Slide 1: 2021 Full Year Results
2021 Full Year Results Charter Hall Group 23 August 2021 CharterHall Charter HallGroup Group 2021 2021Full FullYear YearResults Results
Slide 2: Acknowledgment of Country
Acknowledgment of Country Charter Hall is proud to work with our customers and communities to invest in, develop, and create property assets on land across Australia and New Zealand. We pay our respects to the traditional owners, their elders past and present and value their care and custodianship o
Slide 3: Agenda
Agenda David Harrison Managing Director & Group CEO 1. Highlights and Strategy 2. Property Funds Management Sean McMahon Chief Investment 3. Property Investment Officer 4. Financial Result 5. Outlook and Guidance 6. Additional Information Russell Proutt Chief Financial Officer Cover: MidWest Logisti
Slide 4: Highlights and Strategy
1 Highlights and Strategy 2 Chifley Square, Sydney CharterHall Charter HallGroup Group 2021 2021Full FullYear YearResults Results Results
Slide 5: Group highlights
Highlights and Strategy Group highlights1 Group Returns Property Investments Funds Management Investment Capacity Operating earnings Property Investment portfolio FUM Group investment capacity 6 $284 million $2.4bn $52.3bn $6.7bn Statutory profit 2 Up 29.0% or $477 million $11.7bn Balance sheet 4 OE
Slide 6: Our strategy
Highlights and Strategy Our strategy We use our property expertise to access, deploy, manage and invest equity in our core real estate sectors to create value and generate superior returns for our customers Access Deploy Manage Invest Accessing equity from listed, Creating value through attractive F
Slide 7: Operating earnings per security growth
Highlights and Strategy Operating earnings per security growth Operating earnings per security growth Distributions per security growth OEPS (pre-tax) cps DPS (grossed up) 44.4cps 43.4cps OEPS (post-tax) cps 86.6cps DPS (cash paid) 40.0cps 36.9cps 74.2cps 37.9cps 35.7cps 69.3cps 33.7cps 31.8cps 56.3
Slide 8: 30 years of active partnership
Highlights and Strategy 30 years of active partnership ’96 ’07 ’14 Australia’s first institutional ’19 opportunistic property fund Launches CPIF, now Launches LWIP and LWHP, Secures Telstra Exchange launched with AMP Capital. A series valued at $7.9bn with a current combined and BP portfolios for of
Slide 9: Charter Hall performance
Highlights and Strategy Charter Hall performance Outperformance relative to AREIT Index Total Shareholder Return vs S&P/ASX 200 Property Accumulation Index (XPJAI) (Compound Annual Growth Rate) 64.1% p.a. CHC XPJAI 37.9% p.a. 33.2% p.a. 30.3% p.a. 28.2% p.a. 18.2% p.a. 11.8% p.a. 7.7% p.a. 5.8% p.a.
Slide 10: Property Funds Management
Charter CharterHall 2021 2021Full HallGroup Group FullYear YearResults Results 2 Property Funds Management Arnott’s, Huntingwood Distribution Facility, Huntingwood 1 0
Slide 11: Group funds management portfolio
Property Funds Management Group funds management portfolio FUM has increased to $52.3bn Portfolio value Lettable area No. of Net rent WALE Occupancy WACR ($bn) (m sqm) Properties ($m) (years) (%) (%) 30 June 2021 52.3 9.0 1,388 2,492 9.1 97.7 4.79 30 June 2020 40.5 7.9 1,104 2,167 8.6 97.5 5.27 FUM
Slide 12: Diversified tenant customers
Property Funds Management Diversified tenant customers The top 20 tenants make up 58% of platform rent – 24% of platform leases are NNN – Cross-sector relationships continue to drive platform growth Top 20 platform tenants by net income 14.0% 6.5% 5.8% 4.8% 4.7% 3.2% 2.5% 2.0% 1.9% 1.8% 1.6% 1.5% 1.
