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CHARTER HALL GROUP Interim / Quarterly Report 2009

Feb 23, 2009

64645_rns_2009-02-23_db8352d6-6a3c-4b37-910b-5b80f4791cbb.pdf

Interim / Quarterly Report

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Charter Hall Group First Half FY09 Results 24 February 2009

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Agenda

  • First Half FY09 Summary

  • Earnings Overview

  • Charter Hall Property Trust

  • Charter Hall Managed Funds

  • Development

  • Financials

  • Capital Management

  • Outlook

  • Questions

  • Appendices

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Charter Hall Group 1H FY09 Results Presentation

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Section one First Half FY09 Summary

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275 George Street Brisbane (CHOF4 & CPOF) and Northbank Plaza, Brisbane (CPOF)

First Half FY09 Summary

  • Underlying Earnings of $20.9 million for 1H FY09

  • Transitioned business to adjust to low growth environment and absorb asset devaluations

  • Refinancing or negotiation of new debt facilities totalling $1.4 billion for CY08

  • Improved headroom with debt covenants

  • 62,200m[2 ] in new leases secured since 30 June 2008

  • Resilient investment portfolio

  • High occupancy, strong tenant covenants, long WALE and strong fixed annual rent increases

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Charter Hall Group 1H FY09 Results Presentation

4

First Half FY09 Summary

1H FY09 1H FY08
Underlying Earnings1 $20.9m $26.3m
Underlying EPS2 4.80c 6.28c
DPS 3.96c 6.30c
NPAT (AIFRS) ($16.6m) $46.5m
AT 31 DECEMBER 08 AT 30 JUNE 08
AUM $3.87bn $3.90bn
Total Group Assets $610m $802m
Total Group Net Assets $488m $492m
NTA $1.09 $1.19
Gearing3 11% 31%
Group NTA: Market Cap4 4 : 1 1 : 1

NOTES:

  1. Excluding fair value adjustments, gains on sale, non-cash tax benefits and non cash expenses. 2. Underlying Earnings redefined to exclude income tax benefit.

  2. Calculated as borrowings net of cash over total assets net of cash. 4. Based on CHC security price closes on 31 December 2008 and 30 June 2008 of $0.28 and $1.06 respectively.

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Charter Hall Group 1H FY09 Results Presentation

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Section two Earnings Overview

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ONE30 Stirling Street, Perth (CPOF)

Group Revenue

� 1H FY09 revenue of $31.9 million[1]

  • Reduced exposure to property income due to selling down CPRF properties

  • Minimal transaction fee, performance fee and development investment income in CHL

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CHL $41.7m
CHPT
$31.9m
$22.3m
$17.0m
$19.4m
$14.9m
1H FY08 1H FY09
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NOTE:

  1. Revenue in this analysis excludes interest income, is net of property expenses and includes the $1.05 million contribution from Commercial & Industrial Property Pty Ltd (CIP)

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Charter Hall Group 1H FY09 Results Presentation

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Group Revenue

Revenue composition

1H FY09 revenue breakdown ($31.9 million)

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$19.4m Performance Development
1H FY08 Property Fees Investment
Management 3% 2%
1H FY09
and Other Fees
$15.5m 4%
$14.9m
Development
Management
Fees
21%
CHPT Revenue
46%
$8.8m
$5.6m
$4.5m
$3.4m
$0.9m Base Fees
$0.6m
24%
CHPT Revenue Services Fees1 Performance Fees Transaction Fees Development
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NOTE:

  1. Services fees include fund management, development management, property management and other fees.

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Charter Hall Group 1H FY09 Results Presentation

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Group EPS and DPS

Underlying EPS down 24% on pcp basis

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6.28c 6.30c
EPS
DPS
4.80c
3.96c
1H FY08 1H FY09
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Charter Hall Group 1H FY09 Results Presentation

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Section three Charter Hall Property Trust

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Atrium, 60 Union Street, Pyrmont (CPOF)

Charter Hall Property Trust (CHPT)

  • 84% (by value) of the portfolio revalued independently over 1H FY09

  • 38 basis points (bps) like for like expansion in weighted average capitalisation rate

  • Continues to be partially offset by strong rental increases and realised development margins

CHPT MARKET FIXED VALUERS’ LIKE FOR LIKE LIKE FOR LIKE
CO-INVESTMENT CAP RATE RENTAL DISCOUNT CHANGE IN CHANGE IN
REVIEWS RATE CAP RATE CAP RATE
6 MONTHS 12 MONTHS
($M) (%) (%) (%) (%) (%)
Core Plus Office Fund (CPOF) 187.5 7.05% 3.95% 9.08% 0.27% 0.63%
Core Plus Industrial Fund (CPIF) 56.7 7.58% 3.22% 9.23% 0.40% 0.54%
Core Plus Retail Fund (CPRF) 145.0 7.47% 3.23% 9.21% 0.43% 0.66%
Diversified Property Fund (DPF) 23.6 7.72% 3.59% 9.34% 0.62% 0.72%
Charter Hall Umbrella Fund (CHUF) 54.2 7.38% 3.51% 9.19% 0.40% 0.63%
Total/weighted average 467.0 7.31% 3.57% 9.17% 0.38% 0.63%

