Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — FY2023 Earnings Presentation
33 slides from Charter Hall Long Wale Reit's earnings presentation, Aug 8, 2023
Slide 1: 2023 Full Year Results
CLW Charter Hall Social Infrastructure REIT Charter Hall Long WALE REIT 2023 Full Year Results 2023 Full Year Results
Slide 2: Acknowledgement of Country
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 continued care and contribution to Country. Charter Hall Long WALE REIT 2022 Full Year Results 2023 Charter Hal
Slide 3: Agenda
Agenda 1. Overview and FY23 full year highlights 2. Financial performance 3. Operational update and portfolio overview 4. FY24 guidance 5. Additional information Cover: Coles Distribution Centre Truganina, Melbourne VIC Left: Telstra Exhibition Street Exchange, Melbourne VIC Charter Hall Long WALE R
Slide 4: Overview and FY23 full year highlights
1 Overview and FY23 full year highlights Crows Nest Hotel Charter CharterHall HallLong RetailWALE REIT REIT 2023 Full Year Full Year FY21 Results Results Sydney, NSW
Slide 5: $6.8 billion best in class diversified real estate portfolio
Overview and FY23 full year highlights Best in class diversified real estate portfolio Woolworths Distribution Centre Dandenong, VIC $6.8 billion portfolio value High quality diversified portfolio1 Agri-logistics 4% Social Infrastructure Hospitality 15% 22% Hospitali… Convenience Office retail 18% 1
Slide 6: 6.5% distribution yield generated from blue-chip tenants in resilient industries
Overview and FY23 full year highlights 6.5% distribution yield1 generated from blue-chip tenants in resilient industries 11.2 years long portfolio WALE provides income security Blue chip tenants proportion of Government, ASX-listed, multinational or national tenants 99% 51% of leases are linked to C
Slide 7: FY23 full year highlights
Overview and FY23 full year highlights FY23 full year highlights1 Financial Portfolio Capital performance performance management Operating EPS of 11.2 year WALE 80% of drawn debt hedged 28.0 cents per security long term income security providing protection against rising interest rates in line with
Slide 8: CLW ESG leadership
Overview and FY23 full year highlights CLW ESG leadership Achievements in FY23 Focus areas in FY24+ Environment Net Zero Carbon by 2025 Investing in clean energy 5.3 Star NABERS Energy Active partnership with tenants Accelerated Scope 1 and Scope 2 target 2MW of installed solar, an increase for Offi
Slide 9: Financial performance
Charter CharterHall 2023 Full Year HallLong RetailWALE Full Year REIT REIT FY21 Results Results 2 Sydney, NSW Financial performance Australian Red Cross Alexandria
Slide 10: Earnings summary
Financial performance Earnings summary - FY23 net property income increased by 10.6% A$m FY22 FY23 % change driven by like-for-like growth of 4.4% with the balance driven by acquisition activity Net property income 293.5 324.6 10.6% - Operating expenses increase attributable to full Operating expens
Slide 11: Balance sheet
Financial performance Balance sheet A$m 30 Jun 2022 30 Jun 2023 - $109 million of property acquisitions transacted during the year Cash 19.0 19.7 - $114 million of property divestments completed at Investment properties 3,722.1 3,481.5 prevailing book values Equity accounted investments 2,634.3 2,59
Slide 12: Capital management
Financial performance Capital management Diversified and well balanced, long term debt maturity profile – A$m 200 - Refinanced and extended syndicated debt facility for 100 50 the bp Australia portfolio by four years (CLW share 300 being $225 million of debt) 100 - Balance sheet gearing of 32.9% is
Slide 13: Operational update and portfolio overview
3 Operational update and portfolio overview Bunnings Caboolture Charter CharterHall HallLong RetailWALE REIT REIT Brisbane, QLD 2023 Full Year Full Year FY21 Results Results
Slide 14: Transaction activity highlights
Operational update and portfolio overview Transaction activity highlights Strategic portfolio curation and asset recycling into new WALE enhancing high quality investments Divestments – 3.1 years average WALE1 Investments – 10.2 years average WALE Industrial & logistics Social infrastructure Hospita
Slide 15: $6.8 billion diversified portfolio of high quality real estate
Operational update and portfolio overview $6.8 billion diversified portfolio of high quality real estate Diversified across geography, real estate sector and tenant industries Key metrics Jun 22 Jun 23 Number of properties 549 549 Property valuation (A$m) 7,127 6,831 Weighted Average Capitalisation
Slide 16: 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 19% 4% 19% 3% 13% 3% 10% 3% 5% 2% 4% 1% 4% 1% 1. Weighted by net passing income as at 30 June 2023 Charter Hall Long WALE
