Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — Merger or Acquisition (December 2018)
35 slides from Charter Hall Long Wale Reit's merger presentation, Dec 5, 2018
Slide 1: Charter Hall Long WALE REIT Portfolio Acquisition and Equity Raising Presentation
Monarto Hatchery, South Australia 5 December 2018 Charter Hall Long WALE REIT Portfolio Acquisition and Equity Raising Presentation Not for release to US wire services or distribution in the United States
Slide 2: Disclaimer
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Disclaimer Important Notice This presentation ("Presentation") has been prepared by and is the sole responsibility of Charter Hall WALE Limited (ABN 20 610 772 202, Australian Financi
Slide 3: Disclaimer
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Disclaimer Distribution This Presentation is for information purposes only and is not a prospectus, disclosure document, product disclosure statement or other offering document under
Slide 4: Table of contents
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Table of contents 1 Transaction overview 5 Appendix 2 Strategic rationale 6 Pro forma balance sheet 18 3 Acquisition overview 7 Acquisition portfolio details 20 4 Portfolio impact 9 O
Slide 5: Transaction overview
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Transaction overview • Charter Hall WALE Limited, as responsible entity of Charter Hall Long WALE REIT (the "REIT"), has entered into agreements to acquire a 100% interest in a portfo
Slide 6: Strategic rationale
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Strategic rationale Improves portfolio WALE, tenant covenant strength and introduces exposure to the agri-logistics sector 1 2 Strategic assets with ASX-listed tenant Long-term, tripl
Slide 7: Acquisition overview
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Acquisition overview The Acquisition comprises 27 agri-logistics properties with triple net leases to an ASX-listed tenant2 and a remaining lease term of 15.8 years Portfolio overview
Slide 8: Acquisition overview (continued)
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Acquisition overview (continued) Acquisition is geographically diversified across all Australian states with 62% of properties by value located on the Eastern Seaboard Mt Alford Hatch
Slide 9: Portfolio impact
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Portfolio impact The Acquisition increase CLW's WALE and introduces exposure to the agri-logistics sector Pre Acquisition1 Acquisition Post Acquisition Number of properties 85 27 112
Slide 10: Portfolio impact (continued)
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Portfolio impact (continued) The Acquisition increases the proportion of the REIT's portfolio leased to ASX-listed tenants Major tenants1 54% ASX listed: food / liquor 59% 22% Govn. /
Slide 11: Portfolio impact (continued)
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Portfolio impact (continued) Combined impact of the Acquisition and other FY19 property transactions already announced, materially increases the REIT’s portfolio WALE • Portfolio Acqu
Slide 12: Market update – December valuations
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Market update – December valuations December 2018 property valuations increasing by $30.6 million or 1.9% over prior values 79 of the REIT's 85 existing properties (c.78% of the portf
Slide 13: Entitlement Offer
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Entitlement Offer $125 million fully underwritten accelerated non-renounceable entitlement offer The REIT will undertake a fully underwritten Entitlement Offer of approximately $125 m
Slide 14: Entitlement Offer (continued)
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Entitlement Offer (continued) • 1 for 8.1 accelerated non-renounceable entitlement offer to raise approximately $125 million – Record date is 7 December 2018 at 7:00pm (AEDT) Structur
Slide 15: Entitlement Offer (continued) – Timetable
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Entitlement Offer (continued) Timetable Event Date 2018 Trading halt and announcement of the Acquisition and Entitlement Offer Wednesday, 5 December Institutional Entitlement Offer co
Slide 16: Conclusion
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Conclusion Portfolio of strategic agri-logistics assets leased to Australia's largest poultry producer, Inghams Group Ltd. Long term WALE of 15.8 years increasing CLW portfolio WA
Slide 17: Appendix
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Appendix 17
Slide 18: Pro forma balance sheet
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Pro forma balance sheet Independent Acquisition and Jun-18 pro forma $m Jun-181 SPP valuations Entitlement Offer2 (post-transaction) Cash 5.5 5.5 Investment properties 951.9 13.7 207.
Slide 19: Appendix
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Appendix 19
Slide 20: Acquisition portfolio details
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Acquisition portfolio details Address Suburb State Value (A$m) Cap rate Gross Building Area Site Area Hatcheries Lot 267 Dwyers Ridge Road Mt Alford QLD 17.7 7.00% 6,424 sqm 645,800 s
Slide 21: Appendix
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Appendix 21
Slide 22: Overview of the poultry market
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Overview of the poultry market The poultry market is underpinned by favourable demand drivers Poultry processing revenue Key demand drivers $6.8bn Forecast 1. Strong population growth
Slide 23: Overview of poultry assets
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Overview of poultry assets The Acquisition properties are strategically located in Inghams' supply chain infrastructure Property types1 Poultry meat processing supply chain • Produce
Slide 24: Appendix
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Appendix 24
Slide 25: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Summary of key risks Transaction specific risks Simplification transaction Acquisition risk The REIT has sought a private binding ruling and a class ruling on behalf of investors purs
Slide 26: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Summary of key risks Re-leasing and vacancy risk Tenant concentration Although the REIT's portfolio is currently fully leased, in the longer term, the REIT's portfolio’s leases will T
Slide 27: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Summary of key risks Reliance on third parties Debt facility undertakings and covenants The Responsible Entity may engage third party service providers in respect of a part or the who
Slide 28: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Summary of key risks Insolvency Occupational health and safety In the event of any liquidation or winding up of the REIT, the claims of the REIT's creditors, including any There is a
Slide 29: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Summary of key risks Operator risk Macro-economic While the REIT is not an operator of any retail assets, the valuation and yield of the REIT’s retail assets Changes in the general ec
Slide 30: Appendix
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Appendix 30
Slide 31: Foreign selling restrictions
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Foreign selling restrictions This document does not constitute an offer of Securities in any jurisdiction in which it would be unlawful. In particular, this document may not be distri
Slide 32: Foreign selling restrictions
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Foreign selling restrictions Switzerland The New Securities may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchan
Slide 33: Appendix
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Appendix 33
Slide 34: Glossary
Charter Hall | Charter Hall Long WALE REIT | Portfolio Acquisition and Equity Raising Presentation | 5 December 2018 Glossary Defined term Meaning Balance Sheet Gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets less cash. Capi
Slide 35: www.charterhall.com.au
Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 Melbourne Level 12, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 4000 T: +61 7 3228 2000 Perth Level 5, St Georges Square 225 St Georges Terrac
Charter Hall Long WALE REIT — Merger or Acquisition (December 2018) on 6ix