Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY2018 Earnings Presentation
29 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 15, 2018
Slide 1: Charter Hall Long WALE REIT FY18 Half Year Results
For personal use only Electrolux, Beverley, South Australia Virgin Australia Head Office, Bowen Hills, Queensland Bunnings, South Mackay, Queensland 15 February 2018 Charter Hall Long WALE REIT FY18 Half Year Results
Slide 2: Agenda
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Agenda For personal use only 1. FY18 half year highlights 3 2. Financial performance 5 3. Operational updates & portfolio overview 10 4. FY18 earnings guidance 18 5. Additional information 20 Avi Anger Kerri Leech Ben El
Slide 3: FY18 half year highlights
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 FY18 half year highlights For personal use only Virgin Australia Head Office, Bowen Hills, QLD
Slide 4: Key highlights
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Key highlights 1H FY18 highlights1 For personal use only Financial performance Portfolio performance Capital management Operating EPS of 11.3 year WALE 28.6% gearing2 13.0 cents 1.8% above PDS 1H FY18 EPS forecast 100% o
Slide 5: Financial performance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Financial performance For personal use only Coles Distribution Centre, Perth, WA
Slide 6: 1H FY18 results snapshot
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 1H FY18 results snapshot For personal use only Key metrics 1H FY18 Statutory profit $45.9m Operating earnings $27.3m Operating earnings per security 13.0 cents Distributions per security 13.7 cents 31 Dec 2017 30 Jun 201
Slide 7: Financial performance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Financial performance For personal use only A$m 1H FY18 PDS % change Increased revenue driven by NPI from property acquisitions since IPO Net property income 42.9 39.8 7.8% • SUEZ portfolio • Bunnings South Mackay Intere
Slide 8: Balance sheet
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Balance sheet For personal use only A$m Dec 2017 Jun 2017 12.1% asset growth over the half year Cash 94.8 2.9 period Investment properties 798.4 760.4 • Proceeds from December 2017 Equity accounted investments 420.1 402.
Slide 9: Debt & hedging summary
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Debt & hedging summary For personal use only A$m Look through debt maturity profile (A$m) 500 Debt summary Limit Drawn Maturity Balance sheet debt 85.5 400 Syndicated debt facility 470.0 384.5 Feb 2022 300 Joint venture
Slide 10: Operational updates & portfolio overview
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Operational updates & portfolio overview For personal use only Norwood Hotel, Norwood, SA
Slide 11: Office acquisition
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Virgin Australia Head Office acquisition Improves portfolio diversification, eastern seaboard exposure and increases office exposure For personal use only • In December 2017, CLW agreed to acquire the head office of Virg
Slide 12: Portfolio update
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Portfolio update CLW continues to develop its close tenant relationships to explore future potential leasing opportunities For personal use only • Management is pleased to provide the following updates on CLW’s portfolio
Slide 13: Portfolio snapshot
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Portfolio snapshot For personal use only Portfolio snapshot Portfolio by sector Dec 20171 Jun 2017 Retail Number of properties 81 80 24% Office 31% Property valuation (A$m) 1,515.5 1,397.2 Weighted Average Capitalisation
Slide 14: Tenant diversification
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Tenant diversification For personal use only • CLW is pleased to include Virgin Australia amongst its tenants, through the acquisition of the Virgin Australia Head Office • Further diversifies the REIT’s tenant base with
Slide 15: Industry diversification
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Industry diversification For personal use only • Portfolio underpinned by long leases to tenants across diverse business industries • The vast majority of tenant industries are non-discretionary Tenant industries1 Food &
Slide 16: Lease expiry profile
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Lease expiry profile Long dated portfolio WALE of 11.3 years1 For personal use only • First major expiry remains approximately 3 years away in FY21 • Electrolux lease extension increases the portfolio WALE Current WALE o
Slide 17: Geographic diversification
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Geographic diversification 81 assets comprising office, industrial and retail properties Highly diversified by geography and real estate sector1 For personal use only located in six Australian states • Property acquisiti
Slide 18: FY18 earnings guidance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 FY18 earnings guidance For personal use only Metcash Distribution Centre, Canning Vale, WA
Slide 19: FY18 earnings guidance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 FY18 earnings guidance For personal use only • CLW’s FY18 Operating EPS guidance is 26.4 cents per security • The REIT confirms that barring any unforeseen events and no material change in current market conditions, CLW’
Slide 20: Additional information
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Additional information For personal use only 1. NTA reconciliation 21 2. Pro-forma balance sheet 22 3. Portfolio revaluations 23 4. Portfolio investment portfolio 24 5. Glossary 27 6. Contact information 28 Toll, Altona
Slide 21: NTA reconciliation
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 NTA reconciliation For personal use only NTA per security reconciliation ($A) $0.13 ($0.14) $0.10 ($0.01) $4.02 $3.93 1 NTA as at 30 Jun 2017 Operating earnings Provision for distribution Property revaluations Derivative
Slide 22: Pro-forma balance sheet
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Pro-forma balance sheet For personal use only • Cash proceeds from the December 2017 entitlement offer were received prior to 31 December 2017 balance date and were utilised to fund the Virgin Australia Head Office acqui
Slide 23: Portfolio revaluations
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Portfolio revaluations For personal use only • Property revaluations during 1H FY18 resulted in a total gross uplift of $21.0 million, reflecting a 1.5% increase on prior book values (excludes properties acquired and div
Slide 24: Property investment portfolio: Office
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Property investment portfolio Office portfolio1 For personal use only Asset State REIT interest Valuation2 (A$m) Cap rate3 (%) WALE4 (years) Occupancy4 (%) NLA5 (sqm) WARR6 (%) Westpac Building, Kogarah NSW 50.1% 102.0 5
Slide 25: Property investment portfolio: Industrial
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Property investment portfolio Industrial portfolio For personal use only REIT Valuation1 WALE3 Occupancy3 WARR5 Asset State Cap rate2 (%) GLA4 (sqm) interest (A$m) (years) (%) (%) Australia Post, Kingsgrove NSW 100% 23.4
Slide 26: Property investment portfolio: Retail
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Property investment portfolio Retail portfolio For personal use only LWIP portfolio1 Other retail Total Number of assets 57 1 58 Property valuation2 (A$m) 345.1 29.0 374.1 WACR3 (%) 5.9 6.0 5.9 WALE4 16.6 years 8.9 years
Slide 27: Glossary
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Glossary For personal use only ASX Australian Stock Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash Cap rate C
Slide 28: Contact information
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 15 February 2018 Contact information For personal use only Avi Anger Kerri Leech Fund Manager Head of Long WALE REIT Finance Charter Hall Long WALE REIT Charter Hall Long WALE REIT T: +61 2 8651 9347 T: +61 2 8651 9111 E: kerri.leech@cha
Slide 29: Charter Hall office addresses
Sydney Charter Head Hall | Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 12, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 4000 T: +61 7 3228 2000 Perth Level 5, St
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