Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY25 Earnings Presentation
33 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 7, 2025
Slide 1: 2025 Half Year Results
Charter Hall Long WALE REIT 2025 Half Year Results ASX:CLW Charter Hall Long WALE 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. Overview and FY25 half year highlights 2. Financial perfo
Slide 3: Overview and FY25 half year highlights
1 Overview and FY25 half year highlights Telstra Data Centres & Exchanges National Portfolio Charter Hall Long WALE REIT 2025 Half Year Results 3
Slide 4: Overview and FY25 half year highlights
Overview and FY25 half year highlights Best in class diversified real estate portfolio secured by long term leases to blue-chip tenants Woolworths Distribution Centre David Jones Bunnings Caboolture Melbourne, VIC Sydney, NSW Brisbane, QLD % $5.5 bn 9.7 years 99.8% 3.5% 53% 99% portfolio valuation W
Slide 5: 1H FY25 highlights
Overview and FY25 half year highlights 1H FY25 highlights1 Financial Portfolio Capital performance performance management Operating EPS of Completed asset sales program Completed $50 million security 12.5 cents per security settled remaining $300 million of contracted buy-back in line with FY25 OEPS
Slide 6: Real estate valuation cycle since June 2020
Overview and FY25 half year highlights Real estate valuation cycle since June 2020 CLW like-for-like1 portfolio sector cap rates since June 2020 7.0% On a like-for-like basis1 across CLW’s diversified real 1 estate portfolio, sector cap rates have on average expanded over the past two years by the s
Slide 7: Financial performance
2 Financial performance bp Australia Mosman Sydney, NSW Charter Hall Long WALE REIT 2025 Half Year Results 7
Slide 8: Earnings summary
Financial performance Earnings summary A$m 1H FY24 1H FY25 % change - 1H FY25 like-for-like net property income increased by 3.5% offset by divestment activity Net property income – LFL 141.7 146.7 3.5% - Reduction in operating expenses and finance costs Net property income – transactions 25.6 4.6 d
Slide 9: Balance sheet
Financial performance Balance sheet A$m 30 June 2024 31 December 2024 - During the period, CLW completed $289 million of net property divestments, with sale proceeds Cash 22.7 26.3 utilised for the following: Investments properties 2,773.4 2,434.6 − Completed $50 million on market security Equity ac
Slide 10: Capital management
Financial performance Capital management Diversified and well balanced, long term debt maturity profile – A$m 695 656 - $310 million balance sheet debt refinanced and extended by 2.8 years from FY27 to FY30 510 - Weighted average debt maturity of 4.0 years, with staggered maturities over a six year
Slide 11: Operational update and portfolio overview
3 Operational update and portfolio overview Coles Distribution Centre Perth, WA Charter Hall Long WALE REIT 2025 Half Year Results 11
Slide 12: Transaction activity highlights
Operational update and portfolio overview Transaction activity highlights Completion of asset sales program with portfolio curation through strategic long WALE partnership investments Completed divestments Completed investments Sale price Hospitality Property Tenant Settlement date (A$m) $11.5 milli
Slide 13: Asset management update
Operational update and portfolio overview Asset management update Lease extension and warehouse expansion securing Coles long-term distribution operations in WA Coles Distribution Centre, Perth WA New GLA constructed Perth Airport 11,040 − CLW and its joint venture partners1 have agreed with Coles t
Slide 14: $5.5 billion diversified portfolio of high quality real estate
Operational update and portfolio overview $5.5 billion diversified portfolio of high quality real estate Diversified across geography, real estate sector and tenant industries Key metrics June 2024 December 2024 Number of properties 540 513 Property valuation (A$m) 5,768 5,474 Weighted Average Capit
Slide 15: Best in class tenant register
Operational update and portfolio overview Best in class tenant register Strong and stable tenant base of government, ASX-listed, multinational and national tenants Major tenants1 22% 4% 19% 3% 13% 2% 12% 2% 5% 1% 5% 1% 5% 1% 1. Weighted by net passing income as at 31 December 2024 Charter Hall Long
Slide 16: Focus on key defensive tenant industries
Operational update and portfolio overview Focus on key defensive tenant industries1 Defensive and resilient to economic shocks Convenience retail – hospitality (23%) Government (19%) Data centres & telecommunications (13%) Convenience retail – service stations (12%) Crows Nest Hotel, Sydney The Glas
Slide 17: Long portfolio WALE
