Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — FY2018 Earnings Presentation
31 slides from Charter Hall Long Wale Reit's earnings presentation, Aug 10, 2018
Slide 1: Charter Hall Long WALE REIT FY18 Full Year Results
Woolworths Distribution Centre, Dandenong, VIC 10 August 2018 Charter Hall Long WALE REIT FY18 Full Year Results
Slide 2: Agenda
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Agenda 1. FY18 highlights 3 2. Financial performance 6 3. Operational updates & portfolio overview 11 4. FY19 earnings guidance 20 5. Additional information 23 Avi Anger Kerri Leech Ben Ellis Fund Manager Head of Long WALE
Slide 3: FY18 highlights
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 FY18 highlights Woolworths Distribution Centre, Dandenong, VIC
Slide 4: Key highlights
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Key highlights FY18 highlights1 Financial performance Portfolio performance Capital management Operating EPS of 10.8 year WALE 30.6% gearing 26.4 cents 3.9% annual EPS growth2 100% occupancy within target range of 25% – 35
Slide 5: Delivering on strategy
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Delivering on strategy Provide investors with stable and secure income and targeting income and capital growth through an exposure to long WALE properties Grow the portfolio across multiple real estate sectors for diversif
Slide 6: Financial performance
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Financial performance Hyde Park Hotel, West Perth, WA
Slide 7: FY18 results snapshot
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 FY18 results snapshot Key metrics FY18 Statutory profit $83.3m Operating earnings $58.4m Operating earnings per security 26.4 cents Distributions per security 26.4 cents 30 June 2018 30 Jun 2017 Movement NTA per security $
Slide 8: Financial performance
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Financial performance A$m FY18 FY171 % change Increased revenue driven by NPI from Net property income 90.5 52.5 72.4% property acquisitions since IPO: • SUEZ portfolio (Dec 2016) Interest income 0.2 0.2 0.0% • Bunnings So
Slide 9: Balance sheet
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Balance sheet A$m Jun 2018 Jun 2017 Cash 5.5 2.9 $202.3m (17%) asset growth due to: Investment properties 894.3 760.4 • Acquisition of Bunnings South Mackay, Bridge Inn Hotel1 and Virgin Australia Equity accounted investme
Slide 10: Debt & hedging summary
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Debt & hedging summary A$m Look through debt maturity profile (A$m) 500 Debt summary Limit Drawn Maturity 39.9 Balance sheet debt 400 Syndicated debt facility 470.0 430.1 Feb 2022 300 Joint venture debt (CLW interest) 430.
Slide 11: Operational highlights & portfolio overview
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Operational highlights & portfolio overview Woolworths Distribution Centre, Dandenong, VIC
Slide 12: FY18 portfolio highlights
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 FY18 portfolio highlights Capitalised on opportunities to improve the portfolio and secure long term income • CLW undertook a number of transactions during the year, improving the portfolio and increasing its Eastern Seabo
Slide 13: Woolworths Distribution Centre, Dandenong
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Woolworths Distribution Centre, Dandenong Completion of new Woolworths state of the art Victorian distribution centre • In March 2018, the Woolworths Distribution Centre in Dandenong achieved practical completion – 69,217
Slide 14: Portfolio update – post balance date
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Portfolio update – post balance date CLW continues to re-weight its portfolio to core Eastern Seaboard markets • CLW is pleased to provide the following updates, which have occurred since balance date: Disposal of 50% of A
Slide 15: Portfolio snapshot
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Portfolio snapshot Portfolio snapshot Portfolio by sector Jun 2018 Jun 2017 Retail Office Number of properties 81 80 25% 30% Property valuation (A$m) 1,525.2 1,397.2 Weighted Average Capitalisation Rate (“WACR”) 6.13% 6.20
Slide 16: Tenant diversification
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Tenant diversification • CLW’s portfolio comprises a strong and stable tenant base with 16 high quality customers across various industries and business sectors Major tenants1 Woolworths / ALH 28.0% Australia Post 3.2% Aus
Slide 17: Industry diversification
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Industry diversification • Portfolio underpinned by long leases to tenants across diverse business industries • The vast majority of tenant industries are non-discretionary Tenant industries1 Food & liquor 34% Hospitality
Slide 18: Lease expiry profile
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Lease expiry profile Long dated portfolio WALE of 10.8 years1 Current WALE of 10.8 years 24.8% 25.1% 15.3% 10.8% 4.9% 4.1% 3.0% 2.8% 2.7% 2.9% 1.5% 0.7% 1.0% 0.1% 0.3% Vacant FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY
Slide 19: Geographic diversification
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Geographic diversification 81 assets comprising office, industrial and retail properties Highly diversified by geography and real estate sector1 located in six Australian states • Property transactions improve diversificat
Slide 20: FY19 earnings guidance
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 FY19 earnings guidance 40 Tank Street, Brisbane, QLD
Slide 21: FY19 earnings guidance
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 FY19 earnings guidance • Barring any unforeseen events and no material change in current market conditions, CLW’s guidance for FY19 Operating EPS is between 26.4 – 26.6 cents per security subject to re-investment of procee
Slide 22: FY19 EPS bridge
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 FY19 EPS bridge CLW’s forecast FY19 EPS is illustrated below Cents per security FY19 EPS guidance 0.8 26.6 cents 0.2 (2.0) 26.4 cents 0.8 0.4 26.4 26.4 FY18 OEPS FY19 OEPS growth Committed divestments Committed acquisition
Slide 23: Additional information
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Additional information 1. NTA reconciliation 24 2. Property portfolio revaluations 25 3. Portfolio investment portfolio 26 4. Glossary 29 5. Contact information 30 Toll, Altona North, VIC
Slide 24: NTA reconciliation
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 NTA reconciliation NTA per security reconciliation ($A) 0.13 (0.01) 4.05 3.93 1 NTA as at 30 Jun 2017 Property revaluations Other NTA as at 30 June 2018 1. Other movements predominantly include MTM on derivatives and distr
Slide 25: Property portfolio revaluations
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Property portfolio revaluations • FY18 property revaluations resulted in a total gross uplift of $32.2 million, reflecting a 2.2% increase on prior book values • Overall the portfolio WACR firmed 7bps to 6.13% as a result
Slide 26: Property investment portfolio: Office
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Property investment portfolio Office portfolio Asset State REIT interest Valuation1 (A$m) Cap rate2 (%) WALE3 (years) Occupancy3 (%) NLA4 (sqm) WARR5 (%) Westpac Building, Kogarah NSW 50.1% 103.7 5.5% 16.1 100% 31,724 CPI
Slide 27: Property investment portfolio: Industrial
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Property investment portfolio Industrial portfolio REIT Valuation1 WALE3 Occupancy3 WARR5 Asset State Cap rate2 (%) GLA4 (sqm) interest (A$m) (years) (%) (%) Australia Post, Kingsgrove NSW 100% 23.5 5.3% 8.0 100% 6,729 3.5
Slide 28: Property investment portfolio: Retail
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Property investment portfolio Retail portfolio LWIP portfolio1 Other retail Total Number of assets 57 1 58 Property valuation2 (A$m) 374.9 29.0 403.9 WACR3 (%) 5.9 6.0 5.9 WALE4 16.2 years 8.4 years 15.5 years Occupancy4 1
Slide 29: Glossary
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Glossary 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 Capitalisation rate CLW o
Slide 30: Contact information
Charter Hall | Charter Hall Long WALE REIT Full Year Results I 10 August 2018 Contact information 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@charterhall.com.au E: avi.a
Slide 31: Charter Hall office locations
Sydney Charter Head Hall | Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 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 Georges Square 225 St
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