Charter Hall Group · ASX:CHC
Charter Hall — 2015 Macquarie Australia Conference
20 slides from Charter Hall's conference presentation, May 6, 2015
Slide 1: 2015 Macquarie Australia Conference
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S PERSONS 6 May 2015 Charter Hall Group For personal use only 2015 Macquarie Australia Conference
Slide 2: Agenda
Charter Hall Group Agenda For personal use only David Southon David Harrison Paul Altschwager Joint Managing Director Joint Managing Director Chief Financial Officer 1 Group overview 2 Property market drivers 3 Sector overview 4 Growth, FUM and capital markets 2015 Macquarie Australia Conference | N
Slide 3: Group overview
Charter Hall Group Charter Hall Group Group overview1 For personal use only More than 23 years experience investing in and managing Australian real estate Property funds management platform $12.7bn FUM (39% total Group OEPS) 31 Dec 14 • Investment management FUM $12.7bn • Development management • As
Slide 4: Operating earnings growth
Charter Hall Group Operating earnings growth Earnings drivers For personal use only Growth in co-investment yield 800 Property Investment Earnings Drivers 8% Property Investment portfolio ($m) • Property Investment co-investment yield has risen 700 7% materially in recent years from 6.1% in 2010 to
Slide 5: Consistent delivery on strategy
Charter Hall Group Consistent delivery on strategy 1HY15 Results summary For personal use only ACCESS DEPLOY MANAGE INVEST Access to multiple equity Creating value through Property funds Investing alongside our sources attractive investment management, asset capital partners opportunities management
Slide 6: Enhanced portfolio quality
Charter Hall Group Enhanced portfolio quality Property investments For personal use only In line with our strategy, Charter Hall Group has continued to focus on reweighting its Property Investments towards a more diversified portfolio • Property Investment portfolio has increased its exposure to lon
Slide 7: Well diversified funds management portfolio
Charter Hall Group Well diversified funds management portfolio Property funds management For personal use only Portfolio Size No. of No. of Gross income WALE Occupancy Average cap rate ($bn) properties tenants ($m) (years) (%) (%) Dec 14 12.7 270 2,264 1,081 8.1 97.5% 7.30% Jun 14 11.5 209 2,289 1,0
Slide 8: Favourable demographic outlook
Charter Hall Group Favourable demographic outlook Total Australian population and occupied office stock For personal use only Improving employment fundamentals + 20yr Average: 0.65sqm / per person 20yr Correlation: 98.7% Lower $AUD improving international competitiveness Population forecast from 201
Slide 9: Office market
Charter Hall Group Office market Tenant demand recovering and strong capital drivers, but with material upcoming supply For personal use only • Demand has recovered led by strong performances from Relative Supply Under Construction by CBD (Mar-15) Sydney and Melbourne. While Perth remains challenged
Slide 10: Retail market
Charter Hall Group Retail market Long term growth of supermarkets has driven outperformance For personal use only • Over the past 20 years Charter Hall’s preferred retail 20yr Retail Trade CAGR by Category exposures of food-anchored and hardware & garden centres have shown superior growth in retail
Slide 11: Industrial market
Charter Hall Group Industrial market Top performing sector with attractive lease structures, but demand slowed in 2014 For personal use only • Industrial was the top performing sector in 2014 according Total Returns by Property Sector to IPD, with strong risk-adjusted returns driving increased inter
Slide 12: Hospitality market
Charter Hall Group Hospitality market Attractive tenancy structures with strong trade fundamentals For personal use only 20yr Retail Trade Growth • Long term, strong covenant, leases are highly attractive in the current environment. • The declining $AUD has seen recreation & hospitality emerge as Au
Slide 13: Australian FUM growth
Charter Hall Group Australian FUM growth Property funds management For personal use only • FUM growth driven by activity in the Industrial, Retail and new Hospitality sector − Australian property FUM has increased $1.2bn, or 10.4% during 1HY15 to $12.7bn − 13.4% CAGR in domestic FUM since June 2010
Slide 14: Property capital drivers
Charter Hall Group Property capital drivers Property yield spreads to debt and fixed interest returns are highly compelling For personal use only Prime Property Yield Spread to Fixed Interest Prime Property Yield as Multiple of 5yr Bond Rate • While yields have contracted, the spread between • The a
Slide 15: Property capital drivers
Charter Hall Group Property capital drivers Australian superannuation growth vs Australian GDP For personal use only • The combined assets of Australian Superannuation funds now exceed $1.9 trillion, growing by $429b in the past two years. This is more than four times the growth evident in nominal G
Slide 16: Total securityholder returns
Charter Hall Group Total securityholder returns Strong performance For personal use only • Total securityholder return for 1 year to 31 Mar 2015: 42.5% • Best performance in A-REIT 200 index over past 3 years (42.3% p.a) and 5 years (20.3% p.a.)1 Total performance over 1, 3 and 5 years (% pa) Distri
Slide 17: FY15 outlook and earnings guidance
Charter Hall Group FY15 outlook and earnings guidance Outlook and guidance For personal use only As advised at Charter Hall Group’s 1HY15 financial results our guidance remains unchanged as follows: • Absent unexpected events, our FY15 guidance is 7-9% growth on FY14 operating earnings per security
Slide 18: Further information
Charter Hall Group Further information For personal use only David Harrison David Southon Joint Managing Director Joint Managing Director +61 2 8651 9142 +61 2 8651 9143 david.harrison@charterhall.com.au david.southon@charterhall.com.au Paul Altschwager Nick Kelly Chief Financial Officer Head of Inv
Slide 19: Disclaimer
Charter Hall Group 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
Slide 20: For personal use only
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