Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — Merger or Acquisition (November 2019)
32 slides from Charter Hall Long Wale Reit's merger presentation, Nov 4, 2019
Slide 1: Portfolio growth from acquisitions and equity raising
The Glasshouse, 45-61 Waterloo Road, Macquarie Park, NSW Artist’s impression For personal use only Charter Hall Long WALE REIT Portfolio growth from acquisitions and equity raising 4 November 2019 Not for release to US wire services or distribution in the United States
Slide 2: Disclaimer
Portfolio growth from acquisitions and equity raising Disclaimer For personal use only 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 Financial Services Licence Number 486721) (“Resp
Slide 3: Disclaimer (cont.)
Portfolio growth from acquisitions and equity raising Disclaimer (cont.) For personal use only Forward-looking statements This Presentation contains certain “forward-looking statements”, including expectations about the success of the Equity Raising. The words “forecast”, “estimate”, “likely”, “anti
Slide 4: Agenda
For personal use only 1. Transaction overview 5 Appendix Agenda 2. Acquisitions overview 3. Portfolio impact 7 10 A. Pro forma balance sheet B. Summary of key risks 17 19 Acquisitions and 4. Sources and uses of funds 13 C. International offer restrictions 26 equity raising 5. Equity raising 14 D. Gl
Slide 5: Transaction overview
Portfolio growth from acquisitions and equity raising Transaction overview • Charter Hall Long WALE REIT has entered into agreements to acquire the following: For personal use only ‒ A 15% interest1 in the Global Headquarters of Telstra Corporation Limited (“Telstra”) at 242 Exhibition Street, Melbo
Slide 6: Strategic rationale
Portfolio growth from acquisitions and equity raising Strategic rationale Acquisition of a portfolio of high quality properties with long leases to blue chip tenants For personal use only 1 2 High quality, modern properties in prime locations Long leases to quality tenants 242 Exhibition Street, M
Slide 7: Acquisition overview – Exhibition Street, Melbourne
Portfolio growth from acquisitions and equity raising Acquisition overview – 242 Exhibition Street, Melbourne Iconic Melbourne CBD office building predominantly leased to Telstra as its Global Headquarters For personal use only Property overview • A-Grade, 47-storey office building located in the Me
Slide 8: Acquisition overview – The Glasshouse, Macquarie Park, Sydney
Portfolio growth from acquisitions and equity raising Acquisition overview – The Glasshouse, 45-61 Waterloo Road, Macquarie Park, Sydney A-Grade office development, 70% pre-committed to NSW Government on a long lease For personal use only Artist’s impression Property overview • Upon completion, The
Slide 9: Acquisition overview – Bunnings Palmerston, Darwin
Portfolio growth from acquisitions and equity raising Acquisition overview – Bunnings Palmerston, Darwin New large format Bunnings store on a long lease For personal use only Property overview • Upon completion, Bunnings Palmerston will be a new, large format store built to Bunnings’ latest standard
Slide 10: The Acquisitions increase CLW's eastern seaboard and office exposure
Portfolio growth from acquisitions and equity raising Portfolio impact The Acquisitions increase CLW’s eastern seaboard and office exposure For personal use only Pre Post Acquisitions Acquisitions1 Acquisitions Number of properties 155 3 158 Property valuation $2,546m $331m $2,877m Weighted Average
Slide 11: Industry diversification
Portfolio growth from acquisitions and equity raising Industry diversification1 Increased weighting to secure government and non-food/liquor ASX-listed tenants For personal use only Major tenants1 ASX listed: 46% food/liquor 42% ASX listed: 25% banks/non- food/other 28% Government/ 19% government re
Slide 12: Lease expiry profile
Portfolio growth from acquisitions and equity raising Lease expiry profile Long portfolio WALE of 13.0 years post Acquisitions For personal use only Portfolio WALE post- Acquisitions 13.0 years 21.6% 19.5% 14.3% 13.0% 11.3% 10.4% 10.2% 9.8% 9.4% 8.6% 8.2% 7.8% 7.4% 5.8% 5.5% 5.2% 4.0% 4.1% 3.7% 2.7%
Slide 13: Sources and uses of funds
Portfolio growth from acquisitions and equity raising Sources and uses of funds Acquisitions funded through a fully underwritten $242 million Equity Raising and the drawdown of For personal use only new and existing debt facilities • The REIT will undertake a fully underwritten Placement and Entitle
Slide 14: Equity Raising overview
Portfolio growth from acquisitions and equity raising Equity Raising overview $242 million fully underwritten institutional placement and accelerated non-renounceable entitlement offer For personal use only • A fully underwritten equity raising of approximately $242 million to partially fund the Acq