Slide 13: Funds Under Management (FUM) growth
Property Funds Management Funds Under Management (FUM) growth 5 year FUM CAGR of 24.5% FUM growth ($bn) FUM by equity source ($bn) $52.3bn $52.3bn $1.8bn $4.1bn $8.2bn $8.0bn ($2.1bn) $40.5bn $10.8bn $6.1bn $40.5bn $30.4bn $8.2bn $33.3bn $5.0bn $23.2bn $19.8bn $6.3bn $26.3bn $2.9bn $17.5bn $2.8bn $4
Slide 14: Sale and leaseback activity
Property Funds Management Sale and leaseback activity Charter Hall is the market leader in Australian sale and leaseback partnerships Charter Hall sale and leaseback Existing Charter Hall sale and leaseback partnerships transactions 1 (by tenant industry) Other Government & Capital Goods 5% universi
Slide 15: FY21 transactional activity
Property Funds Management FY21 transactional activity $10.1bn of transactional activity, comprising over 100 transactions with 20 active funds/partnerships Social Industrial & Long WALE Infrastructure/ Shopping Centre Logistics Retail Office Other Retail Total Acquisitions ($bn) 2.8 2.2 2.3 0.7 - 8.
Slide 16: Development drives FUM growth
Property Funds Management Development drives FUM growth 94% of Industrial and 66% of Office development WIP is pre-leased Completion value($m) Completions Committed Uncommitted Total (last 12 projects projects3 pipeline4 months) Industrial & Logistics 869 1,490 1,545 3,034 Long WALE Retail - 109 - 1
Slide 17: Equity inflows
Property Funds Management Equity inflows ($m) FY18 FY19 FY20 FY21 - Strong period of inflows from all equity Wholesale pooled funds 649 1,802 1,272 2,111 sources - Continued growth in Wholesale pooled Wholesale partnerships 322 219 1,298 1,448 funds and partnerships - Growth in equity inflows contin
Slide 18: Property Investment
CharterHall Charter 2021 2021Full HallGroup Group FullYear YearResults Results Results 3 Property Investment 130 Lonsdale Street, Melbourne
Slide 19: Property Investment portfolio
Property Investment Property Investment portfolio Property Investment WALE increased from 8.7 to 9.1 years Portfolio Value No. of WALE Occupancy WARR WACR WADR ($bn) Properties (years) (%) (%) (%) (%) 30 June 2021 2.4 1,322 9.1 97.4 3.1 4.86 6.0 30 June 2020 2.0 1,027 8.7 97.6 3.3 5.25 6.5 Sector al
Slide 20: Property investment portfolio movement
Property Investment Property investment portfolio movement PI yield of 6.1% remains attractive Property Investment portfolio movement Property Investment portfolio yield 10.0% $153m $2,409m $2,409m 8.0% $2,028m $228m $1,844m $1,706m 6.0% $1,527m $1,098m 4.0% $2,028m 2.0% - Jun-20 Change in Net inves
Slide 21: Diversified Property Investment earnings
Property Investment Diversified Property Investment earnings No single asset contributes more than 5% of portfolio investments – 76% repeat and 39% multi-sector customers across 2,524 leases – Tenant retention rate of 81.3% for the 12 months to 30 June 2021 Top 10 tenants by net income1 Property Inv
Slide 22: Achievements
Property Investment ESG is a strong focus across the Charter Hall platform We deliver in partnership with tenant customers and investors Environment: Social: Governance: Climate resilience Strong communities Responsible business Achievements 2020 PRI 41MW 100% 90% Best Places Employer of Choice TCFD
Slide 23: Financial Result
CharterHall Charter 2021 2021Full HallGroup Group FullYear YearResults Results Results 4 Financial Result Coles Distribution Centre, Sturton, Adelaide