Operational update and portfolio overview Long portfolio WALE1 Blue chip covenants providing long term income security 9.7 years 12.7% 12.2% 10.7% 8.6% 7.1% 6.8% 5.8% 4.9% 4.4% 4.4% 4.0% 4.0% 3.0% 2.8% 2.3% 1.5% 1.8% 1.5% 0.5% 0.4% 0.5% -% FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36
Slide 18: ESG leadership
Operational update and portfolio overview ESG leadership Achievements in 1H FY25 Looking forward Net Zero carbon Clean energy NABERS Energy Active partnership with tenants Environment to reduce our Scope 3 emissions Maintained Net Zero Scope 1 and Scope CLW’s portfolio has 8.3MW of installed 5.4 Sta
Slide 19: FY25 guidance
4 FY25 guidance Arnott’s Huntingwood Sydney, NSW Charter Hall Long WALE REIT 2025 Half Year Results 19
Slide 20: FY25 guidance
FY25 guidance FY25 guidance Based on information currently available and barring any unforeseen events, CLW reaffirms its FY25 Operating EPS guidance of 25.0 cents and DPS guidance of 25.0 cents. Bunnings Caboolture Brisbane, QLD Represents a distribution yield1 of Guidance of FY25 Operating EPS and
Slide 21: Additional information
5 Additional information Australian Taxation Office Adelaide, SA Charter Hall Long WALE REIT 2025 Half Year Results 21
Slide 22: Statutory earnings reconciliation
Additional information Statutory earnings reconciliation Reconciliation of operating earnings to statutory earnings A$m 1H FY24 1H FY25 Operating earnings 94.0 89.8 Net fair value movement on investment properties (306.3) (13.7) Net movements on derivative financial instruments (41.8) (22.2) Straigh
Slide 23: CLW and joint venture summary
Additional information CLW and joint venture summary Investment in property joint ventures – operating earnings and balance sheet breakdown 1H FY25 Balance Perth RDC CH DC Kogarah CH BBD Telstra $m LWIP bp Aus CH 242 bp NZ CH LEP CH GSA Total sheet Trust Fund Trust Fund Exchanges Ownership interest
Slide 24: CLW and joint venture summary
Additional information CLW and joint venture summary Investment in property joint ventures – operating earnings and balance sheet breakdown 1H FY24 Balance Perth RDC CH DC Kogarah CH BBD Telstra $m LWIP bp Aus CH 242 bp NZ CH LEP CH GSA Total sheet Trust Fund Trust Fund Exchanges Ownership interest
Slide 25: 1H FY25 portfolio revaluations
Additional information 1H FY25 portfolio revaluations Data centres - 82% of the portfolio has been subject to Long WALE Industrial & social- Agri- Portfolio valuation (A$m) retail & logistics Office infrastructure logistics Total independent valuation over the period, resulting in a net property val
Slide 26: Debt facility summary
Additional information Debt facility summary - $2.5 billion of look through debt facilities across Debt maturity profile – A$m CLW’s head trust and joint venture partnerships 695 - Weighted average debt maturity term of 4.0 years 656 100 - Diversity of lenders with 38% of total look through 70 510 d
Slide 27: Geographic and sector diversification
Additional information Geographic and sector diversification Geographic diversification1 Real estate sector diversification1,2 Northern Territory New Zealand & Tasmania 3% 2% 10.0 year Australian Capital WALE Territory 5% Data centres & social 6.8 year infrastructure WALE 12% South Australia Hospita
Slide 28: Property investment portfolio
Additional information Property investment portfolio Long WALE retail – $2.7 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Hospitality ALE portfolio (80 properties)5 Australia wide 50.0% 819.6 4.9% 4.1 100% 230,799 CPI6 LWIP portfolio (66 pro
Slide 29: Property investment portfolio
Additional information Property investment portfolio Industrial & logistics – $1.2 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Arnott’s, Huntingwood NSW 50.0% 250.0 4.5% 27.0 100% 52,908 CPI + 0.5% National Archives, Chester Hill NSW 100.0%
Slide 30: Property investment portfolio
Additional information Property investment portfolio Office – $0.9 billion1 REIT Valuation1 WALE3 NLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) The Glasshouse, Macquarie Park NSW 50.0% 148.5 6.3% 7.1 100% 35,114 3.4% Westpac Building, Kogarah NSW 50.1% 100.4 7.0% 9.6 100%
Slide 31: Property investment portfolio
Additional information Property investment portfolio Data centres & social infrastructure – $0.6 billion1 REIT Valuation1 WALE3 Area4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Telco Exchanges portfolio (36 properties) Australia wide 15.0% 254.4 4.7% 15.7 100% 347,270 CPI +
Slide 32: Glossary
Additional information Glossary ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash CAGR Compound annual growth rate CLW or the REIT Charter Hall Long WALE REIT DPS Dis
Slide 33: 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/clw IMPORTANT NOTICE & DISCLAIMER This presentation ("Presentation") has been prepared by and is the s
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