Charter Hall Group · ASX:CHC
Charter Hall — Emerging Leaders Conference 2006
27 slides from Charter Hall's conference presentation, Mar 30, 2006
Slide 1: Charter Hall Group Emerging Leaders Conference
CHARTER HALL GROUP EMERGING LEADERS CONFERENCE 30 MARCH 2006 CHARTER HALL GROUP 1
Slide 2: Contents
CONTENTS 9 GROUP BACKGROUND INFORMATION 9 POINTS OF DIFFERENCE 9 OVERVIEW OF FUNDS 9 APPENDIX CHARTER HALL GROUP 2
Slide 3: Charter Hall Group At-A-Glance
CHARTER HALL GROUP AT-A-GLANCE 9 Property Funds Management and Development Group 9 Established in 1991 and listed on ASX in June 2005 as stapled security combining Charter Hall Limited and Charter Hall Property Trust 9 Strong track record of performance, growth and innovation in managing institution
Slide 4: Group Structure
GROUP STRUCTURE BOARD OF DIRECTORS 2 Executive (Andre Biet and Cedric Fuchs), 2 Non-executive, 4 Independent Stapled & Managed via Responsible Entity CHARTER HALL FUNDS MANAGEMENT LTD CHARTER HALL CHARTER HALL LIMITED PROPERTY TRUST Joint CEO Joint CEO David Harrison David Southon FUNDS PROPERTY PRO
Slide 5: Security Price Movement
SECURITY PRICE MOVEMENT Core Plus Office Fund launched Charter Hall Group Listing price 10 Jun 051 $0.75 105 AMEX lease signed at Atrium Diversified Property Fund launched Willis lease signed at Bourke Street ASX closing price4 $1.05 Entry into S&P / ASX 300 90 CHOF4 raised LPT ASX 300 Total return
Slide 6: Points of Difference
POINTS OF DIFFERENCE CHARTER HALL GROUP 6
Slide 7: Key Points of Difference
KEY POINTS OF DIFFERENCE 9 INVESTMENT PRODUCT SPECTRUM 9GROWTH 9 EQUITY SOURCES PLATFORM 9 DEAL FLOW CHARTER HALL GROUP 7
Slide 8: Investment Product Spectrum
INVESTMENT PRODUCT SPECTRUM NEW CHG PRODUCTS SINCE IPO EXISTING CHG PRODUCTS AT IPO 9 CHARTER HALL OPPORTUNITY FUND 4 9 CHARTER HALL PROPERTY TRUST (CHOF 4) (CHPT) 9 PROPERTY DEVELOPMENT PORTFOLIO 9 DIVERSIFIED PROPERTY FUND (DPF) 2&3 (PDP 2&3) 9 CHARTER HALL INVESTMENT FUNDS 9 CORE PLUS OFFICE FUND
Slide 9: Investment Product Spectrum
INVESTMENT PRODUCT SPECTRUM Return 18%+ OPPORTUNISTIC 15-17% ENHANCED PRODUCT UNIVERSE 12-14% CORE PLUS 9-11% CORE Risk Low High CORE CORE PLUS ENHANCED OPPORTUNISTIC DPF CHOF 4 CHG PRODUCTS CHPT CPOF * PDP 1,2,3 (JV with AMP) CHIF 1-6 INVESTMENT 70% passive property assets Passive investments Devel
Slide 10: Equity Sources
EQUITY SOURCES OFF BALANCE SHEET SOURCES APPLICATIONS 9 Charter Hall Opportunity Funds (CHOF 4) 9 WHOLESALE INVESTORS 9 Core Plus Office Fund (CPOF)* 9 Charter Hall Investment Funds (CHIF) 9 HIGH NET WORTH INVESTORS 9 Diversified Property Fund (DPF) 9 RETAIL INVESTORS 9 Diversified Property Fund (DP
Slide 11: Equity Sources Track Record
EQUITY SOURCES TRACK RECORD 9 $434m of institutional equity raised across 4 opportunity funds since 1997 9 $165m Charter Hall Opportunity Fund 4 (part of above) significantly oversubscribed in July 05, largest fund of its kind to-date in Australia 9 Currently raising new Core Plus Office Fund (CPOF)
Slide 12: Deal Flow
DEAL FLOW RELATIONSHIPS WITH VENDORS & AGENTS 9 15 assets totalling $508m acquired over last 12 months, 100% off-market 9 50% increase in core investment, recurring income style assets under management since IPO 9 Geographic acquisition spread: QLD, WA, VIC and NSW. 9 Sectoral acquisition spread: Of
Slide 13: Deal Flow
DEAL FLOW 2,500 $2,166m Opportunistic Assets (completion value) 2,000 Core Investment Assets 1,500 Current AUM $1,165m 1,000 500 0 2000 2001 2002 2003 2004 2005 2006 Fully 6 months invested CPOF CHARTER HALL GROUP 13
Slide 14: Overview of Funds
OVERVIEW OF FUNDS CHARTER HALL GROUP 14
Slide 15: Property Trust (CHPT)
PROPERTY TRUST (CHPT) 9 Strong asset diversification and quality tenant composition Bourke 20.8% Kent Industrial Chullora 6.1% Gov't & 8.1% Gov't 4.8% Retail / Bulky DPF Related 3.3% Goods Retail 17.6% Menai 59.7% CPOF 13.0% Commercial National, 9.4% 34.2% Internat'l & Other Retail 15.3% Mentone Nun