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Charter Hall Group 1H FY09 Results Presentation

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Charter Hall Property Trust (CHPT)

  • Reconciliation of fall in value CHPT property investment portfolio

  • CHPT portfolio falls from $497 million (post CPRF raising) to $467 million

  • Net fall of $30.4 million comprises of $2.0 million from net sales and $28.4 million fall in value of co-investment stakes

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$30.4m
Net sales $2.0m $2.0m
$5.5m
$4.7m
Fall in value of
co-investment
stakes $28.4m
$10.2m
$3.5m
$4.4m
Net negative Net sales over CPOF CPIF CPRF DPF CHUF
movement of period
CHPT portfolio
Falls in value of co-investment stakes
(Fair value adjustments: non-cash)
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NOTE:

  1. Net sales of made up by the $17.2 million sale of 56 Anzac Street, Chullora less $11.5 million of DPF and CHUF Units acquired and $3.7 million of CPIF units issued to CHPT.

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  • Charter Hall Group

1H FY09 Results Presentation

12

CHPT Portfolio Metrics

Weighted average lease expiries (years, by net income)

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CPOF 7.9
CPIF 11.6
CPRF 9.0
DPF 7.5
CHUF 9.0
CHPT 8.8
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Charter Hall Group 1H FY09 Results Presentation

Sector diversification (by value)

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Industrial,
17%
Office, 45%
Retail, 39%
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CHPT Portfolio Metrics

Asset diversification

(by value)

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DPF, $23.6m,
CHUF, $54.2m,
5%
12%
CPOF,
$187.5m, 40%
CPRF,
$145.0m, 31%
CPIF, $56.7m,
12%
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Charter Hall Group 1H FY09 Results Presentation

Geographical diversification

(by value)

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SA, 1%
ACT, 2%
WA, 17% NSW, 23%
NZ, 3%
Qld, 27%
Vic, 28%
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CHPT Portfolio Metrics

Top 15 tenants

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(by income)
Bunnings 9.5%
Coles 7.3%
Telstra 6.5%
Westpac/St George 5.7%
Commonw ealth Government 3.7%
Woolw orths 3.5%
AMEX 3.5%
Harvey Norman 3.4%
Mercer 2.1%
K&S 2.0%
Monash University 1.7%
Volvo 1.5%
Queensland Gas Company 1.3%
Fastline 1.1%
Wilson Car Park 1.1%
Charter Hall Group
1H FY09 Results Presentation
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Lease expiry profile

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Current 1.5%
FY09 1.2%
FY10 3.4%
FY11 4.9%
FY12 5.7%
FY13 4.1%
FY14 7.5%
FY15 4.8%
FY16 6.4%
FY17 7.3%
FY18 8.%
FY19 19.2%
FY20 7.5%
FY21 -%
FY22 5.7%
FY23 2.4%
FY24 10.4%
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Section four Managed Funds

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Bluewater Square, Redcliffe (CPRF)

Assets Under Management

� Assets under management (AUM) of $3.87 billion

  • 85% wholesale investors

  • No redemptions in wholesale funds

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Charter Hall AUM
$3,867m
Wholesale Investor Funds Retail Investor Funds
$3,282m $585m
Opportunistic Core Plus
$839m $2,443m
CHOF4 CHOF5 CPOF CPIF CPRF DPF CHUF CHIFs
$478m $361m $1,586m $387m $470m $238m $200m $147m
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Charter Hall Group 1H FY09 Results Presentation

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Assets Under Management

  • Reconciliation of AUM change over 1H FY09

  • Falls in value due to capitalisation rate expansion partly offset by strong rental growth

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+$62m
+$52m
($142m)
$3,895m
$3,867m
FY08 Additions Rental growth Cap rate HY09
compression
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Charter Hall Group 1H FY09 Results Presentation

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Wholesale Investment Funds Update

Core Plus Office Fund (CPOF)

– 20% of assets (by value) identified for sale AUM $1,586m
– Occupancy of 97% expected to improve with deferral of proposed refurbishment/
redevelopment projects		 Change in AUM1
CHPT Stake		 ($15m)
24%
– Targeting 35-45% gearing level WALE
Occupancy		 7.8 years
97%
Core Plus Industrial Fund (CPIF)
– Current gearing of 35% provides acquisition capacity (subject to debt availability) AUM $387m
– Un-called equity of $120 million or 34% of $350 million equity commitments Change in AUM1
CHPT Stake		 +$48m
25%
– Excellent buying opportunities emerging WALE 11.6 years
Occupancy 100%
Core Plus Retail Fund (CPRF)
– Up to 20% of assets (by value) identified for sale AUM2 $470m
– Challenging environment for non-majors/specialities Change in AUM1
CHPT Stake		 ($24m)
62%
– Deferral of development projects WALE 9.0 years
Occupancy 100%

