Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — Merger or Acquisition (June 2019)
35 slides from Charter Hall Long Wale Reit's merger presentation, Jun 5, 2019
Slide 1: Portfolio acquisition and equity raising presentation
For personal use only 5 June 2019 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 Long WALE REIT | Portfolio acquisition and equity raising presentation 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
Slide 3: Disclaimer
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Disclaimer For personal use only Distribution This Presentation is for information purposes only and is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian
Slide 4: Agenda
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Portfolio acquisition and equity raising presentation Agenda For personal use only 1. Transaction overview 5 Appendix 2. Acquisitions overview 8 A. Pro forma metrics and capital management initiatives 21 3. Operation
Slide 5: Transaction overview
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Transaction overview For personal use only • Charter Hall WALE Limited, as responsible entity of Charter Hall Long WALE REIT (the "REIT"), has entered into agreements for the $206m 6.1% acquisition of two office prop
Slide 6: Transaction overview
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Transaction overview For personal use only • Including the impact of the Acquisitions, Placement and ongoing capital management initiatives and barring any unforeseen events and no material change in market condition
Slide 7: Strategic rationale
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Strategic rationale For personal use only High quality properties with a long WALE, strong tenant covenants and structured growth profile 1 2 High quality and diversified properties Long WALE, strong tenant covenants
Slide 8: Acquisitions overview
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Acquisitions overview High quality, long WALE portfolio For personal use only Diversified $206 million portfolio of long leased office and industrial/logistics properties Office Industrial Thales Australian Head Bris
Slide 9: Brisbane City Council Bus Network Terminal, Eagle Farm, QLD
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Acquisitions overview Brisbane City Council Bus Network Terminal, Eagle Farm, QLD For personal use only Highly strategic, prime industrial asset underpinned by long term government lease Property overview • 6-hectare
Slide 10: Telstra Canberra Head Office, ACT
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Acquisitions overview Telstra Canberra Head Office, ACT For personal use only High quality office property occupied by one of Australia’s largest companies Property overview • A-Grade office building, well located in
Slide 11: Thales Australian Head Office, Sydney Olympic Park, NSW
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Acquisitions overview Thales Australian Head Office, Sydney Olympic Park, NSW For personal use only Long WALE, A-grade office property occupied by a leading multinational corporation Property overview • A-Grade, five
Slide 12: June valuations & portfolio update
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Operational update June valuations & portfolio update For personal use only Building on strong tenant relationships June valuations • 113 of the REIT’s 114 existing properties1 were independently valued at June 2019
Slide 13: Portfolio snapshot
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Portfolio impact Portfolio snapshot For personal use only The Acquisitions enhance CLW's portfolio scale and diversification Pre Portfolio Post Portfolio acquisition1 Acquisitions acquisition Number of properties 114
Slide 14: Industry diversification
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Portfolio impact Industry diversification For personal use only The Acquisitions introduce three new high quality tenants to CLW's portfolio Major tenants1 59% ASX listed: food / liquor 52% 19% Govn. / govn. related
Slide 15: Lease expiry profile
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Portfolio impact Lease expiry profile For personal use only Portfolio WALE of 12.5 years1 post Acquisitions and SUEZ lease extensions Portfolio WALE 12.5 years1 26% 24% 14% 14% 13% 11% 10% 9% 7%7% 8%7% 4%4% 5% 3%3% 4
Slide 16: Sources and uses of funds
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Equity raising Sources and uses of funds For personal use only $180m fully underwritten institutional placement and non-underwritten security purchase plan • The REIT will undertake a fully underwritten institutional
Slide 17: Equity raising details
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Equity raising Equity raising details For personal use only $180m fully underwritten institutional placement and non-underwritten security purchase plan • Fully underwritten institutional placement to raise approxima
Slide 18: Timetable
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Equity raising Timetable For personal use only Event Date 2019 Record date for SPP 4 June Trading halt and announcement of the Transaction 5 June Institutional Placement bookbuild 5 June Trading halt lifted – trading
Slide 19: Conclusion
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Conclusion For personal use only High quality Acquisitions comprising office and industrial properties predominantly leased to multinational, ASX-listed and government tenants Strategic portfolio with a long term
Slide 20: Appendix A
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation For personal use only Appendix A 20 Telstra Canberra Head Office
Slide 21: Pro forma balance sheet
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Pro forma balance sheet For personal use only Post balance sheet Acquisitions and Capital management $m Dec-18 Dec-18 pro forma3 date adjustments1 Placement2 initiatives Cash 5.5 5.5 Investment properties 1,165.4 31.
Slide 22: Capital management initiatives
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Capital management initiatives For personal use only • As part of ongoing capital management initiatives, the REIT has: – Extended its existing bank debt facility by one year – Introduced a new offshore lender with a
Slide 23: Reconciliation of portfolio metrics
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Reconciliation of portfolio metrics For personal use only Post balance sheet Dec-18 pro forma Dec-18 pro forma $m Dec-18 Acquisitions date adjustments1 (pre Acquisitions) (post Acquisitions) Properties 113 1 114 3 11
Slide 24: Appendix B
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation For personal use only Appendix B 24 Brisbane City Council Bus Network Terminal
Slide 25: Summary of key risks
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Summary of key risks For personal use only Transaction specific risks Simplification transaction Acquisition risk The REIT has sought a private binding ruling and a class ruling on behalf of investors pursuant to a s
Slide 26: Summary of key risks
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Summary of key risks For personal use only Re-leasing and vacancy risk Tenant concentration In the longer term, the REIT's portfolio’s leases will come up for renewal on a periodic basis. There is a risk that the The
Slide 27: Summary of key risks
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Summary of key risks For personal use only 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 whole of the R
Slide 28: Summary of key risks
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Summary of key risks For personal use only 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 counterparty There is
Slide 29: Summary of key risks
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Summary of key risks For personal use only Operator risk Macro-economic While the REIT is not an operator of any of the properties in the LWIP portfolio, the valuation and yield of these assets Changes in the general
Slide 30: Appendix C
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation For personal use only Appendix C 30 Brisbane City Council Bus Network Terminal
Slide 31: Foreign selling restrictions
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Foreign selling restrictions For personal use only 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 distributed to an
Slide 32: Foreign selling restrictions
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Foreign selling restrictions 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 Ki
Slide 33: Appendix D
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation For personal use only Appendix D 33 Brisbane City Council Bus Network Terminal
Slide 34: Glossary
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Glossary For personal use only 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. Capitalisation
Slide 35: For personal use only
Charter Hall Long WALE REIT | Portfolio acquisition and equity raising presentation Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 14, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza
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