Charter Hall Long WALE REIT (CLW) Earnings Call Transcript & Summary

On behalf of the Board of Directors, it is my pleasure to welcome you all to the 2021 Annual Securityholders Meeting of Charter Hall Long WALE REIT. My name is Peeyush Gupta, and I'm the Chair of the Charter Hall Long WALE REIT Board of Directors. It is now midday and as the necessary quorum is present, I declare this meeting properly constituted and open. I would like to commence today's presentation with an acknowledgment of the country. Charter Hall is proud to work with our customers and communities to invest in, develop and create property assets on land across Australia and New Zealand. We pay our respects to the traditional owners, their elders past and present and value their care and custodianship of these lands. This afternoon, I will provide a brief overview of the REIT strategy, our evolution and growth since listing and some commentary on the performance and growth over FY '21. Our Long WALE REIT Fund Manager, Avi Anger, will then provide an update on the operational and financial performance for FY '21 and an update on the recently announced ALE transaction. We will then move to the formal business of the meeting and the resolution for your consideration. There is one resolution for consideration today, and that is the reelection of Ceinwen Kirk-Lennox as a Director. When the time comes, I will ask Ceinwen to say a few words and provide some personal background and reasons she believes she should be elected. I would now like to introduce my fellow Board members. Glenn Fraser, Non-Executive Director, who is Chair of our Audit, Risk and Compliance Committee; Ceinwen Kirk-Lennox, another Independent Non-Executive Director; Carmel Hourigan, an Executive Director and Charter Hall Group's CEO for Office; and David Harrison, Charter Hall Group's Managing Director and Group CEO. Also present online today and I welcome, Avi Anger, our Fund Manager for the Long WALE REIT; Darryl Chua, our Deputy Fund Manager for the Long WALE REIT; Scott Martin, Head of Long WALE REIT Finance; and Mark Bryant, our Company Secretary. Ryan McMahon, a partner from our auditor, PricewaterhouseCoopers, will also be available to answer any questions about their audit of the financial statements from security holders. So it's my pleasure now to address this meeting today. I'd like to spend some time discussing our evolution and the achievements, and then I'll hand over to Avi Anger to provide an update on the operational and financial performance and the recently announced ALE Property transaction. Since CLW's listing on the ASX in November 2016, management and Board have been focused on executing the REIT's strategy of providing investors with stable, secure and growing income and capital growth through an exposure to a portfolio of a long-weighted average lease expiry, or WALE. Today, CLW is Australia's largest diversified long WALE REIT. CLW is included in the ASX 200 and is a top 10 listed A-REIT by market capitalization. Since listing on the ASX almost 5 years ago, CLW has delivered long-term profitable growth, consisting of the 12% compound annual return on equity, 26% NTA per security growth, representing an annual growth rate of 6.8% and 3.7% compound annual distribution per security growth. In another year of strong operating performance, CLW has delivered stable and secure income and capital growth in FY '21. Pleasingly, CLW delivered on its upgraded guidance, reporting operating earnings of $0.292 per security, up 3.2% from FY '20 and distributions of the same amount, representing a 100% payout ratio. This result was delivered against the backdrop of COVID-19 and the continued disruption that the pandemic caused the economy and the property sector. We expect this performance to continue in FY '22 with guidance of no less than 4.5% growth in operating earnings per security over FY '21. Since CLW's IPO in November 2016, the management and the Board have been focused on growing the portfolio in a measured and sustainable way that has improved the quality and diversification of our portfolio. We have actively managed the portfolio to increase both asset and tenant diversity while ensuring the WALE continues to be maintained and extended. Today, CLW has a best-in-class $5.7 billion diversified real estate portfolio. Since FY '20, the REIT has invested a further $1.5 billion in portfolio-enhancing diversified properties with strong tenants across office, industrial and logistics, diversified long WALE retail, hospitality, convenience retail and social infrastructure sectors. We believe the quality of these properties and tenants will provide growing income to our investors in the future. The acquisitions undertaken since FY '20 expanded the REIT's portfolio to 472 properties, further diversifying the REIT's exposure to any 1 single asset. The acquisitions added new investment-grade tenants and further increased the portfolio's exposure to key Eastern Seaboard markets of Sydney, Melbourne and Brisbane. The REIT now has 77% of its portfolio in these key markets. The quality and resilience of the portfolio was also recognized through a significant net valuation uplift of $523 million, representing a 12.1% uplift for FY '21. Strong valuation gains were realized across the portfolio including significant increases from recent off-market transactions, and demonstrate the benefit that our investors receive from CLW being part of the broader Charter Hall Group platform. 