NOTE:

  1. Since July 2008 (as reported in FY09 results presentation, post CPRF close).

  2. Includes on-completion value of Harvey Norman Mentone and other developments not yet completed or commenced.

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Charter Hall Group

  • 1H FY09 Results Presentation

19

Wholesale Opportunistic Funds Update

Charter Hall Opportunity Fund No.4 (CHOF4)

– Agents appointed to sell two assets (Alluvion, 54-58 Mounts Bay Road, Perth and AUM $478m
50% of 275 George Street, Brisbane) CHPT Stake 3%
– Completing projects in FY09 substantially leased to strong tenant covenants. Debt
funding in place for all projects currently under construction
– Focus on completing projects and leasing remaining vacancies
Charter Hall Opportunity Fund No.5 (CHOF5)
– Considerable capacity with unallocated equity of $113 million AUM $361m
– Focus on securing development approvals, leasing pre-commitments and pre-sales CHPT Stake 15%
– Opportunistic focus for incubated projects where debt finance is available or in place

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Charter Hall Group 1H FY09 Results Presentation

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Retail Equity Funds Update

Diversified Property Fund (DPF)

– Selective asset sales program underway AUM $238m
– Open for applications and continues to receive inflows Change in AUM1
CHPT Stake		 ($12m)
26%
WALE 7.5 years
Occupancy 100%
Charter Hall Umbrella Fund (CHUF)
– Diversified portfolio with exposure to over 70 assets AUM $200m
– Since inception, positive IRR (+0.2%), well above A-REIT index (-55%) and weighted
benchmark index (-16%)		 Change in AUM1
CHPT Stake		 ($23m)
25%
– Expected to re-open for applications shortly, subject to market environment WALE
Occupancy		 9.0 years
99%

NOTE:

  1. Since July 2008 (as reported in FY09 results presentation, post CPRF close).

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Charter Hall Group 1H FY09 Results Presentation

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Section five Development

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Sydney Wharf, Wharf 8 - 9, Pirrama Road, Pyrmont (PDP3)

Development Book

  • Total development book under construction of $897 millon[1]

  • Off balance sheet landbank inventory of $322 million

  • Significant capacity in CHOF5

  • Substantially funded pipeline

  • Protect investor capital and maximise IRR

  • Extending funding arrangements and selling assets

  • Development construction roll-off (completed value)

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$548m
Office
Bulky goods
$370m
$246m
$212m
$178m
$103m
$34m
2009 2010 2011
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Residential
Bulky goods
15%
19%
Industrial
2%
Retail
5%
Office
59%
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NOTE:

  1. On completion value.

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Charter Hall Group 1H FY09 Results Presentation

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Commercial & Industrial Property (CIP)

  • Industrial pre-lease development business in which CHC has a 50% interest

  • CIP 1H FY09 NPAT of $2.6 million (100%)

  • $1.05 million of CIP earnings recognised by CHC in 1H FY09

  • CIP business model growing development services

  • Continue to pursue projects where the capital partner is the land owner or take-out investor

  • More focus on development management services to select clients

  • Develop new strategies to adapt to current conditions

    • Joint venturing with private investors

    • Focus on project delivery with minimal equity risk

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Charter Hall Group 1H FY09 Results Presentation

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Section six Financials

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Bunnings,
South Nowra (CPRF)
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Income Statement

$M 1H FY09 1H FY08
Direct net property income 1.1 4.5
Indirect property income 12.8 14.7
Other trust income 1.0 0.2
Total CHPT income 14.9 19.4
Development investment income1 0.6 4.5
Funds management income – Base fees 7.8 4.1
Funds management income – Development management 6.6 4.4
Funds management income – Performance fees 0.9 5.6
Funds management income – Transaction fees - 3.4
Other corporate income 1.1 0.3
Total CHL income 17.0 22.3
Total income 31.9 41.7
Expenses2 (10.0) (7.7)
EBIT 21.9 34.0
Net interest expense (1.0) (7.7)
Underlying earnings 20.9 26.3

NOTES:

  1. Excludes derivative financial instrument expense of CHOF4 & 5. 2. Excludes employee LTIP non-cash expense.

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Charter Hall Group 1H FY09 Results Presentation

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Underlying Earnings Reconciliation

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1H FY09
+$10.2m
4.80cps
3.96cps
($4.6m)
$0.1m
+$31.8m
$20.9m
$17.7m
($16.6m)
AIFRS loss Property and MTM FV Profit on sale Other non-cash Underlying Earnings Distribution
Investments FV adjustments items
adjustments
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Charter Hall Group 1H FY09 Results Presentation

