Charter Hall Retail Reit · ASX:CQR
Charter Hall Retail Reit — Investor Presentation (April 2020)
24 slides from Charter Hall Retail Reit's investor presentation, Apr 27, 2020
Slide 1: Equity Raising Investor Presentation
For personal use only Charter Hall Retail REIT Equity Raising Investor Presentation 27 April 2020 Not for release to US wire services or distribution in the United States Charter Hall Retail REIT
Slide 2: Important Notice
Important Notice This presentation has been prepared by and is the sole responsibility of Charter Hall Retail Management This presentation and the information contained in it is provided for information purposes only and is not an offer or Limited (ABN 46 069 709 468, Australian Financial Services L
Slide 3: Equity raising overview
Equity raising Equity raising overview For personal use only Equity Raising • Charter Hall Retail REIT ("CQR" or "the REIT") will undertake an equity raising comprising – A fully underwritten institutional placement to raise $275 million (“Placement"), and – A non-underwritten Unit Purchase Plan (“U
Slide 4: Impact from COVID-19
Impact from COVID-19 Convenience based retail centres remain resilient For personal use only • All anchor tenants have remained open and trading providing essential Monthly Gross % Monthly Gross Impact from products and services for our local communities Category Income ($m) Income COVID-19 Closures
Slide 5: Investment highlights
Investment highlights Supermarket anchored Strong weighting to convenience-based, non-discretionary retail categories with a focus on everyday needs For personal use only • convenience based portfolio • Major tenants Woolworths, Coles, BP, Wesfarmers and Aldi represent in excess of 51% of rental inc
Slide 6: Supermarket anchored convenience based portfolio
Investment highlights Supermarket anchored convenience based portfolio Major tenants Woolworths, Coles, BP, Wesfarmers and Aldi represent 51% of income For personal use only Top 10 tenant customer groups Supermarkets in turnover1 Supermarket MAT growth2 60% 5.8% Woolworths 17.9% Coles Group 14.8% Su
Slide 7: Long WALE with quality tenants
Investment highlights Long WALE with quality tenants More than half of rental income underpinned by major tenants with a 11.8 year WALE For personal use only 11.8 years 7.4 years 3.2 years Major tenant WALE Portfolio WALE Specialty and mini-major tenant WALE Portfolio and majors WALE Major tenant ex
Slide 8: Prudent capital management
Investment highlights Prudent capital management The Equity Raising strengthens the balance sheet to better withstand the impacts of COVID-19 For personal use only • CQR is well capitalised with no debt maturities until FY22 Debt maturity profile (post-Placement) • Moody’s recently re-affirmed its B
Slide 9: Proven track record of active portfolio management
Investment highlights Proven track record of active portfolio management • CQR owns a portfolio of high quality convenience based retail assets and has demonstrated a track record of active portfolio curation For personal use only • Continually optimising tenancy mix through focusing on everyday nee
Slide 10: Placement and UPP overview
Equity raising Placement and UPP overview • Fully underwritten Placement to raise $275 million, representing approximately 20% of pre-Equity Raising units on issue For personal use only – It is intended that eligible institutional unitholders who bid for up to their ‘pro rata’ share of new units und
Slide 11: Sources and uses of funds
Equity raising Sources and uses of funds For personal use only Sources and uses Uses of Proceeds • The Placement proceeds will be used to pay down $271 Sources of funds $m million of existing debt facilities, providing CQR with $407 Placement 275 million of cash and undrawn debt Total Sources 275 •
Slide 12: Indicative timetable
Equity raising Indicative timetable For personal use only Event Date (2020) Record date for UPP 7:00pm, Friday, 24 April Trading halt and announcement of the Equity Raising Monday, 27 April Placement bookbuild Monday, 27 April Trading of units recommences on the ASX Tuesday, 28 April Settlement of u
Slide 13: For personal use only
Annexures For personal use only Gateway Plaza, Vic Campbellfield Plaza, Vic Charter Hall Retail REIT Salamander Bay Square, NSW
Slide 14: Pro forma balance sheet
Annexure 1 Pro forma balance sheet For personal use only Post balance date Pro forma as at 31-Dec- Pro forma as at 31-Dec- $m Actual as at 31-Dec-19 Placement adjustments1 19 (pre Placement) 19 (post Placement) Cash 11 80 91 91 Investment properties 2,299 2,299 2,299 Investment in JVs 561 78 639 639
Slide 15: Key risks
Annexure 2 Key risks Investors should carefully consider the risks factors described below. Additional risk factors and uncertainties that are not known to the Responsible Entity, Charter Hall Retail Management Limited (CHRML) at the time of this Offer or which are considered immaterial, may in the
Slide 16: Key risks
Annexure 2 Key risks Funding For personal use only The Responsible Entity may fund future refinancing, capital expenditure and acquisitions from either debt or equity markets. CQR's ability to raise funds from either market on favourable terms is dependent on a number of factors including: the gener
Slide 17: Key risks
Annexure 2 Key risks Property liquidity By their nature, investments in real property assets are illiquid investments, and there is a risk that should CQR be required to realise property assets, it may not be able to do so in a short period of time, or may not be able to realise a property asset for
Slide 18: Key risks
Annexure 2 Key risks Insurance For personal use only Insurance coverage is maintained in respect of each property (including insurance for destruction or damage to the property and public risk liability) where that coverage is available on commercial terms. Insurance coverage will include differing
Slide 19: Key risks
Annexure 2 Key risks Changes in laws, regulation and policy Changes in laws, regulations and government policy may affect CQR or the tenants and the attractiveness of an investment in CQR. Further, the impact of actions by governments may affect CQR's activities including such matters as compliance
Slide 20: Selling restrictions
Annexure 3 Selling restrictions International Offer Restrictions For personal use only This document does not constitute an offer of units ("Units") of CQR in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Units may not be o
Slide 21: Selling restrictions
Annexure 3 Selling restrictions United Kingdom For personal use only Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Servic
Slide 22: Underwriting arrangement
Annexure 4 Underwriting arrangement Underwriting arrangement For personal use only J.P. Morgan Securities Australia Limited and UBS AG, Australia Branch will be acting as joint lead managers, bookrunners and underwriters to the Placement (JLMs). The Responsible Entity has entered into an Underwritin
Slide 23: Further information
Further information For personal use only Greg Chubb Christine Kelly Phillip Cheetham Retail CEO and Head of Retail Finance and Head of Listed Investor Executive Director Deputy Fund Manager Relations Charter Hall Retail REIT Charter Hall Retail REIT Charter Hall T: +61 2 8651 9355 T: +61 2 8651 940
Slide 24: Office addresses
For personal use only Sydney Head Office Melbourne Brisbane Perth Adelaide Level 20, No.1 Martin Place Level 14, 570 Bourke Street Level 22, Northbank Plaza Level 5, St Georges Square Level 2, 80 Pirie Street Sydney, NSW, 2000 Melbourne VIC 3000 69 Ann Street 225 St Georges Terrace Adelaide SA 5000
Charter Hall Retail REIT — Investor Presentation (April 2020) on 6ix