Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — FY2022 Earnings Presentation
36 slides from Charter Hall Long Wale Reit's earnings presentation, Aug 9, 2022
Slide 1: CLW 2022 Full Year Results
CLW 2022 FULL YEAR RESULTS Charter Hall Charter Hall Long WALE REIT 2022 FullLong WALE REIT Year Results
Slide 2: Acknowledgement of Country
Acknowledgment Acknowledgement of Country of Country Charter Hall is proud to work with our Charter Hall customers andis communities proud to worktowith ourin invest customers and and communities create places to invest in on lands across and create Australia. Weplaces pay ouronrespects lands across
Slide 3: Agenda
Agenda 1. Overview and FY22 full year highlights 2. Financial performance 3. Operational update and portfolio overview 4. FY23 guidance 5. Additional information Cover: Coles Distribution Centre, Truganina VIC Left: Woolworths Distribution Centre, Dandenong VIC Charter CharterHall HallLong LongWALE
Slide 4: Overview and FY22 full year highlights
1 Overview and FY22 full year highlights New Brighton Hotel Charter CharterHall HallLong LongWALE WALEREIT REIT Sydney, NSW 2022 Full Year Results 2021 Full Year Results
Slide 5: Best in class diversified real estate portfolio
Overview and FY22 full year highlights Best in class diversified real estate portfolio $7.1 billion portfolio value High quality diversified portfolio 549 52% 80% Long WALE 12.0 years properties NNN Eastern leases Seaboard provides portfolio income security The Glasshouse, Sydney NSW Charter Hall Lo
Slide 6: 6.4% distribution yield generated from blue-chip tenants in resilient industries
Overview and FY22 full year highlights 6.4% distribution yield1 generated from blue-chip tenants in resilient industries Diversified sector exposure2 bp Caringbah Agri-logistics Sydney, NSW 4% Social Infrastructure Hospitality 13% 22% Hospitalit… Blue-chip tenants Income growth driven by annual rent
Slide 7: FY22 full year highlights
Overview and FY22 full year highlights FY22 full year highlights1 Financial Portfolio Capital performance Performance management Operating EPS of 12.0 year WALE3 $1.7 billion 30.5 cents per security long term income security of debt facility refinancing and expansions up 4.5% from FY21 completed $6.
Slide 8: CLW ESG leadership
Overview and FY22 full year highlights CLW ESG leadership Achievements in FY22 Partnering with tenant and investor customers to deliver meaningful change $466m 1 in sustainable finance 50% reduction in emissions 2 Partnering on renewables Climate action 242 Exhibition Street, Melbourne, CLW achieved
Slide 9: Charter Hall ESG leadership
Overview and FY22 full year highlights Charter Hall ESG leadership Achievements in FY22 Partnering with tenant and investor customers to deliver meaningful change Health and Wellbeing Employer of Choice Engagement Strong communities Winner of HR Awards 2021 Awarded the WGEA Employer of Global high p
Slide 10: Financial performance
Charter CharterHall HallLong LongWALE WALEREIT 2022 Full Year Results REIT 2 Toyota Material Handling Larapinta, QLD Financial performance 2021 Full Year Results
Slide 11: FY22 full year results snapshot
Financial performance FY22 full year results snapshot Key metrics FY21 FY22 Movement Operating earnings $159.0m $207.2m 30.3% Operating earnings per security 29.2 cents 30.5 cents 4.5% Distributions per security 29.2 cents 30.5 cents 4.5% Statutory profit $618.3m $911.9m 47.5% 30 Jun 2021 30 Jun 202
Slide 12: Earnings summary
Financial performance Earnings summary - FY22 net property income increased by 32.4% A$m FY21 FY22 % change driven by like-for-like rental growth of 3.4% with the balance driven by acquisition activity Net property income 221.7 293.5 32.4% - Operating expenses increases attributable to Operating exp
Slide 13: Balance sheet
Financial performance Balance sheet A$m 30 Jun 2021 30 Jun 2022 - $1.8 billion or 38.3% asset growth due to: - Acquisitions transacted during the year Cash 77.0 19.0 - Net property valuation uplift of $670 million Investment properties 3,092.9 3,722.1 - NTA per security of $6.17 per security reflect
Slide 14: Capital management
Financial performance Capital management Diversified and well balanced, long term debt maturity profile – A$m 200 - Balance sheet gearing of 29.9% is within the 50 100 target 25 – 35% range 300 - Moody’s Baa1 investment grade issuer rating 100 100 300 - Completed $1.7 billion of debt initiatives 270
Slide 15: Operational update and portfolio overview
3 Operational update and portfolio overview Metcash Distribution Centre Charter CharterHall HallLong LongWALE WALEREIT REIT Perth, NSW 2022 Full Year Results 2021 Full Year Results
Slide 16: Portfolio leasing highlights
Operational update and portfolio overview Portfolio leasing highlights Long-term lease extension secured with Metcash Metcash Distribution Centre, Canning Vale, Perth WA − CLW has executed a long-term lease extension with Metcash at its Canning Vale Distribution Centre in Perth, WA − 10 year lease e
Slide 17: Acquisition of a 50% interest in ALE Property Group
Operational update and portfolio overview Investment highlights Acquisition of a 50% interest in ALE Property Group in partnership with Hostplus Long WALE Retail $814 million National portfolio of 78 high quality pub properties, including 71 with Dan Murphy’s or BWS stores − 99% in metropolitan loca
Slide 18: Investment highlights (cont.)