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Balance Sheet

PROFORMA 31 DECEMBER
FEBRUARY 20091 2008
($M)
($M)
Direct property - 41.0
Indirect property investments 467.7 467.7
Other investments 63.2 63.2
Cash,receivables and other assets 37.7 38.3
Total assets 568.6 609.6
Borrowings 52.8 69.0
Other liabilities 28.1 52.9
Total liabilities 80.9 121.9
Net assets 487.7 487.7
Securities on issue(AIFRS) 446.5 446.5
NTA($) $1.09
$1.09
Gearing2 8.9% 10.9%

NOTES:

  1. 31 December 2008 adjusted for 56 Anzac Street, Chullora and Harvey Norman Centre, Mentone (unaudited). 2. Calculated as net debt over total assets net of cash.

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Charter Hall Group 1H FY09 Results Presentation

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Section seven Capital Management

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202 Pier Street,
Perth (CHOF5)
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Capital Management

KEY CAPITAL MANAGEMENT METRICS FOR CHC PROFORMA
FEBURARY 20091		 31 DECEMBER
2008
Debt balance (net of cash) $50.2m $66.8m
Gearing2 8.9% 10.9%
‘Look through’ gearing3 46.5% 48.6%
Debt maturity 2.4 years 2.6 years
Portion of net debt hedged 90% 115%
Weighted average fixed interest hedge duration 1.3 years 2.0 years
Weighted average fixed rate(includingmargin) 7.0% 7.4%

� Low headstock gearing with capacity for future funding requirements

  • Equity commitments to Opportunity and Core Plus funds

  • No capital expenditure or tenant incentives at CHC level

  • Underlying funds debt facilities are stand-alone – no recourse to or guarantee from CHC

NOTES:

  1. Proforma assumes Harvey Norman Centre, Mentone and 56 Anzac Avenue, Chullora sale transactions from CHPT to funds have been completed (unaudited). 2. Gearing calculated as net debt over total assets net of cash.

  2. Look through gearing calculated by incorporating CHC’s proportional share of assets and debt of the funds in which it co-invests.

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Charter Hall Group 1H FY09 Results Presentation

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Capital Management

  • Substantial focus on debt management

  • $1.4 billion renegotiated or refinanced in CY08

  • All facilities are compliant with covenants

  • Significant headroom for asset devaluation

  • Increase headroom further through:

  • Covenant restructuring

  • Strategic asset sales

  • No “unusual” requirements

  • No market capitalisation trigger or condition

DEBT FACILITY CHC CPOF CPRF CPIF DPF
Asset valuation ($m) 567 1,361 424 357 238
Net debt drawn ($m)
1		 50 646 201 135 145
Duration (years)1 2.3 3.0 2.3 2.8 2.8
LOAN TO VALUE RATIO2
Current LVR3 9% 48% 47% 38% 61%
Revised LVR covenant4 25% 57% 60% 61% 65%
LVR headroom N/A 16% 18% 29% 6%
INTEREST COVER RATIO
Current ICR3 7.1x 1.5-2.9x 2.4x 2.6-5.0x 1.5-2.6x
ICR covenant range 3.0x 1.3-1.4x 1.4x 1.4-1.7x 1.3-1.4x
  • Derivatives excluded from covenants

NOTES:

  1. Maturities for some facilities are subject to finalisation with finance providers.

  2. Property LVR covenants shown for all facilities except CHC’s LVR covenant which is a total liabilities to total assets covenant.

  3. Some LVR and ICR covenants for facilities in CPOF, CPRF and CPIF are subject to finalisation with finance providers.

  4. Headroom percentage calculated as the percentage by which asset values can fall before breaching LVR covenants.

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Charter Hall Group 1H FY09 Results Presentation

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Capital Management

  • Debt expiry profile based on renegotiated facilities[1]

  • No maturities until 1H FY11

  • Significantly extended maturity profile over last six months and increased diversity of debt providers

Debt expiry profile by fund

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$600m
DPF $517m
$500m CPIF $463m
CPRF
$400m
CPOF
CHC
$300m
$200m
$133m
$100m
$48m
$16m
$0m
2HFY09 1HFY10 2HFY10 1HFY11 2HFY11 1HFY12 2HFY12 1HFY13
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NOTE:

  1. A number of facilities are subject to finalisation with finance providers.

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Charter Hall Group 1H FY09 Results Presentation

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Section eight Outlook

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225 St Georges Terrace, Perth (CPOF)

Outlook

  • Expect continuation of challenging conditions

  • Requires active management of investment portfolios and debt facilities

  • Progress sale program of both direct assets and co-investments to further deleverage CHC and funds

  • Survival will ensure CHC is well positioned to service both wholesale and retail investor clients when the property sector recovers

  • Continue to focus on new fund rollouts

  • Appointment of Andrew Glass (ex GIC) as CIO to focus on wholesale investment funds and mandates