47% of the income of the REIT now comes from triple net lease properties. This is an important feature of our portfolio, given that under a triple net lease structure, the tenant is responsible for all outgoings, maintenance and capital expenditure. This provides CLW investors with a portfolio that requires minimal capital investment to maintain, thereby improving returns. While we have grown the REIT through equity raising and acquisitions, we have maintained a focus on long leases to high-quality tenants. At IPO, CLW's WALE, our lease expiry, was 12.3 years. Today, through acquisitions and re-leasing activity, CLW has a longer 13.2-year WALE, providing security of income and insulation against market shocks. Importantly, the growth in the portfolio has not been growth for growth's own sake. It has delivered growing earnings and growth in capital value. As a result of active management and selective acquisitions, we upgraded our earnings guidance during the year. In addition to earnings growth, the focus on long WALE properties leased to high-quality tenants also saw the net tangible assets of the REIT increase 16.8% from $4.47 per security as of 30th June 2020 to $5.22 per security at 30th June 2021. The growth we've been able to deliver is a function of diversification across tenants, properties and industries and a focus on leasing properties to leading tenants in predominantly nondiscretionary industries. CLW has a high-quality income stream generated from blue chip tenants, with 99% of the tenants of our REIT consisting of government, ASX-listed multinational or national businesses. Our largest tenants are the government, Telstra, BP and Endeavour Group. Our properties are leased to 80 tenants across Australia and New Zealand and diversified across office, industrial, diversified long WALE, retail, hospitality, convenience retail, social infrastructure and agri-logistics sectors. All of the leases in our portfolio have annual rent increases, providing strong year-on-year income growth. Our income is insulated from increases in inflation, with 39% of leases across our portfolio linked to CPI. The remaining 61% of leases had fixed annual increases that averaged 3.1%, providing in-built growth in income across the portfolio. The Board also remains committed to ensuring we retain a prudent capital management position. Whilst the nature of individual assets within the REIT is such that they could support high gearing, we continue to maintain gearing at a level that does not impact on REIT stability. As the portfolio has grown, we have expanded our banking relationships to introduce new lenders to the REIT to access debt capital markets and to ensure diversity of debt providers. We also think carefully about how we raise equity to fund growth. We look to ensure that all security holders are able to participate in CLW's growth and not have their holdings diluted. For retail investors, early in the financial year, we employed a security purchase plan that was more than 6x oversubscribed. As a Board, we elected not to scale that back significantly, opting instead to allow as many retail investors as possible to take advantage of that offering and to increase their percentage ownership of CLW. Subsequently, we balanced this with the placements to institutional investors. Following that, we have utilized entitlement offerings to ensure balanced participation and access to new securities for all security holders. We are very focused on implementing sustainability initiatives across our portfolio. This includes climate resilience, social and community policy and responsible business and governance. For the FY '21 period, some of the REIT's key highlights include: an average of 5-star NABERS Energy and water ratings, NABERS stands for the National Australian Built Environment Rating System. It's one of the well-recognized rating systems in our industry. And a 4.3-star NABERS Indoor Environment rating across the office portfolio. We had 28 Green Star performance-rated buildings with an average of 3-star Green Star performance across office properties and 2-star Green Star performance across industrial. We were recognized by the Global Real Estate Sustainability Benchmark, or GRESB, of a high level of corporate governance and public disclosure by CLW. Importantly, CLW is committed to environmental resilience and governance, with a road map to align with the Task Force for Financial Disclosure recommendations and climate change adaptation plans across its portfolio. This includes a net-zero target for Scope 1 and Scope 2 emissions by 2030 with a focus on renewable energy sources, particularly solar. Good governance is also an important element of sustainability and is something your Board of Directors are keenly focused on. Our role as Directors is to ensure management adhere to the strategy of the REIT. The Independent Directors maintain oversight of the services provided by the Charter Hall Group to CLW, ensuring a high level of service that is consistent and appropriate for the fee it charges. Within this capacity, we regularly engaged external consultants to benchmark these fees to ensure that they're appropriate and consistent with market standards and that CLW unitholders are receiving value for money. As Directors, we are also responsible for approving acquisitions and disposal. We are always focused on ensuring changes to the portfolio are in the long-term interest of CLW security holders and any acquisitions are consistent with the REIT's goals. As Directors, we also look to set appropriate policies to guide the REIT in areas such as workplace health and safety, debt limits, hedging policies and portfolio diversification. We also appoint the external auditors to audit the accounts, and then it is our responsibility as Directors to approve the REIT's financial statements. In fulfilling these duties, I would like to assure investors that your Directors are ever mindful of their responsibilities to act in the interest of all security holders, and we endeavor to ensure CLW continues to provide investors with stable and secure income and the potential for both income and capital growth through an exposure to a portfolio of high-quality properties and tenants with a long WALE. Finally, I would also like to acknowledge that these achievements I have outlined today in improving asset and tenant diversification, increasing the earnings through selective acquisitions and expanding our banking relationships have all been achieved as a result of the management of the REIT by the Charter Hall Group. Investors in CLW receive the benefit of the quality and experience of Charter Hall's capabilities, including acquisitions, asset management, property management, development, finance, legal and treasury services. I will now hand over to Avi Anger, the Fund Manager for the Charter Hall Long WALE REIT to review the year's financial and operating performance, to discuss the outlook for FY '22 and provide some information on the proposed acquisition of the ALE Property Group. Avi?

