Charter Hall Group · ASX:CHC
Charter Hall — Shareholder Meeting (November 2015)
48 slides from Charter Hall's shareholder meeting presentation, Nov 11, 2015
Slide 1: Chair's address: welcome, agenda and board introduction
Charter Hall Group Annual General Meeting 2015 - Chair’s address For personal use only 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 Cl
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 For personal use only • Final
Slide 3: Chair's address: earnings, people and sustainability
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 For personal use only 24.2
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. For personal use only Charter Hall has
Slide 5: Charter Hall Group 2015 Annual General Meeting
For personal use only Charter Hall Group 2015 Annual General Meeting 11 November 2015
Slide 6: Agenda
Agenda For personal use only 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 | 2
Slide 7: Board of Directors
Board of Directors For personal use only CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 8: Board of Directors
Board of Directors For personal use only 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 Joi
Slide 9: Chair's Address
Chair’s Address For personal use only CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 10: Our Vision
Our Vision For personal use only CHARTER HALL GROUP | 2015 Annual General Meeting 6
Slide 11: Total Securityholder Returns
Total Securityholder Returns For personal use only • 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
Slide 12: Solid Earnings and Distribution Growth
Solid Earnings and Distribution Growth For personal use only 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 securi
Slide 13: Investing in our Business and our People
Investing in our Business and our People For personal use only • 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 be
Slide 14: Corporate Responsibility and Sustainability
Corporate Responsibility and Sustainability For personal use only 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
Slide 15: Joint Managing Directors' Address
Joint Managing Directors’ Address For personal use only CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 16: Consistent Delivery on Strategy
Consistent Delivery on Strategy For personal use only 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
Slide 17: Operating Earnings Composition
Operating Earnings Composition For personal use only 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 Inves
Slide 18: Property Investments Portfolio
Property Investments Portfolio For personal use only 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 asset
Slide 19: Well Diversified Funds Management Portfolio
Well Diversified Funds Management Portfolio For personal use only 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 7.6
Slide 20: Australian FUM Growth Drives Earnings
Australian FUM Growth Drives Earnings For personal use only 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 o
Slide 21: Property Transactions
Property Transactions For personal use only 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 additi
Slide 22: Secured Inflows Across the Funds Platform
Secured Inflows Across the Funds Platform For personal use only 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 e
Slide 23: Office Market
Office Market For personal use only 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 advertisemen
Slide 24: Retail Markets
Retail Markets For personal use only 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
Slide 25: Industrial Market
Industrial Market For personal use only 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
Slide 26: Upgrade to FY16 earnings per security guidance
Upgrade to FY16 earnings per security guidance For personal use only 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,
Slide 27: Formal Business
Formal Business For personal use only CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 28: Formal Business
Formal Business For personal use only • 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
Slide 29: Item: Annual Report
Item 1 For personal use only • 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
Slide 30: Resolutions
Resolutions For personal use only 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 pro
Slide 31: Resolution 2.1
Resolution 2.1 For personal use only 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 w
Slide 32: Resolution 2.1 – Proxies
Resolution 2.1 – Proxies For personal use only 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 For personal use only 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 w
Slide 34: Resolution 2.2 – Proxies
Resolution 2.2 – Proxies For personal use only 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 For personal use only 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
Slide 36: Resolution 3 – Proxies
Resolution 3 – Proxies For personal use only 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 For personal use only 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 d
Slide 38: Resolution 4.1 – Proxies
Resolution 4.1 – Proxies For personal use only 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 For personal use only 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 Davi
Slide 40: Resolution 4.2 – Proxies
Resolution 4.2 – Proxies For personal use only 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 For personal use only 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
Slide 42: Resolution 5.1 – Proxies
Resolution 5.1 – Proxies For personal use only 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 For personal use only 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
Slide 44: Resolution 5.2 – Proxies
Resolution 5.2 – Proxies For personal use only FOR: 99.62% OPEN: 0.04% AGAINST: 0.34% ABSTAIN: 781,017 CHARTER HALL GROUP | 2015 Annual General Meeting 40
Slide 45: Questions
Questions For personal use only CHARTER HALL GROUP | 2015 Annual General Meeting
Slide 46: Close of Meeting
For personal use only Close of Meeting
Slide 47: Disclaimer
Disclaimer For personal use only 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
Slide 48: 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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