Slide 24: Earnings summary
Financial Result Earnings ($m) FY20 FY21 Change % summary PI EBITDA 120.0 123.0 2.5% DI EBITDA 17.1 34.2 100.0% - PI EBITDA increased by 2.5%, with continued PFM EBITDA 1 289.0 204.4 (29.3%) recycling of capital into new funds and EBITDA 426.1 361.6 (15.1%) partnerships Depreciation (10.6) (7.8) (26
Slide 25: Property funds management
Financial Result Property funds ($m) FY20 FY21 Change % management Fund management fees 153.3 187.8 22.5% Transaction and performance fees 203.8 66.8 (67.2%) - Funds management fees up 22.5% driven by Investment management revenue 357.1 254.6 (28.7%) continued momentum in FUM growth Property managem
Slide 26: Balance sheet and return metrics
Financial Result Balance sheet ($m) 30 Jun 2020 30 Jun 2021 and return metrics Cash Property investment 237 2,028 344 2,409 Development investment 48 76 - Available cash of $344 million Other assets1 107 123 - Balance sheet gearing of 5.0% post-issuance Intangibles 119 115 of the $250m A$MTN in Apri
Slide 27: Capital management
Financial Result Capital management Funds platform debt metrics1 30 Jun 2020 30 Jun 2021 Total platform facility limits ($m) 16,553 20,089 - $6.7bn of available liquidity plus committed Total platform undrawn debt ($m) 3,585 5,043 and uncalled equity Total platform cash ($m) 1,411 1,634 - $9.1bn of
Slide 28: Outlook and Guidance
Charter CharterHall HallGroup Group 2021 Full Year Results 2021 Full Year Results 5 Outlook and Guidance 10 Shelley Street, Sydney
Slide 29: FY22 operating earnings guidance
Outlook and Guidance FY22 operating earnings guidance Based on no material adverse change in current market conditions, FY22 guidance is for post-tax operating earnings per security of no less than 75.0cps. FY22 distribution per security guidance is for 6% growth over FY21. Guidance of 23% OEPS grow
Slide 30: Additional Information
CharterHall Charter 2021 2021Full HallGroup Group FullYear YearResults Results Results 6 Additional Information GPO Exchange, 10 Franklin Street, Adelaide
Slide 31: Management bench experience
Additional Information Management bench experience Charter Hall Executive leadership group David Harrison Managing Director & Group CEO 34 years industry experience Sean McMahon Russell Proutt Carmel Hourigan Richard Stacker Natalie Devlin Greg Chubb Steven Bennett Sheridan Ware Chief Investment Chi
Slide 32: Property footprint
Additional Information Charter Hall Group Property footprint1 0.1bn $ 8.5bn $ $ 4.2bn 2.4bn $ 22.7bn $ 12.9bn $ 0.3bn $ 0.6bn $ Charter Hall Group 2021 Full Year Results 1. Excludes Maxim and other smaller investments 32
Slide 33: Charter Hall managed funds
Additional Information Charter Hall managed funds Industrial Long WALE Social Shopping Centre & Logistics Retail Office Infrastructure/ Retail Other $ 15.5bn $6.7bn $22.8bn $ 3.4bn $ 3.8bn Wholesale CPIF CLP1 LWHP LWIPs4 CPOF6 CHOT BSWF7 DVAP CHET9 CPRF RPs10 Equity $7.9bn $2.4bn $1.9bn $0.7bn $8.3b
Slide 34: Wholesale pooled and partnerships
Additional Information Wholesale pooled and partnerships FUM Gearing $ 33.3bn 26.3% Occupancy WALE 97.3% 8.3yrs Cap rate CHC investment 4.62% $ 1.4bn 2 Market Street, Sydney Charter Hall Group 2021 Full Year Results 34
Slide 35: Wholesale platform
Additional Information Wholesale platform Wholesale Platform, FUM by Equity Origin North America Middle East 6% 0.4% Asia Pacific 22% Europe 12% $33bn 100 investors Australia 59% Tradecoast Industrial Park, Pinkenba Charter Hall Group 2021 Full Year Results 35