Slide 15: Timetable
Portfolio growth from acquisitions and equity raising Timetable For personal use only Event Date 2019 Trading halt and announcement of the Acquisitions and Equity Raising Monday, 4 November Placement and Institutional Entitlement Offer conducted Monday, 4 November Trading of securities recommences o
Slide 16: Conclusion
Portfolio growth from acquisitions and equity raising Conclusion For personal use only Acquisition of modern and well located properties that are predominantly leased to high quality ASX- listed and government tenants Acquisitions have a long WALE of 10.9 years and weighted average fixed rent re
Slide 17: Appendix A
242 Exhibition Street, Melbourne, VIC Appendix A For personal use only 17
Slide 18: Pro forma balance sheet
Portfolio growth from acquisitions and equity raising Pro forma balance sheet For personal use only ($m) Jun-191 Acquisitions and Equity Raising Jun-19 pro forma Cash 6.4 6.4 Investment properties 1,438.2 207.0 1,645.2 Equity accounted investments 707.4 56.02 763.5 Other assets 16.8 16.8 Total asset
Slide 19: Appendix B
The Glasshouse, 45-61 Waterloo Road, Macquarie Park, NSW Artist’s impression Appendix B For personal use only 19
Slide 20: Summary of key risks
Portfolio growth from acquisitions and equity raising Summary of key risks For personal use only Transaction specific risks Unrealised capital gains The REIT will inherit the CGT cost base of the 242 Exhibition Street property held by an existing trust. At the REIT’s Acquisition risk 15% interest, t
Slide 21: Summary of key risks (cont.)
Portfolio growth from acquisitions and equity raising Summary of key risks (cont.) For personal use only Property valuation risk Tenant concentration The value of each property held by the REIT, and those it may hold in the future, may fluctuate due to a The majority of the properties comprising the
Slide 22: Summary of key risks (cont.)
Portfolio growth from acquisitions and equity raising Summary of key risks (cont.) For personal use only Capital expenditure Funding The REIT will be responsible for capital expenditure that may arise. The Responsible Entity may fund future refinancing, capital expenditure and acquisitions from eith
Slide 23: Summary of key risks (cont.)
Portfolio growth from acquisitions and equity raising Summary of key risks (cont.) For personal use only Gearing Compliance The level of gearing exposes the REIT to any changes in interest rates and increases the REIT's exposure The REIT is a managed investment scheme which means that the Responsibl
Slide 24: Summary of key risks (cont.)
Portfolio growth from acquisitions and equity raising Summary of key risks (cont.) For personal use only Disputes and litigation Operator risk The REIT may in the ordinary course of business be involved in possible litigation and disputes (for While the REIT is not an operator of any of the properti
Slide 25: Summary of key risks (cont.)
Portfolio growth from acquisitions and equity raising Summary of key risks (cont.) For personal use only There are risks associated with any stock market investment. These include, but are not limited to: Consequently the trading price of securities may be influenced by factors non-specific to the R
Slide 26: Appendix C
242 Exhibition Street, Melbourne, VIC Appendix C For personal use only 26
Slide 27: International Offer Restrictions
Portfolio growth from acquisitions and equity raising International Offer Restrictions For personal use only This document does not constitute an offer of new securities of CLW (“New Securities”) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed t
Slide 28: International Offer Restrictions (cont.)
Portfolio growth from acquisitions and equity raising International Offer Restrictions (cont.) For personal use only United Kingdom 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 prosp
Slide 29: Appendix D
242 Exhibition Street, Melbourne, VIC Appendix D For personal use only 29
Slide 30: Glossary
Portfolio growth from acquisitions and equity raising Glossary For personal use only ASX Australian Securities Exchange Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, Balance sheet gearing less cash CLW or the REIT Charter Hall Lo
Slide 31: Contact Information
Contact Information For personal use only Avi Anger Kerri Leech Darryl Chua Phillip Cheetham Fund Manager Head of Finance Deputy Fund Manager Head of Listed Investor Charter Hall Charter Hall Charter Hall Relations Long WALE REIT Long WALE REIT Long WALE REIT Charter Hall T: +61 2 8651 9111 T: +61 2
Slide 32: For personal use only
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
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