property management • Capital management Gross income $1.3b • Development management • Technical
Slide 4: Operating Earnings Composition
Operating Earnings Composition For personal use only 1H FY16 Results Summary Property Investment Earnings Drivers Operating earnings of $61.2m1, up 26.3% pcp from $48.4m 1,200 8% • 59% of operating earnings from Property Investment Property Investment portfolio ($m) 7% 1,000 Co-investment Yield (%)
Slide 5: Consistent Delivery on Strategy
Consistent Delivery on Strategy For personal use only Results Summary Access Deploy Manage Invest Access to Creating value Property funds Investing through attractive management, asset multiple equity investment management, leasing alongside our sources capital partners opportunities and development
Slide 6: Growth in Property Investment Earnings
Growth in Property Investment Earnings For personal use only Property Investment • Charter Hall Group’s balance sheet investments grew to $1,121m in the 9 months to 31 March 2016 • Portfolio WALE1 remained stable at 8.8 years and WACR reduced 45bps during FY16 to 6.55% % of CHC property investment %
Slide 7: Well Diversified Funds Management Portfolio
Well Diversified Funds Management Portfolio For personal use only Portfolio Portfolio No. of No. of Gross WALE2 Occupancy WACR3 Value ($b) Size (m sqm) Properties Tenants Income ($m) (years) (%) (%) Mar 16 16.4 4.8 295 2,497 1,285 7.9 98.4 6.62 Dec 15 15.9 4.7 294 2,440 1,267 7.9 98.1 6.66 Jun 15 13
Slide 8: Inflows Across the Funds Platform
Inflows Across the Funds Platform For personal use only Property Funds Management • Diversified equity sources, momentum continues • Secured $1,029m in gross equity flows3 ($811m net) during the 9 months to 31 March 2016 across all equity sources FY14 FY15 YTD (9 months) ($m) ($m) ($m) Wholesale Poo
Slide 9: Property Transactions
Property Transactions For personal use only Property Funds Management • During the 9 months to 31 March 2016, $2.6bn of transactions were completed including $2.1bn of acquisitions and $0.5bn of divestments Transactions closed during the nine months to March 2016 Office Industrial Retail Hospitality
Slide 10: Property Investment Portfolio Net Returns
Property Investment Portfolio Net Returns For personal use only Property Investment • CHC’s current Property Investment portfolio’s Internal Rate of Return (IRR) over the five years to 31 December 2015 is 16.6% per annum, outperforming the MSCI/IPD Unlisted Wholesale Property Fund Index (NAV post fe
Slide 11: Direct Funds Net Returns
Direct Funds Net Returns For personal use only Property Investment • Over calendar year 2015 Charter Hall Direct managed five of the top ten funds ranked by performance in the PCA/IPD Australian Unlisted Retail Property Fund Index 30% 26.5% 25% 24.2% 23.4% 21.3% 20% 18.6% 18.0% 16.2% 14.5% 15% 13.3%
Slide 12: Australian FUM growth
Australian FUM growth For personal use only Property Funds Management FUM growth driven by activity in the Industrial sector and valuation uplift across all sectors • Australian property FUM has increased $2.8b, or 21% during the 9 months to 31 March 2016 to $16.4b • 15.4% CAGR1 in domestic FUM sinc
Slide 13: Attractive Australian Outlook
Attractive Australian Outlook For personal use only IMF Population Growth Projections 2016-20 IMF Economic Growth Forecasts Greater Capital City – 5yr Employment Growth Projections Interest Rates by Country Sources: International Monetary Fund (WEO Apr-16), Department of Employment, RBA, Charter Hal
Slide 14: Volatility Driving Property Allocations
Volatility Driving Property Allocations For personal use only Risk adjusted returns increasingly compelling • Direct property is well placed in the current cycle, providing a return above fixed interest, without the volatility seen in equities • This risk-adjusted outperformance has increased in rec
Slide 15: Sector Drivers
Sector Drivers For personal use only Office Sector Retail Sector Industrial Sector (Net Absorption by CBD) (2015 Total Return by Type) (Supply U/C by City) • Tenant demand has broadly moved into • Charter Hall’s key retail exposure of non- • At 15.5% the industrial sector provided the positive acros
Slide 16: Discount Rate Spread
Discount Rate Spread For personal use only • The below chart shows the average spread between discount rates adopted on valuations (IPD / MSCI basket) to the Australian 10yr bond, expresses as a total figure and as a multiple of the bond rate itself • While discount rates have tightened in recent pe
Slide 17: Total Securityholder Returns
Total Securityholder Returns For personal use only 1H FY16 Results Summary Operating earnings per security growth2 • Total securityholder return for 1 year to 31 December 2015: 6.1% cps 16.0 15.0 13.7 14.0 12.4 12.0 10.8 11.3 9.8 Total performance over 3 and 5 years (% pa) to 31 December 20151 10.0
Slide 18: FY16 Outlook and Earnings Guidance
FY16 Outlook and Earnings Guidance For personal use only Outlook and Guidance Given volatility across global equity markets, the stable return characteristics of direct property have become increasingly compelling Charter Hall continues to build its bench strength with the recent appointment of Sean
Slide 19: Contact Us
Contact Us For personal use only David Harrison Paul Altschwager Managing Director & Group CEO Chief Financial Officer Charter Hall Group Charter Hall Group T: +61 2 8651 9142 T: +61 2 8651 9242 david.harrison@charterhall.com.au paul.altschwager@charterhall.com.au Richard Stacker Head of Corporate O
Slide 20: Sydney Head Office
Sydney Head Office Level 20, No.1 Martin Place, Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only
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