Charter Hall Retail Reit · ASX:CQR
Charter Hall Retail Reit — Shareholder Meeting (November 2016)
36 slides from Charter Hall Retail Reit's shareholder meeting presentation, Nov 11, 2016
Slide 1: Annual General Meeting 2016 – Chairman & Fund Manager's address
Charter Hall Retail REIT Annual General Meeting 2016 – Chairman & Fund Manager’s address Charter Hall Retail REIT 2016 Annual General Meeting Chairman’s Address Good morning. On behalf of the Board of Directors, it is my pleasure to welcome you all to the 2016 Annual General Meeting of Charter Hall
Slide 2: Agenda and Board of Directors
CQR Fund Manager, Scott Dundas will then provide an update on our business and key results as well as provide an outlook for financial year 2017. We will then move to the formal business of the meeting and the resolutions for your consideration. Unitholders holding a yellow or red attendance card wi
Slide 3: Our strategy
Also present today and I welcome: CQR Fund Manager, Scott Dundas Mark Bryant, our Company Secretary Christine Kelly our Head of Retail Finance Jayne Reilly, from our Auditor PricewaterhouseCoopers, who will be available to answer any questions about their audit of the financial statements fr
Slide 4: Solid earnings and distribution growth
Solid earnings and distribution growth I am pleased to report the REIT delivered another solid financial result during the 2016 financial year, reporting operating earnings growth of 2.4% to $120.3 million or 30.4 cents per unit, statutory profit up 11.2% to $180.7 million and an increase in the por
Slide 5: Fund Manager's Address
Over the last few years, a program to effect Board renewal of independent directors has been undertaken by the Responsible Entity of Charter Hall Retail REIT. In November 2015, Sue Palmer joined the Board and long serving Director Maurice Koop retired from the Board in April 2016 after an overlappin
Slide 6: FY16 key highlights
The key highlights summarised on this slide, show that FY16 was another successful year for the REIT, with same property NOI growth of 2.2%, operating earnings increased 2.4% to 30.4 cents per unit and the value of the portfolio value 18% to A$2.55 billion. Occupancy remained steady at 98%. Total po
Slide 7: Sustained Growth and Portfolio Performance
Slide 9 Sustained Growth Over the last 5 years the REIT has continued to deliver investors a secure and growing income stream and remains firmly focused on our 3 pillar strategy. This focus has delivered to our security holders a secure and growing income stream with total annual return continuing t
Slide 8: Portfolio Update and tenant relationships
With a firm focus on tenant relationships, customer amenity and convenience, our portfolio has continued to perform well maintaining a specialty retention rate of 87%. Slide 11 Portfolio Update Wesfarmers and Woolworths' leases continue to account for over 50% of base rent of the REIT, and anchor WA
Slide 9: Capital Transactions and divestments
Importantly, in line with our strategy to deliver best practice capital management, the timing of any divestments will be managed to ensure minimal earnings impact. Slide 13 Capital Transactions The table on this slide shows divestments executed over FY16 and more recently the three divestments made
Slide 10: Redevelopments
We always have anchor tenant leases executed, pre-commitments from major specialty tenants and a fixed price building contract signed before commencing any works. We will continue to identify opportunities across our portfolio like the two major redevelopment projects at Lake Macquarie Fair in NSW a
Slide 11: Debt maturity and FY17 Outlook
The current debt maturity profile with approximately 50% of debt termed out past 2026, reflects the defensive nature of the REITS portfolio and the long WALE from anchor tenants. US Private placement debt now totals $429m with maturities in 2026 and 2028. The REIT also included an additional Interna
Slide 12: Chairman - Close of Meeting
Chairman - Close of Meeting In closing today’s meeting I would like to acknowledge the loyalty that our investor partners, financiers, tenants and the community have shown us over 21 years, allowing the business to grow. We are well placed to continue to deliver on our strategy to provide investors
Slide 13: Charter Hall Retail REIT 2016 AGM
Charter Hall Retail REIT 2016 AGM
Slide 14: Contents
Charter Hall Retail REIT | 11 November 2016 Contents 1 Independent Chairman’s Presentation: John Harkness 2 Fund Manager's Presentation: Scott Dundas 3 Items of Business 4 Questions
Slide 15: Board of Directors and Fund Management Team
Charter Hall Retail REIT | 11 November 2016 Board of Directors John Harkness Independent Chairman Alan Rattray-Wood Sue Palmer Michael Gorman Greg Chubb David Harrison Independent Director Independent Director Independent Director Executive Director Executive Director Group Head of Retail Managing D
Slide 16: Independent Chairman's Presentation
Charter Hall Retail REIT | 11 November 2016 Independent Chairman's Presentation
Slide 17: Our Strategy
Charter Hall Retail REIT | 11 November 2016 Our Strategy #1 #2 #3 ACTIVE ENHANCE PRUDENT CAPITAL MANAGEMENT PORTFOLIO QUALITY MANAGEMENT Maintaining strong tenant relationships, Through value enhancing redevelopment, With a focus on a strong and flexible optimising tenancy mix through proactive sele
