Charter Hall Group · ASX:CHC
Charter Hall — FY2006 Earnings Presentation
33 slides from Charter Hall's earnings presentation, Aug 24, 2006
Slide 1: Charter Hall, 24 August 2006
CHARTER HALL. 24 AUGUST 2006
Slide 2: Contents
CONTENTS v YEAR IN REVIEW v¥ PROPERTY TRUST UPDATE v FUNDS UPDATE v FINANCIALS CHARTER HALL GROUP £11.
Slide 3: Year in Review
YEAR IN REVIEW ¥ Outperformed: FY 06 DPS 7.10c vs 6.56c forecast at IPO (up 8.2%) v 3 funds launched successfully ¥ $787m of equity & equity commitments raised ¥ 10 investment assets acquired v¥ Adevelopment projects secured ¥ 3development projects crystallised profits ¥ 35+ leases comprising over 7
Slide 4: Year in Review: Key Events Since IPO
YEAR IN REVIEW : KEY EVENTS SINCE IPO $500 million of equity commitivents taised : POPS. JBL Pile Stipe) Acclalle completed EO] undenvey CBD, Office tower, Melbourne Almont Business Park VIC __CHPT 823 ty DUKY la) apse Neoean Hy, Mentone Vi APR 2006 CHARTER HALL GROUP
Slide 5: Year in Review: Key Events Since IPO (Continued)
YEAR IN REVIEW : KEY EVENTS SINCE IPO (Continued) Core Plus Office Fund Diversified Property Fund bee Wholesale fund launched with 91 $4.7 office asset acquired - Brisbane CBD Anetcan Dipess ore te: 1005 seed asset ing . office pulding Atrum (Uni : _-olversitied Property Fund a ite DPF al Coto VIC,
Slide 6: Year in Review: Financial Performance
YEAR IN REVIEW : FINANCIAL PERFORMANCE $16.76m $543m $270m (As at 22 Aug) (IPO Pro Forma) 14% 26% (As at 3 July) (IPO Pro Forma} CHARTER HALL GROUP #02.
Slide 7: Year in Review: Security Price Jun - Jun
YEAR IN REVIEW : SECURITY PRICE 10 JUN 05 - 30 JUN 06 10 Jun. 05. Listing Price (18 instalment) °0.75 ant (1st instalment) $1.07 (it ietanven F100 Total return pe .. (15 instalment) CHARTER HALL GROUP #u Core Plus Office Fund 1°! Close $1.20 Northbank Plaza Project secured t 1 $1.18 Core Plus Office
Slide 8: Year in Review: Security Price Jun - Aug
YEAR IN REVIEW : SECURITY PRICE 15 JUN 06 — 22 AUG 06 15 Jun 06 2 “$1.27 $1.55 aos an ~~ Charter Hall Entitlement Offer Price ~ : : Group a — $4.50 22 Aug 06 ; mod Closing Price $1.52 sias “ASX LPT 300 senses Te Price Growth since. - 5 Entitlement Offer 19.6% $1.35 22 Aug Vie : $543m a 98: 13.4108 :
Slide 9: Year in Review: Equity Raising
YEAR IN REVIEW : EQUITY RAISING ¥ The Group has created new products for wholesale and retail markets Y Having raised both on and off balance sheet equity since IPO, the Group has accumulated significant acquisition capacity vy CORE PLUS OFFICE FUND (CPOF) $500m’ 27% vy CHARTER HALL OPPORTUNITY FUND
Slide 10: Year in Review: Product Spectrum
YEAR IN REVIEW : PRODUCT SPECTRUM ¥ The Group now offers products covering entire risk/return spectrum targeting all investor market segments OPPORTUNISTIC ENHANCED CORE PLUS i. FUNDS DPF, CHPT, CHIF 1-6 CPOF POP 2,3 UV with AMP) CHARTER HALL GROUP
Slide 11: Year in Review: Assets Under Management
YEAR IN REVIEW : ASSETS UNDER MANAGEMENT ¥ $1.35 Billion Current AUM ($2.1 Billion once CPOF fully invested) 2500 2000 1500 1000 500 vl caf” toon SP option gy in 1998 1999 2000 2004 2002 2003 2004 2005 2006 ti CPOF Remaining Capacity Core Investment Assets. «x Opportunistic Assets (completion value}
