Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY2022 Earnings Presentation
39 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 8, 2022
Slide 1: FY22 Half Year Results
FY22 Half Year Results Charter Hall Long WALE REIT 8 February 2022 Charter Hall Long WALE REIT 2022 Half Year Results
Slide 2: Acknowledgment of Country
Acknowledgment Acknowledgment 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
Avi Anger Fund Manager Agenda 1. Overview and FY22 half year highlights 2. Financial performance Scott Martin 3. Operational update and portfolio overview Head of Finance 4. FY22 guidance 5. Additional information Darryl Chua Deputy Fund Manager Cover (clockwise from top left): (1) Cleanaway & Resou
Slide 4: Overview and FY22 half year highlights
1 Overview and FY22 half year highlights Woolworths Distribution Centre Charter CharterHall HallLong LongWALE WALEREIT REIT Dandenong, VIC 2022 Half Year Results 2021 Full Year Results
Slide 5: Australia's largest diversified long WALE REIT – 5 years since IPO
Overview and FY22 half year highlights Australia’s largest diversified long WALE REIT – 5 years since IPO Strong track record of long-term profitable growth Included in the ASX200 and a top 10 listed AREIT 13.3% compound annual total return on equity since IPO1 3.7% compound annual distribution per
Slide 6: CLW has outperformed relative benchmarks since listing
Overview and FY22 half year highlights CLW has outperformed relative benchmarks since listing1 CLW S&P/ASX 200 (GICS) Property Accumulation Index CLW MSCI/Mercer Australia Core Wholesale Index - Core Funds 13.2%3 11.6% 9.3% 7.4%4 Annual total shareholder return 2 - 5 years to 31 Dec 2021 Annual net
Slide 7: Best in class diversified real estate portfolio
Overview and FY22 half year highlights Best in class diversified real estate portfolio $7 billion portfolio value High quality diversified portfolio Income security 549 52% 79% properties NNN leases Eastern Seaboard 12.2 years portfolio WALE Insulation from market shocks Arnott’s Huntingwood, Sydney
Slide 8: Rental growth from Government, multinational and national blue-chip tenants
Overview and FY22 half year highlights Rental growth generated from Government, multi national and national blue-chip tenants within resilient industries Diversified sector exposure Woolworths Distribution Centre Agri-logistics Dandenong, VIC 4% Social Infrastructure Hospitality 13% 22% Hospitalit…
Slide 9: Attractive distribution yield growth
Overview and FY22 half year highlights Attractive distribution yield growth Track record of 3.7% pa DPS CAGR since IPO delivering growth Market leading platform Provides CLW a competitive advantage to unlock Distributions per security No less than 4.5% growth (cents) value enhancing growth opportuni
Slide 10: FY22 half year highlights
Overview and FY22 half year highlights FY22 half year highlights1 Financial Portfolio Capital performance Performance management Operating EPS of 12.2 year WALE $1.5 billion 15.31 cents per security long term income security of debt facility refinancing and expansions up 5.6% from 1H FY21 completed
Slide 11: Transaction highlights – ALE Property Group
Overview and FY22 half year highlights Transaction highlights Acquisition of a 50% interest in ALE Property Group with Hostplus, one of Australia’s largest industry superannuation funds National portfolio of 78 high quality pub properties, Best in class hospitality operator including 71 with Dan Mur
Slide 12: Financial performance
Charter CharterHall HallLong LongWALE WALEREIT 2022 Half Year Results REIT 2 New Brighton Hotel Sydney, NSW Financial performance 2021 Full Year Results
Slide 13: FY22 half year results snapshot
Financial performance FY22 half year results snapshot Key metrics 1H FY21 1H FY22 Movement Operating earnings $73.6m $97.8m 32.8% Operating earnings per security 14.50 cents 15.31 cents 5.6% Distributions per security 14.50 cents 15.24 cents 5.1% Statutory profit $198.6m $589.6m 196.9% 30 Jun 2021 3
Slide 14: Earnings Summary
Financial performance Earnings Summary – 1H FY22 net property income increased by A$m 1H FY21 1H FY22 % change 31.7% driven by like-for-like rental growth of 3.2% with the balance driven by acquisition Net property income 104.5 137.6 31.7% activity Operating expenses (10.4) (15.4) (47.5%) – Operatin
Slide 15: Balance sheet
Financial performance Balance sheet A$m 30 Jun 2021 31 Dec 2021 – $1.5 billion or 32.2% asset growth due to: – Acquisitions transacted during the year Cash 77.0 105.1 – Net property revaluation uplift of Investment properties 3,092.9 3,641.3 $532 million Equity accounted investments 1,473.4 2,389.8
Slide 16: Capital management
Financial performance Capital management Diversified and well balanced, long term debt maturity profile 200 100 – Balance sheet gearing of 30.8%1 is within the 50 target 25 – 35% range 300 100 – Moody’s Baa1 investment grade issuer rating 100 270 – Completed $1.5 billion of debt initiatives comprisi
Slide 17: Operational update and portfolio overview
3 Operational update and portfolio overview Arnott’s Huntingwood Charter CharterHall HallLong LongWALE WALEREIT REIT Sydney, NSW 2022 Half Year Results 2021 Full Year Results
Slide 18: Additional property investments
Operational update and portfolio overview Additional property investments 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
Slide 19: $7 billion diversified portfolio of high quality real estate