Slide 16: Property Trust (CHPT)
PROPERTY TRUST (CHPT) 9 WALE increased to 6.1 years from PDS 5.2 years1,2 9 Occupancy increased to 99% (100% including income support) 9 All properties performing well with 85% of income generated from government related, national and chain retailer tenants 9 CHPT to hold approx 20% stake in CPOF3 a
Slide 17: Property Trust (CHPT) Lease Expiry Profile
PROPERTY TRUST (CHPT) LEASE EXPIRY PROFILE BY NET INCOME 50% Nunawading & Mentone represent uncommitted tenancies 40% Wilson Parking 30% Lease Expiry Profile 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 DPF 5.7 CQU 6.5% CPOF 13.3 Harvey Norman 6.3% Mento
Slide 18: CHOF 4
CHOF 4 9 Launched in July 2005 after being significantly oversubscribed 9 Raised $165m of equity - largest opportunity fund in Australia 9 Capacity created for over $500m of project end value 9 2 projects in Brisbane underway with total end value of approx $160m 9 Balance of equity to be allocated o
Slide 19: CHOF 4 Projects
CHOF 4 PROJECT 1: NORTHBANK PLAZA, BRISBANE (STAGE 1) 9 Refurbishment of existing 26,000sqm office building 9 50/50 JV with local development & investment group Indigo 9 Completion Value $134m, Completion Date late 2007 9 Stage 2 (adjacent site co-owned by CHOF 4) under investigation for a new A-gra
Slide 20: Diversified Property Fund
DIVERSIFIED PROPERTY FUND 9 Launched in September 2005 9 Current AUM $48m comprising 5 assets in 4 states, NSW, QLD, WA and VIC 9 Targeting asset size in $5-30m price bracket 9 Open-ended fund with strong potential for growth – primary vehicle for CHIF AUM growth 9 CHG receives acquisition, funds ma
Slide 21: Diversified Property Fund
DIVERSIFIED PROPERTY FUND 9 Good asset diversification and quality tenant composition St Georges Tce Perth CBD WA 30.5% Other Mulgrave 30.5% QLD 8.7% Melb Metro 9.8% 11.9% National, Internat'l & Retail St Pauls Tce Chain Gov't Brisbane Fringe Kent St 64.9% 9.8% Related Sydney CBD NSW 26.4% 24.7% VIC
Slide 22: Core Plus Office Fund (CPOF)
CORE PLUS OFFICE FUND (CPOF) 9 Launched in December 2005 and $137m seed asset acquired 9 Open-ended fund targeting institutional investors 9 Target raising $250-500m of equity providing up to $1,100m asset capacity 9 Fund to hold primarily passive and some assets with enhanced component 9 Annual fun
Slide 23: Core Plus Office Fund (CPOF) Seed Asset
CORE PLUS OFFICE FUND (CPOF) SEED ASSET 9 $137m, 20,000sqm Atrium acquired from PDP 2 9 Pre-leased to AMEX and Coles Supermarket 9 Located in Pyrmont on Sydney’s CBD fringe 9 Stable, secure and growing distribution yields 9 A-Grade office building with retail area & parking 9 Under construction unti
Slide 24: Appendix
APPENDIX CHARTER HALL GROUP 24
Slide 25: Key Events Since IPO
KEY EVENTS SINCE IPO DATE NEW FUNDS LAUNCHED ACQUISITIONS PROJECTS: NEW & COMPLETED LEASING DEALS Diversified Property Fund CHOF 4 FEB $14.7m Emirates House office asset 2nd project secured ($134m end value) 2006 acquired in Perth CBD Northbank Plaza, Brisbane CBD Core Plus Office Fund * Diversified
Slide 26: New Products Since IPO
NEW PRODUCTS SINCE IPO FUND EQUITY ($m) AUM ($m) DESCRIPTION 9 Property development, Australia wide $350 9 Target Equity IRR 20+, gearing 65% of completion value Opportunity To be 9 Wholesale (institutional) investors , closed end, CHPT committed $5m investment $165 Fund 4 identified 9 Equity invest
Slide 27: Existing Products at IPO
EXISTING PRODUCTS AT IPO FUND EQUITY ($m) AUM ($m) DESCRIPTION 9 Property development, eastern seaboard Property $269 $694 9 Target Equity IRR 25+, gearing 65% of completion value Development Completed 9 Wholesale (institutional) investors , closed end, equity invested with 2 and repatriated Portfol
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