Thank you, Peeyush. I'm pleased to report that we completed a year of strong operating performance, delivering operating earnings per security of $0.292 and delivering distribution per security of the same amount. This represents growth of 3.2% over FY '20. Consistent with the FY '20 results, there was negligible impact on the REIT's FY '21 financial earnings as a result of the COVID-19 pandemic, given the very small exposure to tenants entitled to rent relief. Our exposure to major national tenants in nondiscretionary and defensive industries means CLW is well insulated against mandated COVID-19 shutdowns, and we expect this will continue to be the case in the future. In FY '21, CLW is one of the few A-REITs that was able to give earnings guidance at the start of FY '20, upgrade that guidance during the financial year and deliver on that guidance at the end of FY '21. Our NTA at 30 June was $5.22 per security, up 16.8% from $4.47 at 30 June 2020. CLW has a long WALE of 13.2 years, providing security and continuity of income for our investors. Over the year, we delivered $523 million of net valuation uplift for our investors, demonstrating the quality and resilience of the portfolio. We achieved valuation uplift across our portfolio, including our pub portfolio, BP Australia and New Zealand portfolios, agri-logistics and Telstra Exchange portfolios, vindicating our focus on long WALE real estate. 47% of the income of CLW comes from triple net leases. And during the year, we have completed significant capital management achievements, including being assigned a Baa1 investment-grade rating by Moody's. Following this, we're able to access debt capital markets with $700 million of long-term, low-cost Australian dollar MTN debt issued, and we achieved the lowest spread for a BBB+ REIT issuer since the GFC. Pro forma balance sheet gearing at 30 June was 31.4% within our target range of 25% to 35%. I would now like to discuss events that have taken place post balance date and spend some time discussing the proposed acquisition of ALE Property Group. On 20 September 2021, CLW and Charter Hall Managed Trust on behalf of Hostplus announced that they had entered into a scheme of arrangement, a Scheme Implementation Deed, with ALE to acquire all the securities of ALE via a scheme of arrangement subject to certain conditions. CLW is undertaking the transaction alongside Hostplus, its existing capital partner in the long WALE investment partnership, and each consortium member will own 50% of LEP's assets post-transaction. The transaction represents a rare opportunity to acquire a large scale, materially under-rented portfolio of higher-quality hubs. The transaction is designed to provide LEP security holders with an attractive premium for their securities and ongoing participation in the benefits associated with an investment in CLW. The transaction also represents an opportunity for CLW security holders to acquire a large-scale materially under-rented portfolio of high-quality hospitality assets. Features of the portfolio include highly strategic and well-located properties, with 99% of the properties being located in metropolitan locations, 94% along the East Coast of Australia. The portfolio comprises approximately 915,000 square meters of land in prime locations across Australian capital cities, with low site coverage of 25%. And the portfolio has potential mixed and alternative use opportunities in the long term with very strong embedded land value. This -- the Endeavour portfolio is also a high-quality tenant counterpart. With -- the LEP portfolio is a national portfolio of 78 high-quality pubs leased to Endeavour Group, which is Australia's largest pub operator and liquor retailer by Dan Murphy's and BWS stores. This increases CLW's exposure to Endeavour Group as a tenant, which has a current market capitalization of approximately $12 billion. And I might add that across the CLW portfolio, we like to partner with the best-in-class tenants in their different industries, and Endeavour is certainly one of those. And it's a highly resilient tenant customer with 100% of rent received during COVID. The leases have attractive lease structure with 95% of leases being triple net. The WALE has -- the portfolio has a way of 7.5 years with 14-year options and annual CPI increases market reviews at the end of each option. And there's a very high renewal probability given the strategic importance to Endeavour Group of these properties. And some of the properties in the portfolio, they've been operating these pubs for in excess of 60 years. The portfolio has a strong annual rental growth profile with annual rent escalation linked to CPI, predominantly uncapped, and the current passing rent being considered by independent valuers appointed by LEP to be 37% below market levels. And an open market review for 95% of the portfolio will take place in November 2028. We believe the transaction is attractive and designed to deliver benefits for both LEP and CLW's security holders. The transaction is consistent with CLW's strategy to invest in high-quality real estate assets that are predominantly leased to corporate and government tenants on long-term leases. And we are pleased to be able to continue our partnership with Hostplus, a leading Australian superannuation fund, in investing in high-quality pubs and liquor retail outlets, leased to Endeavour Group. Following the completion of the ALE transaction, CLW will continue to be the largest and most diversified long WALE REIT with an estimated pro forma market capitalization of approximately $3.8 billion. Key metrics of CLW's portfolio post-transaction will include a diversified portfolio of 550 properties, portfolio value post-transaction of $6.5 billion, portfolio occupancy of 98.4%, a long portfolio WALE of 12.6 years, weighted average rent reviews across the enlarged portfolio of 2.9% and 51% of the portfolio consisting of triple net leases. The portfolio -- properties in the portfolio will feature a blend of annual lease review structures, both fixed and CPI. The average fixed reviews in our portfolio are 3.1% whilst our CPI-linked leases provide a hedge against the potential of an increase in the inflation in the future. Following the ALE transaction, our portfolio of long WALE properties continues to be leased to high-quality tenants, including government, Telstra, BP, Endeavour Group, Ingham's and Coles. The ALE acquisition increases; CLW's exposure to Endeavour Group, Australia's largest pub operator, while maintaining a high-quality and diversified tenant base. Within our portfolio, approximately 99% of tenants are ASX-listed government, multinational or national corporations, with the vast majority of those tenants operating in nondiscretionary industries. This provides CLW with resilient and defensive sector exposures. For example, the government, including the ATO and Australia Post, are an example of our nondiscretionary tenant exposure. We also have a high proportion of tenants operating in the nondiscretionary grocery and food sectors, such as Woolworths, Coles, Ingham's, Arnott's and Metcash. The value of the resilient and defensive nature of our portfolio was evident during the recent COVID-19 pandemic where the impact on CLW's FY '21 financial earnings was negligible given the very small exposure to tenants entitled to rent relief. Finally, taking into account the proposed ALE acquisition, I'd like to reaffirm our FY '22 earnings guidance, which is based on information currently available and barring any unforeseen events of further 19 COVID -- COVID-19 impacts, CLW provides FY '22 operating EPS guidance of growth of no less than 4.5% over FY '21 EPS of $0.292. In closing, I'd like to thank the Board for their ongoing guidance and support in the running of CLW and also thank you, our security holders, for your trust and support. We remain focused on delivering a long WALE portfolio leased to high-quality tenants and providing investors with both income and capital growth over the long term. I would now like to hand back to our Chair, Peeyush, to conduct the formal business.