Operational update and portfolio overview $7 billion diversified portfolio of high quality real estate1 Diversified across geography, real estate sector and tenant industries Key metrics Jun 21 Dec 21 Number of properties 468 549 Property valuation (A$m) 5,560 6,980 Weighted Average Capitalisation R
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% 2% 5% 2% 4% 1% 4% 1% 1. Weighted by net passing income as at 31 December 2021, adjusted to include the o
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 12.2 years 15.6% 9.6% 9.8% 8.7% 8.5% 6.7% 5.3% 4.8% 4.5% 4.0% 3.9% 3.5% 3.3% 3.0% 3.1% 1.8% 1.0% 1.3% 0.5% 0.7% 0.1% 0.1% 0.3% Vacant FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY
Slide 23: ESG highlights
Operational update and portfolio overview ESG highlights 100% net 100% renewable Established a $100k partnership to zero carbon electricity by 2025 support families impacted by COVID- Delivering on our ESG Strategy emissions (previous target 2030) 19, feeding 7,500 Australians for a by 20301 week En
Slide 24: FY22 guidance
Charter CharterHall HallLong LongWALE WALEREIT 2022 Half Year Results REIT 4 Coles Distribution Centre Truganina, VIC FY22 guidance 2021 Full Year Results
Slide 25: FY22 guidance
FY22 guidance FY22 guidance The REIT reconfirms that based on information currently available and barring any unforeseen events, CLW provides FY22 Operating EPS guidance of no less than 30.5 cents, reflecting growth of no less than 4.5% over FY21 Operating EPS Guidance of FY22 Operating EPS of no le
Slide 26: Additional information
Charter CharterHall HallLong LongWALE WALEREIT 2022 Half Year Results REIT 5 Additional information Brisbane Bus Network Terminal Eagle Farm Brisbane, QLD 2021 Full Year Results
Slide 27: NTA reconciliation
Additional information NTA reconciliation NTA per security bridge ($ / security) - As at 31 December 2021, the REIT had a NTA per security of $5.89 reflecting an increase of 12.8% from $5.22 as at 30 June 2021 - Movement driven by a net1 property valuation uplift of $532 million during the period, p
Slide 28: 1H FY22 portfolio revaluations
Additional information 1H FY22 portfolio revaluations Long WALE Industrial & Social Agri- - 1H FY22 property revaluations resulted in a net Portfolio valuation (A$m) retail logistics Office infrastructure logistics Total valuation uplift of $532 million over prior book values As at 30 June 2021 1,81
Slide 29: Debt facility summary
Additional information Debt facility summary Gearing ICR Diversified with significant Debt summary (A$m) – 31 Dec 2021 Limit Drawn2 Maturity (covenant) (covenant) covenant headroom Balance sheet debt A$MTN (7, 8.5 and 10 year tranches) 700.0 700.0 Mar-28 to Mar-31 Domestic bank bilateral debt facili
Slide 30: Equity investments with separate property level debt facilities
Additional information Equity investments with separate property level debt facilities Property level debt secured by long leases to investment grade tenants1 Telco Exchanges Portfolio bp Australia Portfolio LWIP Brisbane Bus Terminal 242 Exhibition Street − Portfolio of 36 network critical − Portfo
Slide 31: Geographic and sector diversification
Additional information Geographic and sector diversification1 Geographic diversification Real estate sector diversification Northern Territory New Zealand & Tasmania 21.8 year Australian Capital 3% 1% WALE Territory 4% 13.9 year Agri-logistics WALE 4% 9.7 year WALE South Australia Social Infrastruct
Slide 32: Property investment portfolio – Long WALE retail
Additional information Property investment portfolio Long WALE retail – $2.9 billion1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 GLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Hospitality ALE portfolio (78 properties) Australia wide 50.0% 899.7 4.01% 7.0 100% 226,068 CPI5 LWIP por
Slide 33: 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% 302.6 3.13% 30.0 100% 59,002 CPI + 0.5% National Archives, Chester
Slide 34: Property investment portfolio – Office
Additional information Property investment portfolio Office – $1.3 billion1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 NLA4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) The Glasshouse, Macquarie Park NSW 50.0% 197.5 4.39% 10.0 100% 35,114 3.4% Westpac Building, Kogarah NSW 50.1% 128.
Slide 35: Property investment portfolio – Social infrastructure
Additional information Property investment portfolio Social infrastructure – $901 million1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 Area4 WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) National Telco Exchanges portfolio Australia-wide 24.5% 439.1 3.65% 18.6 100% 347,270 CPI + 0.5% (3
Slide 36: Property investment portfolio – Agri-logistics
Additional information Property investment portfolio Agri-logistics – $302 million1 REIT Valuation1 Cap rate2 WALE3 Occupancy3 Building area WARR3 Asset State Interest (A$m) (A$m) (years) (%) (sqm) (%) Ingham’s portfolio (27 properties) Australia-wide 100.0% 302.3 5.21% 21.8 100% 303,687 2.5%4 Total
Slide 37: 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 38: Further information
Additional information Further information Board of Directors Peeyush Gupta AM Ceinwen Kirk-Lennox Glenn Fraser Carmel Hourigan David Harrison Chair & Non-executive Director Non-Executive Director Non-Executive Director Charter Hall Group Office CEO Charter Hall Managing Director & Group CEO Fund ma
Slide 39: Important Notice & Disclaimer
charterhall.com.au/clw IMPORTANT NOTICE & DISCLAIMER 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) (“Responsible Entity”) as the responsible entity for each
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