Slide 12: Charter Hall
CHARTER HALL
Slide 13: Property Trust (CHPT)
PROPERTY TRUST (CHPT) ¥ $327m CHPT offers attractive asset diversification ent CPOF DPF 5 40 4.5% me ma \\ 74% Chullora 25 Nepean et Hwy 68% — Mentone 119% 16.3% Nunawading 21.0% ASSET DIVERSIFICATION by Acquisition Price Industrial 12.4% Commercial 28.7% Retail / Bulky Goods Retail 58.9% SECTOR WEI
Slide 14: Property Trust (CHPT)
PROPERTY TRUST (CHPT) LEASE EXPIRY PROFILE BY NET INCOME 50% 40% 30% 20% 10% | 0% am [ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 @Lease ExpiryProfile @Wilson Parking [! Nunawading & Mentone represent uncommitted tenancies OPF eee 54 CPOF (ieeeeeeeeermeees 120 Ha
Slide 15: Property Trust (CHPT)
PROPERTY TRUST (CHPT) HOME HQ, NUNAWADING VIC v v CHARTER HALL GROUP #1 Completion date 20 October 2006 Leasing progressing well - 72% leases signed or under HoA and 28% in advanced negotiations Secured tenants include Nick Scali, Bev Marks, Casual Living, The Good Guys, JB HiFi, Howard's Storage, a
Slide 16: Property Trust (CHPT) Bourke Street, Melbourne
PROPERTY TRUST (CHPT) 570 BOURKE STREET, MELBOURNE ¥ Willis Australia signed lease over levels 3, 4 & 5, Victorian Government signed lease over level 20 and ANZ renewed lease over 1,130sqm ¥ Occupancy level 100% CHARTER HALL GROU! 400 KENT STREET, SYDNEY ¥ Fitout works by Central QLD University comp
Slide 17: Property Trust (CHPT) Mentone and Melbourne Airport Business Park
PROPERTY TRUST (CHPT) 25 NEPEAN HWY, MENTONE VIC MELBOURNE AIRPORT BUSINESS PARK TULLAMARINE VIC ¥ Acquired using the Entitlement Offer proceeds ¥ Acquired using the Entitlement Offer proceeds ¥ A-Mart All Sports 8 year lease signed ¥ Progress payments on schedule ¥ Anticipated completion date Dec 2
Slide 18: Charter Hall
CHARTER HALL
Slide 19: Core Plus Office Fund (CPOF)
CORE PLUS OFFICE FUND (CPOF) v v v v $500m of equity commitments raised from wholesale investors Open ended fund investing in passive (70%) and enhanced (30%) office assets throughout Australia 27.1% of capital already allocated in 3 assets in Sydney and Perth CHG earns annual fund management fee of
Slide 20: Core Plus Office Fund (CPOF)
CORE PLUS OFFICE FUND (CPOF) Atrium, Pyrmont ¥ $137m, 20,000sqm A-grade office building v Pre-leased to AMEX (12yrs) and Coles Supermarket (20yrs) 333 George St, Sydney ¥ $69m, 9,882sqm B-grade office building, substantially refurbished in 2003/2004. Average gross passing rent of $400/sqm ¥ Prime lo
Slide 21: Diversified Property Fund (DPF)
DIVERSIFIED PROPERTY FUND (DPF) ¥ Launched in September 2005 v Current AUM $48m comprising 5 assets in 4 states, NSW, QLD, WA and VIC v Targeting asset size in $5m to $30m price bracket ¥ Open-ended fund with strong potential for growth ¥ Listed on Macquarie and BT Wrap platforms v CHG receives acqu
Slide 22: Diversified Property Fund (DPF)
DIVERSIFIED PROPERTY FUND (DPF) v Good asset diversification and quality tenant composition Si Georges Tce Perth CBD Mulgrave 30.5% Melb Metro 14.9% St Pauls Toe Brisbane Fringe Kent St 9.8% Sydney CBD oy Geelong 247 23.2% ASSET DIVERSIFICATION by Acquisition Price St Georges Tce, Perth CBD Kent St,
Slide 23: CHOF