  • Positive signs emerging

  • Private investors starting to take advantage of the positive yield spread created by lower interest rates and higher yields

  • Opportunities are emerging to work with banks on well incubated projects with debt finance in place

  • Significant constraints on supply across all property sectors will ultimately underpin property values

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Charter Hall Group 1H FY09 Results Presentation

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EPS and DPS outlook

  • CHC has now excluded a non-cash income tax benefit from its previously provided FY09 Underlying EPS guidance of 9.73cps

  • This exclusion reduces EPS guidance to approximately 8.0cps for FY09

  • Focus on cash earnings

  • In the current uncertain market conditions, CHC withdraws previously provided DPS guidance of 8.0cps for FY09

  • The Group’s revised DPS guidance is to distribute taxable income for FY09

  • Estimated to be 5.0cps

  • CHC believes that this updated distribution policy represents prudent capital management in the current environment

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Charter Hall Group 1H FY09 Results Presentation

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Questions

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Section nine Appendices

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181 St Georges Terrace, Perth (DPF)

Appendix A - Earnings Reconciliation

1H FY09 1H FY08
($M) ($M)
NPAT (AIFRS) (16.6) 46.5
Fair value adjustments 31.8 (16.3)
Derivative financial instruments1 10.2 (0.5)
Gains on sale of investments (4.6) (5.0)
Other2 0.1 1.6
Underlying Earnings 20.9 26.3

NOTE:

  1. In FY09 $9.8 million relates to mark to market of CHPT NAB facility. Balance relates to CHOF4 & 5. 2. Other includes LTIP $1.5 million, tax benefit $(1.7m) and amortisation $0.3 million

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Charter Hall Group 1H FY09 Results Presentation

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Appendix B - CHPT Investments

31 DECEMBER 2008 31 DECEMBER 2008 30 JUNE 08 – POST CPRF
RAISING		 30 JUNE 08 – POST CPRF
RAISING		 30 JUNE 2008 30 JUNE 2008
CHPT stake CHPT investment
CHPT stake		 CHPT investment
CHPT stake		 CHPT investment
(%) ($m) (%) ($m) (%) ($m)
Direct properties 17 17
CPOF 24% 187 23% 193 20% 161
CPIF 25% 57 25% 58 25% 58
CPRF 62% 145 62% 155 100% 423
DPF 26% 24 24% 24 24% 24
CHUF 25% 54 22% 50
Total 467 497 683

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Appendix C - Capital Management

FACILITY ASSET DRAWN MATURITY CURRENT LVR HEAD ICR ACTUAL NOTES: NOTES:
VALUES
($M)		 DEBT
($M)		 LVR COVENANT ROOM % COVENANT ICR 1. Covenants for CPOF, CPRF
and CPIF group facilities
CHC are subject to finalisation
Group facility 567 50 Jul-11 9% 25% N/A 3.00x 7.09x with finance providers.
CPOF 2. Maturities for CPOF and
CPIF group facilities subject
Group facility 744 362 Jul 12 49% 60% 19% 1.40 1.71 to finalisation with finance
Monash University, Melbourne 69 35 Dec 11 50% 60% 10% 1.30 2.90 providers.
144 & ONE30 Stirling Street,
Perth		 99 48 Feb 12 48% 60% 9% 1.30 N/A 3. Headroom % calculated as
the percentage by which
King William Street and Pirie
Street, Adelaide		 37 21 Sep 11 56% 60% 6% 1.25 1.46 asset values can fall before
breaching LVR covenants.
Northbank Plaza, Brisbane 200 89 Aug 11 45% 50% 11% 1.40 1.62 4. Property LVR covenants
shown for all facilities
St George Bank, Kogarah 129 54 Sep 11 42% 50% 17% 1.25 1.80 except CHC group facility
570 Bourke Street, Melbourne 78 39 Jun 11 50% 55% 10% 1.25 1.87 which is a total liabilities to
total assets covenant.
Other assets 6 5. Drawn debt shown net of
Total CPOF 1,361 646 3.0 years 48% 57% 16% 1.25-1.4x 1.46-2.9x cash. Cash balance at fund
CPRF level used to reduce various
debt facilities.
Group facility 424 201 Jul 11 47% 60% 18% 1.35x 2.39x
CPIF
Group facility 202 55 Jul 12 27% 60% 37% 1.70 4.99
Coles, Perth (75%) 134 71 Jun 11 53% 65% 18% 1.40 2.56
130-138 Link Road, Melbourne 17 9 Oct 11 50% 50% 0% 1.50 2.60
Other assets 4
Total CPIF 357 135 2.8 years 38% 61% 29% 1.4-1.7x 2.56-4.99x
DPF
Portfolio facility (NAB) 93 59 Oct 11 63% 65% 3% 1.25 1.73
Coles, Perth (25%) 45 24 Jun 11 53% 65% 18% 1.40 2.56
Portfolio facility (AXA) 100 62 Various 63% 65% 4% 1.35 1.51
Other assets
Total DPF 238 145 2.8 years 61% 65% 6% 1.25-1.4x 1.51-2.56x