Thanks, Avi. As today's meeting is being conducted online, I would like to ensure you are familiar with the way that we will proceed today. There is 1 resolution for today's meeting, which we will come to shortly. Security holders may vote and submit questions using the online platform. The resolution to be put to the meeting today will be decided on a poll. I now declare the poll open. For those security holders participating in the meeting via the online platform, you can cast your direct vote using the electronic voting card that you received when you validated the registration. If you have not, at the bottom of the web page, you should see that there are 3 boxes: Get a Voting Card, Ask a Question or Download. To register to vote, click on the "Get a Voting Card" box at the top of the web page or below the videos. You will need to register by providing your details as either an individual or proxy. Once you have registered, your voting card will appear with today's resolution to be voted on. Security holders and proxies can only submit a full vote or a partial vote. You can move between the 2 tabs by clicking on the full vote or partial vote at the top of the voting card. Once you're finished voting on the resolution, scroll down to the bottom of the box and click the Submit Vote button. If you want to ask a question, you will only be able to ask a question after you have registered to vote. [Operator Instructions]. And if you would like to view the Notice of Annual General Meeting, click on the Download button. With these procedural matters out of the way, I'd now like to move to today's formal business. I now table the Notice of Meeting dated 27 September 2021, which contains the resolution up for consideration today. I'll ultimately skip...