CHOF 4 v v CHARTER HALL GROUP £11. Launched in July 2005 after being significantly oversubscribed Raised $165m of equity - largest opportunity fund in Australia at time of close Capacity for over $500m of project end value (up to $1 Billion with JV) 3 projects underway while 420 George St in Brisban
Slide 24: CHOF Project 1: Northbank Plaza, Brisbane
CHOF 4 PROJECT 1: NORTHBANK PLAZA, BRISBANE QLD CHARTER HALL GROUP * v v Refurbishment of existing 26,000sqm office building 50/50 JV with a local development group Completion Value $134m Completion Date late 2007 24
Slide 25: CHOF Project 2: George Street, Brisbane
CHOF 4 PROJECT 2: 275 GEORGE STREET, BRISBANE QLD ¥ DA lodged for 41,600sqm A-grade office tower with retail and parking components v¥ 50/50 JV with a local development group v¥ The building targets 4.5 star Australian Building Greenhouse Rating ¥ Completion Value $320m CHARTER HALL GROUP * 5
Slide 26: CHOF Project 3: Mounts Bay Road, Perth
CHOF 4 PROJECT 3: MOUNTS BAY ROAD, PERTH WA ¥ DA lodged for 21,000sqm A-grade CBD office building ¥ 50/50 JV with local development group Cape Bouvard ¥ CHOF 4 will oversee development process while Cape Bouvard will be responsible for project management ¥ Completion Value $160m CHARTER HALL GROUP #
Slide 27: PDP Funds
PDP FUNDS SYDNEY WHARF, PYRMONT BAY (PDP 3) ¥ 104 luxury harbour apartments and 54 marina berths, currently 65% pre-sold ¥ — Construction underway and due for completion in late 2008 ¥ — Completion Value $300m, Completion Date mid 2008 151 PIRIE STREET, ADELAIDE (PDP 3) v A-gtade, 4.5 star ABGR offi
Slide 28: PDP Funds
PDP FUNDS v Performance fees forecast in Prospectus/PDS for FY06 have been achieved (75% of Atrium fee recognised in Jan 06, 25% in FY07) v PDP 2: Atrium Pyrmont sold to CPOF for $139.2m v PDP 2: Bourke Street Alexandria sold to Daimler-Chrysler ¥ Performance Fee outlook for FY 07 is robust * 60/50
Slide 29: Charter Hall
CHARTER HALL
Slide 30: Financials: Income Statement
FINANCIALS INCOME STATEMENT Notes (0003) 12 months to 36 Jun 06 Net Rental Income 14,995 Income guarantee on rental income 4,069 Management fee income 12,386 Interest income 4 1,533 Other income 2 5,186 Total income 32,169 Operating expenses (8,128) Financing costs (5,896) Total expenses (15,025} Ne
Slide 31: Financials: Consolidated Balance Sheet
FINANCIALS Consolidated Balance Sheet Notes {608s) As at 30 Jun 06 Current assets 4 204,019 Non current assets 301,039 Total assets 505,058 Current llabilities 2 84,502 Non current liabilities 141,086 Total liabilities 225,588 Equity 279,470 Property investments 3 284,788 Borrowings 140,119 Gearing
Slide 32: Wrap Up
WRAP UP Y Business model producing enhanced return on equity v Access to different sources of equity driving growth v Performance across all funds increasing traction for equity raising Y Positive outlook for new product creation CHARTER HALL GROUP FU22. 424 32
Slide 33: Structure
CHARTER HALL GROUP STRUCTURE Board of Directors CHARTER HALL PROPERTY TRUST CHARTER HALL LIMITED Stapled & Managed via Responsible Entity Charter Hall Funds Management Limited doint CEO. David Southon Joint CEO David Harrison < PROPERTY Property ; Property FUNDS investment ! : Management MANAGEMENT