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Appendix D - Development Book

PROJECTS CURRENTLY UNDER CONSTRUCTION FUND SECTOR COMPLETION VALUE COMPLETION DATE
($M) (CY)
Home HQ Ipswich, Ipswich Qld CPRF Bulky goods 34 2009
ONE30 Stirling Street, Perth WA CPOF Office 88 2009
275 George Street, Brisbane Qld CPOF (50%) Office 185 2009
275 George Street, Brisbane Qld CHOF4 (50%) Office 185 2009
Alluvion, 54-58 Mounts Bay Road, Perth WA CHOF4 (50%) Office 103 2010
Home HQ North Shore, Artarmon NSW CHOF4 Bulky goods 132 2010
Home HQ Gepps Cross, Adelaide SA CHOF4 (50%) Bulky goods 46 2010
40 Creek St, Brisbane Qld CHOF5 Office 124 2009
Total 897
OFF-BALANCE SHEET LANDBANKS FUND SECTOR LAND VALUE
($M)
Harvey Norman Centre, Mentone Vic CPRF Retail 58
200 Holt Street, Pinkenba Qld CPIF Industrial 14
772-776 Boundary Rd, Richlands Qld CPIF Industrial 7
Mentone Residential, Mentone Vic CHOF4 Residential 10
Home HQ Hastings, Hastings NZ CHOF5 Bulky goods 14
Whakatu Site, Hastings NZ CHOF5 Bulky goods 4
202 Pier Street, Perth, WA CHOF5 Office 38
1406-1408 Anzac Parade, Little Bay NSW CHOF5 Residential 178
Total 322

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Appendix E – Property Portfolio

CORE PLUS OFFICE FUND (CPOF) IND. VALUE IND. MKT CAP MKT CAP MCR VALUER’S WALE RENT
VALUATION RATE RATE CHANGE DISCOUNT (YEARS) REVIEWS
DATE 31 DEC 08 30 JUNE 08 RATE/ IRR
($M) (%) (%) (%) (%) (%)
Atrium, 60 Union Street, Pyrmont NSW 159.7 31 Dec 08 6.50% 6.00% 0.50% 8.75% 10.3 3.86%
331 & 333 George Street, Sydney NSW 82.0 31 Dec 08 4.75%/6.88% 6.30% 0.58% 8.75% 3.1/3.6 4.00%/3.63%
167 Macquarie Street, Sydney NSW 95.0 30 Jun 08 7.50% 7.20% 0.30% 8.75% 4.2 3.70%
34 Hunter Street, Sydney NSW 42.5 31 Dec 08 6.50% 5.88% 0.63% 8.75% 1.6 3.76%
St George Bank, Kogarah NSW 129.0 31 Dec 08 7.25% 7.00% 0.25% 8.75% 12.8 3.25%
Northbank Plaza, Brisbane Qld 200.0 30 Jun 08 6.50% 6.50% 0.00% 9.00% 8.7 4.52%
275 George Street, Brisbane Qld (50%)1 189.5 30 Jun 08 6.25% 6.25% 0.00% 8.75% 9.9 4.46%
Hatch, 144 Stirling Street, Perth WA 47.3 30 Sep 08 8.75% 8.00% 0.75% 9.75% 2.3 4.35%
ONE30 Stirling Street, Perth WA1 87.8 30 Sep 08 7.50% 7.25% 0.25% 10.00% 9.5 4.52%
BHP House, 225 St Georges Terrace, Perth WA
(50%)		 88.5 31 Dec 08 8.75% 8.50% 0.25% 9.75% 4.2 4.24%
51 Pirie Street, Adelaide SA 14.5 31 Dec 08 8.50% 8.00% 0.50% 9.25% 3.0 3.00%
Bank SA, 97 King William Street, Adelaide SA 22.0 31 Dec 08 8.00% 7.50% 0.50% 9.50% 12.8 3.25%
11 Exhibition Street, Melbourne Vic 185.0 30 Sep 08 6.25% 6.13% 0.13% 8.50% 7.1 3.56%
150 Queen Street, Melbourne Vic 30.6 31 Dec 08 7.75% 7.25% 0.50% 9.25% 1.3 4.26%
Monash University, 399 Royal Parade,
Parkville Vic		 74.0 30 Sep 08 6.55% 6.25% 0.30% 8.50% 20.3 4.08%
109 St Georges Terrace, Perth WA 60.5 31 Dec 08 9.50% 9.00% 0.50% 12.00% 3.9 3.85%
570 Bourke Street, Melbourne Vic (50%) 77.7 31 Dec 08 7.25% 7.00% 0.25% 9.50% 3.6 3.74%
Total/weighted average 1,585.6 7.05% 6.78% 0.27% 9.08% 7.9 3.95%

NOTE:

  1. Projects under development. Independent value represents value on completion. Book values for 275 George Street: $131.7 million and ONE30 Stirling Street: $51.6 million.

