Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY2017 Earnings Presentation
28 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 22, 2017
Slide 1: Charter Hall Long WALE REIT FY17 Half Year Results
For personal use only Allenstown Hotel, Rockhampton, QLD Australian Taxation Office, Adelaide, SA Coles Distribution Centre, Perth, WA 22 February 2017 Charter Hall Long WALE REIT FY17 Half Year Results
Slide 2: Agenda
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Agenda For personal use only 1. 1H FY17 highlights 3 2. Financial performance 6 3. Operational performance 10 4. Strategy & FY17 earnings guidance 16 5. Additional information 19 Avi Anger Kerri Leech Ben Ellis Fund Mana
Slide 3: 1H FY17 highlights
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 1H FY17 highlights For personal use only Australian Taxation Office, Adelaide, South Australia
Slide 4: Key highlights
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Key highlights 1H FY171 key highlights For personal use only • Successfully listed on the Australian Stock Exchange (“ASX”) on 8 November 2016 • Largest diversified REIT listing on the ASX IPO completion • $827 million m
Slide 5: Half year results snapshot
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Half year results snapshot For personal use only Key metrics 1H 171 Statutory profit ($2.2m) Operating earnings $7.1m Operating earnings per unit (“EPU”) 3.44 cents Distributions per unit (“DPU”) 3.40 cents Payout ratio
Slide 6: Financial performance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Financial performance For personal use only Hyde Park Hotel, West Perth, WA
Slide 7: Financial performance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Financial performance For personal use only • Operating earnings for the period of $7.1 million Summary income statement – NPI underpinned by 100% occupied diversified portfolio A$m 1H 17 – Overall earnings ahead of dist
Slide 8: Balance sheet
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Balance sheet For personal use only • Balance sheet gearing remaining within 25% to 35% target range Summary balance sheet post SUEZ acquisition A$m At listing1 Dec 2016 Unrestricted cash 5.0 14.1 Investment properties 6
Slide 9: Capital management
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Capital management For personal use only • During the period, Management completed the following Look through debt maturity profile1 (A$m) initiatives: – Inclusion of a second Australian domestic bank in the 500.0 REIT’s
Slide 10: Operational performance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Operational performance For personal use only Coles Distribution Centre, Perth, WA
Slide 11: Portfolio snapshot & overview
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Portfolio snapshot & overview For personal use only Portfolio snapshot Breakdown of portfolio by asset class Long WALE REIT At listing Dec 2016 Office Retail Number of Properties 66 76 24% 27% Property valuation (A$m) 1,
Slide 12: Portfolio profile
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Portfolio profile For personal use only • Diversified tenant base with 14 high quality tenants across various industries and business sectors • 81%1 are investment grade with an investment grade credit rating Major tenan
Slide 13: Portfolio profile
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Portfolio profile For personal use only • Long dated portfolio WALE of 12.2 years as at 31 December 2016 • First major expiry is 4 years away in FY21 • Only 5.4% of income due for expiry within the next 5 years • 67.3% o
Slide 14: Property transactions
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Property transactions Acquisition of a stabilised industrial portfolio delivering long term, growing and secure income For personal use only • Successfully acquired in late December 2016 – $65.9 million purchase price, r
Slide 15: Revaluations
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Revaluations 54 properties representing 24% of the portfolio revalued For personal use only • CLW’s retail portfolio (LWIP) was revalued, 33 assets externally valued and the remaining 21 assets subject to Directors’ valu
Slide 16: Strategy & FY17 earnings guidance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Strategy & FY17 earnings guidance For personal use only Australian Taxation Office, Adelaide, SA
Slide 17: CLW strategy
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 CLW strategy For personal use only Investment strategy Provide investors with stable and secure income and the potential for both income and capital growth through an exposure to long WALE properties Stable and secure in
Slide 18: FY17 earnings guidance
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 FY17 earnings guidance For personal use only • CLW’s FY17 operating EPU guidance provided in the PDS was 16.0 cents1 • Post the successful acquisition of the SUEZ portfolio, the REIT is raising its operating EPU forecast
Slide 19: Additional information
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Additional information For personal use only 1. NTA reconciliation 20 2. Debt facility & hedging summary 21 3. Portfolio investment portfolio 22 4. Lease expiry profiles 25 5. Glossary 26 6. Contact information 27 Allens
Slide 20: NTA reconciliation
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 NTA reconciliation For personal use only NTA per unit reconciliation ($A) $0.04 ($0.02 ) $0.01 $3.88 $0.03 ($0.03 ) $0.01 $3.84 NTA as per PDS Operating earnings Provision for distribution Revaluations SUEZ acquisition c
Slide 21: Debt & hedging summary
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Debt & hedging summary Debt summary, hedging & key metrics For personal use only x As at 31 Dec 2016 Post 31 Dec 20161 A$m Debt summary Limit Drawn Maturity Limit Drawn Maturity Balance sheet debt Syndicated debt facilit
Slide 22: Property investment portfolio: Office
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Property investment portfolio Office portfolio For personal use only Asset State REIT interest Valuation1 (A$m) Cap rate2 (%) WALE3 (years) Occupancy3 (%) NLA4 (sqm) WARR5 (%) Westpac Building, Kogarah NSW 50.1% 93.7 6.0
Slide 23: Property investment portfolio: Industrial
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Property investment portfolio Industrial portfolio For personal use only REIT Valuation2 WALE4 Occupancy4 WARR6 Asset State Cap rate3 (%) GLA5 (sqm) interest (A$m) (years) (%) (%) Australia Post, Kingsgrove NSW 100% 20.7
Slide 24: Property investment portfolio: Retail
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Property investment portfolio Retail portfolio For personal use only Retail portfolio Dec 2016 Number of assets 54 Long WALE REIT interest 45% Valuation1 (A$m) 314.4 Weighted average capitalisation rate2 6.06 WALE3 17.8
Slide 25: Lease expiry profiles
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Lease expiry profiles1 Industrial portfolio For personal use only 16.2% Attributable to SUEZ portfolio 9.3% 4.3% 4.7% 4.6% 3.2% 3.5% 2.3% 0.7% 1.3% 1.0% 0.2% Vacant FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Slide 26: Glossary
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 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 27: Contact information
Charter Hall | Charter Hall Long WALE REIT Half Year Results I 22 February 2017 Contact information For personal use only Avi Anger Kerri Leech Fund Manager Head of Long WALE REIT and Industrial Finance Charter Hall Long WALE REIT Charter Hall Long WALE REIT T: +61 2 8651 9111 T: +61 2 8651 9347 E:
Slide 28: For personal use only
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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