Those are the questions.

Yes, we did. Before we move to the formal resolutions, we might just pause and see if we have any questions from our security holders. First of all, I think we'll take any questions from the phone lines. So moderator, are there any questions on the line?

Thank you, chairman. At this time, we're showing no questions via the phones.

Okay. Well, next turn to any questions submitted online and Avi, are there any such questions?

Yes, there are, Peeyush. We've received a couple of questions online. Would you like me to read them out?

Sure.

The first question from [ Chun Qui Tan ]. In July 21, CLW would purchase Terrey Hills Tavern in Sydney for about $39.8 million. With Endeavour taking the leasehold interest in Charter Hall freehold, with $26.3 million for the freehold with a new 15-year lease to Endeavour covering the remainder of the cost. No announcements were made for this acquisition. Would the Board be able to shed some light on the above purchase in terms of acquisition yield and lease terms? Any option beyond 15 years? Yes. I certainly can provide some details on that transaction. It's a relatively small transaction, particularly given we only own half of LWIP, so we don't -- for very small transactions, we don't tend to make separate ASX announcements. But the metrics on that transaction are it's 4.25% yield, 15-year triple net lease. All the lease terms are consistent with the rest of our Endeavour portfolio. And there are options, one, 15-year or 10-year options. Moving on, the same person asking a follow-up question. With regards to penny takeover of ALE via LWIP, based on the presentation slides, it appears there will be not be AGM needed to be conducted to CLW holders. Is that correct? If you have questions pertaining to the takeover, which is the most substantial in CLW history, where can we clarify questions. The answer to that question is correct. There will not be an AGM for CLW security holders. We welcome questions and engagement for investors, and we welcome -- we ask that you contact our Investor Relations department, and they can certainly answer any questions in relation to that transaction. A further question we've just received. CLW is a significant larger entity, from the time of inception at both a diversified portfolio of long WALE assets leased to government, blue chip tenants with in-built inflation hedge. CLW is currently trading at a 5% discount to book value and yield WALE of 6% relative to other long WALE peers that are trading at premium and lower yields. What are the Board's view on such underperformance due to repeated raisings to fund CLW's acquisitions?