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Appendix E – Property Portfolio

CORE PLUS INDUSTRIAL FUND (CPIF) IND. IND. MKT CAP MKT CAP MCR VALUER’S WALE RENT
VALUE VALUATION RATE RATE CHANGE DISCOUNT REVIEWS
DATE 31 DEC 08 30 JUNE 08 RATE/ IRR
($M) (%) (%) (%) (%) (YEARS) (%)
Chatswood Business Park, 372 Eastern 29.5 31 Dec 08 8.00% 7.50% 0.50% 9.00% 3.6 3.42%
Valley Way, Chatswood NSW
56 Anzac Street, Chullora NSW 18.5 30 Sep 08 8.75% N/A N/A 9.25%
Coles Distribution Centre, 136 Horrie Miller 133.9 31 Dec 08 7.13% 6.75% 0.37% 9.25% 19.4 2.75%
Drive, Perth Airport WA (75%)
123-135 Kewdale Road Kewdale WA 32.2 31 Dec 08 8.25% 7.50% 0.75% 9.75% 4.7 3.87%
55-65 Sky Road, Melbourne Airport Business 8.1 31 Dec 08 8.00% 7.25% 0.75% 9.50% 7.8 3.50%
Park (Kathmandu) Vic
130-138 Link Road, Melbourne Airport 17.5 20 Oct 08 8.00% 7.50% 0.50% 9.25% 2.9 3.25%
Business Park (CAT & Primus) Vic
309 Fitzgerald Road, Derrimut Vic 27.9 31 Dec 08 7.50% 7.00% 0.50% 9.25% 18.8 3.50%
Schenker, Cnr Link & South Centre Roads, 13.6 30 Jun 08 7.00% N/A N/A 8.75% 10.3 3.50%
MABP Vic
Citiport Industrial Estate, 17 Sugarmill Rd, 21.2 31 Dec 08 8.00% 7.50% 0.50% 9.25% 1.4 3.63%
Meeandah Qld
140-160 Robinson Road Geebung, Qld 26.5 31 Dec 08 7.80% 7.25% 0.55% 9.00% 5.7 3.54%
Toll, 7 Viola Place, Brisbane Airport Qld 9.3 31 Dec 08 8.00% 7.50% 0.50% 9.50% 8.2 3.25%
Smorgan, Main Beach Road, Pinkenba, Qld 28.5 23 Sep 08 7.15% N/A N/A 9.00% N/A
200 Holt Street, Pinkenba Qld1 13.6 31 Dec 08 N/A N/A N/A N/A N/A N/A
772-776 Boundary Road, Richlands Qld1 6.6 31 Dec 08 N/A N/A N/A N/A N/A N/A
Total/weighted average 386.6 7.58% 7.18% 0.40% 9.23% 11.6 3.22%

NOTE:

  1. Projects under development. Book values for 772-776 Boundary Road: $7.6 million and 200 Holt Street: $13.6 million.

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Appendix E – Property Portfolio

CORE PLUS RETAIL FUND (CPRF) IND. IND. MKT CAP MKT CAP MCR VALUER’S WALE RENT
VALUE VALUATION RATE RATE CHANGE DISCOUNT REVIEWS
DATE 31 DEC 08 30 JUNE 08 RATE/ IRR
($M) (%) (%) (%) (%) (YEARS) (%)
Bunnings, Bendigo Vic 8.6 31 Dec 08 7.75% 7.00% 0.75% 9.25% 8.0 3.00%
Bunnings, Box Hill Vic 23.0 31 Dec 08 7.25% 6.50% 0.75% 9.00% 10.5 3.00%
Bunnings, Belconnen ACT 21.8 31 Dec 08 7.50% 6.75% 0.75% 8.75% 10.5 3.00%
Bunnings, South Nowra NSW 12.9 31 Dec 08 7.25% 6.75% 0.50% 8.75% 10.5 3.00%
Bunnings, Penrith NSW 23.6 31 Dec 08 7.25% 6.75% 0.50% 8.75% 10.5 3.00%
Bunnings, Stafford Qld 21.0 31 Dec 08 7.25% 6.75% 0.50% 8.75% 10.5 3.00%
Bunnings, Nerang Qld 17.3 31 Dec 08 7.25% 6.75% 0.50% 8.75% 10.5 3.00%
Bunnings, Kalgoorlie WA 6.6 31 Dec 08 7.50% 7.25% 0.25% 9.50% 8.0 3.00%
Home HQ Nunawading, Nunawading Vic 69.5 31 Dec 08 7.50% 7.25% 0.25% 9.25% 6.8 3.70%
Mentone Showrooms, Mentone Vic 23.7 31 Dec 08 7.50% 7.25% 0.25% 9.25% 4.7 3.12%
Menai Central, Menai NSW 37.0 31 Dec 08 7.75% 7.25% 0.50% 9.50% 4.2 3.27%
Home HQ Rothwell, Rothwell Qld 15.5 31 Dec 08 7.25% 6.50% 0.75% 9.00% 8.4 3.20%
Home HQ Ipswich, Ipswich Qld1 33.5 31 Dec 07 7.50% 7.50% N/A 9.25% 7.7 3.47%
Bluewater Square, Redcliffe Qld1 61.5 30 June 08 7.00% 6.75% 0.25% 9.25% 13.4 4.01%
Harvey Norman Centre, Mentone Vic1 57.7 31 Dec 07 7.50% 7.50% N/A 9.25% 11.0 3.16%
Harvey Norman, Dunedin New Zealand 15.1 31 Dec 08 9.00% 8.75% 0.25% 10.00% 4.5 2.89%
Foodtown, Auckland New Zealand 22.0 31 Dec 08 8.00% 7.50% 0.50% 10.00% 10.5 1.68%
Total/weighted average 470.3 7.47% 7.04% 0.43% 9.21% 9.0 3.23%