Slide 18: Corporate Responsibility and Sustainability
Charter Hall Retail REIT | 11 November 2016 Corporate Responsibility and Sustainability ECO INNOVATION PLACE CREATION WELLBEING Resilience Fit For Future Creating Healthy Spaces and Environments • Leverage cross-departmental • Continue to conduct surveys • Engage with our tenants and collaboration t
Slide 19: Fund Manager's Presentation
Charter Hall Retail REIT | 11 November 2016 Fund Manager’s Presentation
Slide 20: 2016 Highlights
Charter Hall Retail REIT | 11 November 2016 2016 Highlights 98% $2.55b STABLE OCCUPANCY 17.9% “We have continued to grow the REIT, enhancing PORTFOLIO VALUE the quality of the portfolio by recycling out of non-core properties into larger assets with forecast higher growth characteristics.” 6.2yrs W
Slide 21: Sustained Growth
Charter Hall Retail REIT | 11 November 2016 Sustained Growth • CQR strategy has continued to deliver a secure and growing income stream for investors • Over the last five years, total annual return has increased from 11.6% to 18.9% 1. Compound annual growth rate (CAGR) from FY12 to FY16 9
Slide 22: Portfolio Performance
Charter Hall Retail REIT | 11 November 2016 Portfolio Performance 71 Properties $2.50 billion value As at 30 September 2016 98.0% 78 Supermarkets Occupancy GLA 1,823 Specialty 534,696sqm Tenancies Adjusted for the sale of Pakington, Caboolture and Moe Kmart 10
Slide 23: Portfolio Update
Charter Hall Retail REIT | 11 November 2016 Portfolio Update As at 30 September 2016 Portfolio well positioned to continue to deliver a secure and growing income stream • Occupancy remains stable at 98.0% • Anchor WALE of 10.7 years • Specialty occupancy cost at 9.8% • Quarterly specialty sales grow
Slide 24: Acquisitions and Divestment Strategy
Charter Hall Retail REIT | 11 November 2016 Acquisitions and Divestment Strategy • Strategic focus over the next 2-3 years to deliver sustainable income growth by: Increasing average asset size through: • Targeting acquisitions of larger neighbourhood and smaller sub-regional shopping centres • Re
Slide 25: Capital Transactions
Charter Hall Retail REIT | 11 November 2016 Capital Transactions Capital Recycling • Continues strategy of enhancing the REIT’s portfolio quality by recycling out of non-core properties into larger, higher growth potential properties • Average asset value has increased from $32.7 million at June 201
Slide 26: Redevelopments
Charter Hall Retail REIT | 11 November 2016 Redevelopments Major Current and Completed Projects Enhancing Portfolio Quality Secret Harbour Shopping Centre, WA – Artist Impression Lake Macquarie Fair and Mount Hutton Plaza, NSW – Artist Impression Lansell Square, Vic. – Complete 14
Slide 27: Debt Restructuring
Charter Hall Retail REIT | 11 November 2016 Debt Restructuring “We have delivered an enhanced debt funding platform to establish a best practice capital structure. With a firm focus on prudent capital management, the REIT has no debt maturing until FY19 and a weighted average debt maturity of 6.2 ye
Slide 28: FY17 Outlook
Charter Hall Retail REIT | 11 November 2017 FY17 Outlook • We confirm that, barring unforeseen events and subject to the timing of acquisitions and divestments, the REIT’s FY17 guidance for operating earnings is expected to be 30.40 cpu • Distribution payout ratio range is expected to be between 90%
Slide 29: Items of Business
Charter Hall Retail REIT | 11 November 2016 Items of Business
Slide 30: Procedural Matters
Charter Hall Retail REIT | 11 November 2016 Procedural Matters • If there are any Unitholders who are eligible to vote who have not received their yellow voting card, please see a representative from Link Market Services at the registration desk • Unitholders holding a red card are not eligible to v
Slide 31: Formal Business
Charter Hall Retail REIT | 11 November 2016 Formal Business Resolution 1 is advisory only and is non-binding in Charter Hall Retail Management Limited (“CHRML”) or the Directors of CHRML. However, the Directors of CHRML intend to give due consideration to the results of this resolution to determine
Slide 32: Resolution: Re-election of Independent Director
Charter Hall Retail REIT | 11 November 2016 Resolution 1 Re-election of Independent Director To consider, and if thought fit, pass the following resolution, as an advisory, non-binding resolution of the Unitholders: “That Sue Palmer, a Director of CHRML be re-elected as a director of CHRML” 20
Slide 33: Resolution: Proxies
Charter Hall Retail REIT | 11 November 2016 Resolution 1 Proxies FOR: 242,170,576 98.66% OPEN: 698,580 0.28% AGAINST: 2,583,206 1.05% ABSTAIN: 342,189 21
Slide 34: Questions
Charter Hall Retail REIT | 11 November 2016 Questions
Slide 35: Important Notice
Charter Hall Retail REIT | 11 November 2016 Important Notice Charter Hall Retail Management Limited ABN 46 069 709 468; AFSL 246996 (“CHRML”) has issued this presentation in its capacity as the responsible entity of Charter Hall Retail REIT ARSN 093 143 965 (“CQR” or “the REIT”). This presentation h
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