All right, let me take that question. So, look, thank you for that question. As we've covered in our remarks, our focus is on building out a diversified, high-quality, long WALE, strong tenant portfolio. And ultimately, I think the results of that are seen in returns. And if you were to look at our longer-term performance measured on a total return to shareholders basis, relative to comparable peers and so on, you will see that CLW actually has a very good track record. It is true that at the moment, CLW is trading below its NTA. And that is the source of some concern to us, albeit that we are not directly in charge of daily security prices. I think there are -- there have been times -- significant periods of time when the REIT has traded above its NTA as well, at a premium, and also there have been times when we've traded at a discount. Now longer term, we think that the quality, the resilience and the longer-term earnings profile will speak for themselves and that security holders will be rewarded, as indeed they have been since the REIT was listed. Other questions, Avi?

Yes. The next question is -- sorry, I'm just catching up with the questions here. Same person again. Look-through gearing is now over 39% post-ALE. What's the view on gearing levels? Do you want me to answer that? Or do you want to answer?

No, I'm happy to answer that. You can supplement, Avi. Look, I mean gearing levels are obviously something that we keep a close eye on and monitor. We do have policy guidelines. They are not fixed in stone. They are guidelines. The reason that we are likely to go over our policy guideline in the short term is because of this contemplated transaction of ALE that Avi have spoken about. On a forward-looking basis, we think that we will be well within guidelines in due course as the normal revaluations and income stream increases from currency reviews, rent reviews come through. So we are comfortable with our position. It's a temporary case that we were exceeding our policy guideline, but not material. Is there anything else you'd like to add to that Avi?

No, I agree. I think that we're comfortable in the current range. The nature of the properties we have being long WALE, high-quality tenants supports the level of gearing, and we're well clear of any covenants. And we've got a very strong Baa1 Moody's credit rating supporting that. So this has also endorsed our current position. There is some further questions. Forward-looking rental reversion outlook, any lights to share with holders? Well, I think the light to share in relation to rental reversion is just that we, I think in particular with the ALE portfolio, well, we're at 37% below market. So there's a rental conversion coming on that portfolio leading into the 2028 overview. And on the balance of the portfolio, I think that the other important factor we're seeing at the moment is very strong CPI nationally, which is going to result in some strong CPI prints, and more than half or about half our portfolio, excluding LEP, is CPI linked. So we will see some strong rental reversion with rent reviews coming through on that basis. We have one further question from Andrew Wilkinson, who said he's the previous Managing Director of ALE. What steps does CLW intend to take to enhance returns on the ALE portfolio noting 3.5% acquisition cap rate, the rising bond rates and the recent court ruling? Well, I'll start by saying it's not a 3.5% acquisition cap rate in the traditional sense, just 3.5% passing yield. We're aware that the properties are significantly under-rented. And we think there's good underlying -- very strong underlying value in the portfolio, as we've articulated in our presentation to the market and subsequent commentary. The portfolio's got a lot of embedded value, very high land proportion, very low building area on the site at 25%. Site coverage, significantly under-rented with the ability to access that rental reversion in the future, and an excellent counterparty tenant. And we're seeing transactions in the market for pubs are very strong. And we think that it's a very attractive portfolio and ability for us to continue our existing partnership with Endeavour Group, we really have a $1.3 billion portfolio. So we're very comfortable with that acquisition and the pricing. We are -- in terms of rising bond rates, we're reasonably well protected. We've got a number of hedges and long-dated debt across our portfolio. And the recent court ruling does not impact on our underwrite in any material way at all. So there's no real impact on the recent court ruling on our transaction.