NOTE:

  1. Projects under development. Independent value represents value on completion. Book values for Home HQ Ipswich: $25.8 million; Bluewater Square, Redcliffe: $56.2 million; and Harvey Norman Centre, Mentone: $23.8 million.

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Appendix E – Property Portfolio

DIVERSIFIED PROPERTY FUND (DPF) IND. VALUE IND. MKT CAP MKT CAP MCR VALUER’S WALE RENT
VALUATION RATE RATE CHANGE DISCOUNT REVIEW
DATE 31 DEC 08 30 JUNE 08 RATE/ IRR
($M) (%) (%) (%) (%) (YEARS) (%)
46-50 Kings Park Road, West Perth WA 29.0 31 Dec 08 8.50% 7.75% 0.75% 9.50% 1.9 4.29%
181 St Georges Terrace, Perth WA 28.0 31 Dec 08 8.75% 7.50% 1.25% 10.25% 6.3 4.25%
385 St Pauls Terrace, Brisbane Qld 8.6 31 Dec 08 8.00% 7.50% 0.50% 9.25% 2.8 3.75%
400 Kent Street, Sydney NSW (75%) 43.5 30 Jun 08 6.88% 6.50% 0.38% 9.00% 7.8 3.68%
420 Princes Highway, Corio (Geelong) Vic 11.2 31 Dec 08 8.75% 7.75% 1.00% 9.75% 2.2 3.08%
615-619 Maroondah Highway, Mitcham Vic 5.0 31 Dec 08 7.50% 7.50% -% 9.25% 5.5 4.07%
EMI, 98-100 Glover Street, Cremorne NSW 9.6 31 Dec 08 8.00% 7.75% 0.25% 9.50% 2.2 3.50%
Melbourne Airport Business Park, South Centre 10.1 31 Dec 08 8.12% 7.75% 0.37% 9.50% 4.6 3.29%
Road & Jets Court, Tullamarine Vic
53 Berry Street, North Sydney NSW 21.8 30 Sep 08 7.25% 6.25% 1.00% 8.75% 2.0 3.87%
Foster's Portfolio, Abbotsford Vic 20.0 31 Dec 08 7.75% 7.25% 0.50% 9.25% 8.6 3.75%
22-28 Compark Circuit, Mulgrave Vic 6.4 30 Sep-08 8.00% 7.50% 0.50% 9.00% 4.2 3.00%
Coles Distribution Centre, Horrie Miller Drive, 44.6 31 Dec 08 7.13% 6.75% 0.38% 9.25% 19.4 2.75%
Perth Airport WA (25%)
Total/weighted average 237.8 7.72% 7.10% 0.62% 9.34% 7.5 3.59%

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Further information

David Harrison Joint Managing Director +61 2 8904 4033 [email protected] David Southon, Joint Managing Director +61 2 8908 4025 [email protected] Peter Roberts Chief Financial Officer +61 28908 4047 [email protected]

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Disclaimer

This presentation has been prepared by Charter Hall Group (Charter Hall Limited (ABN 57 113 531 150) and Charter Hall Funds Management Limited (ABN 31 082 991 786) (AFSL 262861) as the Responsible Entity for Charter Hall Property Trust (ARSN 113 339 147)). It is a presentation of general background information about the Group’s activities current at the date of this presentation, 24 February 2009. It is a summary and does not purport to be complete. It is to be read in conjunction with the Charter Hall Consolidated Half Yearly Financial Report filed with the Australian Securities Exchange on 24 February 2009. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. A reader should, before making any decisions in relation to their investment or potential investment in the Charter Hall Group, seek their own professional advice. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products.

Indications of, and guidance on, future earnings and financial position and performance are “forward-looking statements”. Due care and attention has been used in the preparation of forecast information. Such forwardlooking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

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