Slide 17: Focus on key defensive tenant industries
Operational update and portfolio overview Focus on key defensive tenant industries1 Defensive and resilient to economic shocks Government (19%) Pubs and bottle shops (19%) Telecommunications (13%) Grocery & distribution (10%) The Glasshouse (NSW Government), Sydney New Brighton Hotel, Sydney 242 Exh
Slide 18: Long portfolio WALE
Operational update and portfolio overview Long portfolio WALE1 Blue chip covenants providing long term income security 11.2 years 15.8% 12.0% 9.7% 8.6% 8.1% 6.7% 4.8% 4.8% 3.7% 3.7% 3.8% 3.2% 3.3% 3.4% 3.1% 2.0% 1.2% 0.6% 0.9% 0.3% 0.5% -% FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Slide 19: FY24 guidance
Charter CharterHall 2023 Full Year HallLong RetailWALE Full Year REIT REIT FY21 Results Results 4 Geoscience Australia Canberra, ACT FY24 guidance
Slide 20: FY24 guidance
FY24 guidance FY24 guidance Based on information currently available, including current interest rate and inflation expectations and barring any unforeseen events, CLW provides FY24 Operating EPS guidance of 26.0 cents and DPS guidance of 26.0 cents Coles Distribution Centre Truganina, VIC Represent
Slide 21: Additional information
Charter CharterHall HallLong LongWALE WALEREIT 2023 Full Year Results REIT 5 Young & Jackson Melbourne, VIC Additional information 2021 Full Year Results
Slide 22: FY23 portfolio revaluations
Additional information FY23 portfolio revaluations Long WALE Industrial & Social- Agri- - Portfolio 100% independently revalued at Portfolio valuation (A$m) retail logistics Office infrastructure logistics Total 30 June 2023 Prior book value1 2,996 1,566 1,378 945 314 7,198 - FY23 property valuation
Slide 23: Debt facility summary
Additional information Debt facility summary Debt summary (A$m) – 30 June 2023 Limit Drawn1 Maturity Gearing ICR (covenant) (covenant) Balance sheet debt A$MTN (7, 8.5 and 10 year tranches) 700.0 700.0 Mar-28 to Mar-31 - $3.1 billion of look through debt facilities across Domestic bank bilateral deb
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 FY23 Perth RDC CH DC Kogarah CH BBD Exchange $m CLW LWIP bp Aus CH 242 bp NZ CH LEP CH GSA Total Trust Fund Trust Fund Trust Ownership interest 100% 49.9% 49.9%
Slide 25: CLW and joint venture summary
Additional information CLW and joint venture summary Investment in property joint ventures – operating earnings and balance sheet breakdown FY22 Perth RDC CH DC Kogarah CH BBD Exchange $m CLW LWIP bp Aus CH 242 bp NZ CH LEP Total Trust Fund Trust Fund Trust Ownership interest 100% 49.9% 49.9% 26.0%
Slide 26: Geographic and sector diversification
Additional information Geographic and sector diversification Geographic diversification1 Real estate sector diversification1,2 Northern Territory New Zealand & Tasmania 20.3 year Australian Capital 2% 1% WALE Territory 5% 11.9 year Agri-logistics WALE 4% 8.3 year WALE South Australia Social Infrastr
Slide 27: Property investment portfolio
Additional information Property investment portfolio Long WALE retail – $2.9 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Hospitality ALE portfolio (78 properties) Australia wide 50.0% 848.3 4.54% 5.5 100% 228,707 CPI5 LWIP portfolio (66 pro
Slide 28: Property investment portfolio
Additional information Property investment portfolio Industrial & logistics – $1.5 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Arnott’s, Huntingwood NSW 50.0% 292.5 3.50% 28.5 100% 52,908 CPI + 0.5% National Archives, Chester Hill NSW 100.0
Slide 29: Property investment portfolio
Additional information Property investment portfolio Office – $1.3 billion1 REIT Valuation1 WALE3 NLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) The Glasshouse, Macquarie Park NSW 50.0% 189.0 4.75% 8.6 100% 35,114 3.4% Westpac Building, Kogarah NSW 50.1% 126.8 5.00% 11.1 10
Slide 30: Property investment portfolio
Additional information Property investment portfolio Social infrastructure – $1.0 billion1 REIT Valuation1 WALE3 Area4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Telco Exchanges portfolio (36 properties) Australia wide 24.5% 476.6 3.87% 17.1 100% 347,270 CPI + 0.5% Pitt Stre
Slide 31: Property investment portfolio
Additional information Property investment portfolio Agri-logistics – $264 million1 REIT Valuation1 WALE3 Building area Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Ingham’s portfolio (27 properties) Australia wide 100.0% 264.3 6.20% 20.3 100% 312,668 2.5%4 Total / weighted av
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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