Slide 36: Major wholesale property investment portfolio returns
Additional Information Major wholesale property investment portfolio returns Relative to sector specific IPD/MSCI Core Wholesale indices 24.4% 16.1% 14.5% 13.2% 13.2% 13.7% 12.7% 12.8% 11.0% 11.0% 1.0% 1.0% CHOT CPOF CPIF CLP LWHP LWIP 2016 to 2021 2016 to 2021 2016 to 2021 2016 to 2021 2016 to 2021
Slide 37: Listed
Additional Information Listed FUM Gearing $ 10.8bn 25.4% Occupancy WALE 98.2% 11.0yrs Cap rate CHC investment1 5.23% $ 0.7bn bp, Forestville 1. Held at accounting value not market value Charter Hall Group 2021 Full Year Results 37
Slide 38: Charter Hall Direct
Additional Information Charter Hall Direct FUM Gearing $ 8.2bn 29.6% Occupancy WALE 98.6% 8.9yrs Cap rate CHC investment 4.89% $ 0.3bn Kmart Distribution Centre, Lytton Charter Hall Group 2021 Full Year Results 38
Slide 39: Direct funds have returned an average of 13.5% p.a. since inception
Additional Information Direct funds have returned an average of 13.5% p.a. since inception Outperforming their respective MSCI/IPD indices1 by over 1.5x 25.0% 19.9% 20.0% 17.6% 15.8% 15.0% 15.3% 15.0% 11.1% 10.3% 10.4% 10.0% 8.6% 8.5% 8.5% 8.4% 6.7% 6.2% 5.8% 5.0% 3.1% 0.0% DIF2 (WS) DIF3 (WS) DIF4
Slide 40: CHPT Property Investment portfolio
Additional Information CHPT Property Investment portfolio Charter Hall Charter Hall Ownership stake Investment PI Income WALE WACR WADR WARR1 PI Yield2 (%) ($m) ($m) (years) (%) (%) (%) (%) Industrial & Logistics Charter Hall Prime Industrial Fund (CPIF) 1.8 118.8 6.0 10.8 4.3 5.7 2.9 4.8 Core Logis
Slide 41: Statutory balance sheet reconciliation
Additional Information Statutory balance sheet reconciliation Adj. 1: Adj 2: Investor Presentation ($m) Statutory Balance Sheet Reclassify LWF as Equity Reclassify mark-to-market on (slide 26) Accounted investment derivatives Cash 352 (8) - 344 Property Investment 2,343 66 - 2,409 Development Invest
Slide 42: Portfolio performance fee testing frequency
Additional Information Portfolio performance fee testing frequency Fund Testing frequency Brisbane Square Wholesale Fund (BSWF) 3 yearly – FY22, FY25, etc Charter Hall Direct Industrial Fund No. 4 (DIF4) 5 yearly – FY22, FY27, etc Charter Hall Prime Industrial Fund (CPIF) 3 yearly – FY22, FY25, etc
Slide 43: Fund key and glossary
Additional Information Fund key and glossary Listed entities Direct funds ASX:CHC Charter Hall Group DOF Charter Hall Direct Office Fund ASX:CLW Charter Hall Long WALE REIT PFA Charter Hall Direct PFA Fund ASX:CQR Charter Hall Retail REIT DIF2, DIF3, DIF4 Charter Hall Direct Industrial Fund series A
Slide 44: Further information
Additional Information Further information David Harrison Sean McMahon Russell Proutt Philip Cheetham Managing Director Chief Investment Chief Financial Head of Listed & Group CEO Officer Officer Investor Relations Charter Hall Group Charter Hall Group Charter Hall Group Charter Hall Group +61 2 865
Slide 45: Important Notice & Disclaimer
charterhall.com.au/chc IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by Charter Hall Funds Management Limited ACN 082 991 786)) (together, with its related bodies corporate, the Charter Hall Group). This presentation has been prepared without reference to your particular investme