Operational update and portfolio overview Investment highlights (cont.) Acquisition of three modern industrial and logistics facilities Industrial & logistics $88 million Cleanaway & ResourceCo Facility, Sydney NSW Modern Star Distribution Centre, Brisbane QLD Toyota Distribution Centre, Brisbane QL
Slide 19: $7.1 billion diversified portfolio of high quality real estate
Operational update and portfolio overview $7.1 billion diversified portfolio of high quality real estate Diversified across geography, real estate sector and tenant industries Key metrics Jun 21 Jun 22 Number of properties 468 549 Property valuation (A$m) 5,560 7,127 Weighted Average Capitalisation
Slide 20: Best in class tenant register
Operational update and portfolio overview Best in class tenant register Strong and stable tenant base of government, ASX-listed and multinational companies Major tenants1 18% 4% 18% 3% 13% 3% 10% 3% 5% 2% 4% 2% 4% 1% 1. Weighted by net passing income as at 30 June 2022 Charter Hall Long WALE REIT 20
Slide 21: Focus on key defensive tenant industries
Operational update and portfolio overview Focus on key defensive tenant industries1 Defensive and resilient to economic shocks Pubs and bottle shops (19%) Government (18%) Telecommunications (13%) Grocery & distribution (12%) Federal Hotel, Toowoomba Australian Tax Office, Adelaide 242 Exhibition St
Slide 22: Long portfolio WALE
Operational update and portfolio overview Long portfolio WALE1 Long term income security 12.0 years 15.4% 9.9% 9.4% 8.6% 8.0% 6.8% 5.5% 4.9% 4.8% 3.9% 3.7% 3.8% 3.4% 3.1% 3.0% 1.8% 1.2% 0.5% 0.8% 0.5% 0.5% 0.3% 0.1% Vacant FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY
Slide 23: FY23 guidance
Charter CharterHall HallLong LongWALE WALEREIT 2022 Full Year Results REIT 4 Sydney, NSW FY23 guidance ResourceCo / Cleanaway Waste-to-Energy Facility 2021 Full Year Results
Slide 24: FY23 guidance
FY23 guidance FY23 guidance1 Based on information currently available and barring any unforeseen events, CLW provides FY23 Operating EPS guidance of 28.0 cents and DPS guidance of 28.0 cents. Guidance of FY23 Operating EPS and DPS of 28.0 cents, reflecting a distribution yield2 of 6.4% Crow’s Nest H
Slide 25: Additional information
Charter CharterHall HallLong LongWALE WALEREIT 2022 Full Year Results REIT 5 Australian Red Cross Sydney, NSW Additional information 2021 Full Year Results
Slide 26: NTA reconciliation
Additional information NTA reconciliation NTA per security bridge ($ / security) - As at 30 June 2022, the REIT had a NTA per security of $6.17 reflecting an increase of 18.2% from $5.22 as at 30 June 2021 $0.02 - Movement primarily driven by a net1 property $6.17 valuation uplift of $670 million du
Slide 27: FY22 portfolio revaluations
Additional information FY22 portfolio revaluations Long WALE Industrial & Social- Agri- - FY22 property valuations resulted in a net Portfolio valuation (A$m) retail logistics Office infra logistics Total valuation uplift of $670 million over prior book values As at 30 June 2021 1,812 1,249 1,364 83
Slide 28: Debt facility summary
Additional information Debt facility summary Gearing ICR Debt summary (A$m) – 30 Jun 2022 Limit Drawn2 Maturity (covenant) (covenant) Balance sheet debt A$MTN (7, 8.5 and 10 year tranches) 700.0 700.0 Mar-28 to Mar-31 - $3.1 billion1 of look through debt facilities across Domestic bank bilateral deb
Slide 29: Geographic and sector diversification
Additional information Geographic and sector diversification1 Geographic diversification Real estate sector diversification Northern Territory New Zealand & Tasmania 21.3 year Australian Capital 3% 1% WALE Territory 4% 13.4 year Agri-logistics WALE 4% 9.2 year WALE South Australia Social Infrastruct
Slide 30: Property investment portfolio: Long WALE retail
Additional information Property investment portfolio Long WALE retail – $3.0 billion1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 GLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Hospitality ALE portfolio (78 properties) Australia wide 50.0% 913.6 4.01% 6.5 100% 228,707 CPI5 LWIP por
Slide 31: Property investment portfolio: Industrial & logistics
Additional information Property investment portfolio Industrial & logistics – $1.5 billion1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 GLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Arnott’s, Huntingwood NSW 50.0% 314.5 3.00% 29.5 100% 52,908 CPI + 0.5% National Archives, Chester
Slide 32: Property investment portfolio: Office
Additional information Property investment portfolio Office – $1.4 billion1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 NLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) The Glasshouse, Macquarie Park NSW 50.0% 199.0 4.38% 9.5 100% 35,114 3.4% Westpac Building, Kogarah NSW 50.1% 133.8
Slide 33: Property investment portfolio: Social infrastructure
Additional information Property investment portfolio Social infrastructure – $938 million1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 Area4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Telco Exchanges portfolio (36 properties) Australia-wide 24.5% 465.7 3.65% 18.1 100% 347,270 CPI +
Slide 34: Property investment portfolio: Agri-logistics
Additional information Property investment portfolio Agri-logistics – $314 million1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 Building area WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Ingham’s portfolio (27 properties) Australia-wide 100.0% 313.7 5.21% 21.3 100% 303,687 2.5%4 Total
Slide 35: Glossary
Additional information Glossary ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash CAGR Compound annual growth rate CLW or the REIT Charter Hall Long WALE REIT DPS Dis
Slide 36: Further information
Further information Investor Relations Tel 1300 365 585 (within Australia) +61 2 8651 9000 (outside Australia) Email reits@charterhall.com.au Presentation authorised by the Board charterhall.com.au/clw IMPORTANT NOTICE & DISCLAIMER This presentation ("Presentation") has been prepared by and is the s
Charter Hall Long WALE REIT — FY2022 Earnings Presentation on 6ix