Yes, Avi, I'd like to just reemphasize the point that you made in passing that we already have an existing productive relationship with the Endeavour Group in our LWIP portfolio, where we are landlord to 54 of their pubs. This transaction widens that up to 72. But the fact that we enjoy, we know the tenant, they know us, we have productive relationship with them should give us all some comfort that once the transaction is completed, we might be able to sit down and explore with our tenant ways in which value can be created for the benefit of all parties.

And we've got -- we might -- there's 1 further question from this one person asking a lot of questions. Follow-up from Andrew's question, what steps can CLW undertake to unlock value in ALE before that rental reversion is lifted after 2028?

Well, I think we've already addressed that question.

Yes.

Our first focus is in completing the transaction. Once that transaction is complete, I'm sure we will -- the management team will be sitting down with our tenant to see what opportunities there are, but one step at a time. We have to complete the transaction first.

Okay. Well, I think that's it, Peeyush. We've done all the questions.

Okay. Thank you very much, Avi. Moderator, were there any other questions that have come through the phone line?

Thank you, Chairman. Confirming no further questions via the phones.

Okay. Thank you. Well, thank you for all those questions. They were good questions, and I hope we've been able to address them to your satisfaction.

So I will now proceed to the formal business of the meeting. A copy of the Notice of Meeting would have been made available to you by e-mail or, as previously mentioned, is available to view on the web page. I will now take the Notice of Meeting as read and move to resolution 1 in the Notice of Meeting, which is the reelection of the Independent -- our Independent Director, Ceinwen Kirk-Lennox. And I would like to ask Ceinwen to say a few words, detailing her background and experience for the benefit of security holders. Ceinwen?

Thank you, Peeyush. I would like to take the opportunity ahead of the vote to provide some background to support my eligibility for the reelection as a Non-Executive Director of the Charter Hall Long WALE REIT. I joined the Board at IPO in 2016. And what I'd like about the Charter Hall Long WALE REIT's Board is the balance of skills and experience it provides. Like my other Non-Executive Directors, I've honed my property skills over the last 35 years. The first with Lend Lease, where I was responsible for both businesses and senior functional roles across development, design and construction, facilities management, property management, communications, global account management and including Executive Director roles on the Lend Lease Superannuation Fund, and focus Bovis Lend Lease Asia Pac. Whether by design or performance, I found myself offered roles that required significant stakeholder engagement, change management and ultimately, social and community sustainability. And more importantly, the governance that is required to support it. In recent years, I continued to play a role in both private and public sectors, listed and unlisted companies, in both Board and advisory roles, and presently sit on the Greater Sydney Parklands' Board, which is responsible for over 6,000 hectares of parks for the people of Greater Sydney. I'm an expert reviewer for major projects within Infrastructure South New South Wales. I'm a member of the Catholic Archdiocese of Sydney's Property Committee. The diversity of roles means I stay connected with the industry at many levels. These roles require objectivity, independence and a constructive approach to support the stakeholders involved. I continue to apply these skills I've accumulated to my role as Non-Executive Director for Charter Hall Long WALE REIT and in representation of all security holders. I ask you to consider voting in favor of my reelection as a Non-Executive Director of the Charter Hall Long WALE REIT. Thank you.

Thank you, Ceinwen. As explained in the Notice of Meeting, only the Directors or shareholders of CH WALE, being the Charter Hall Group, may appoint the Director of CH WALE. Accordingly, it is noted that today's resolution is advisory only and nonbinding. Notwithstanding this, Directors will, of course, give due consideration to the results of the resolution. This resolution is an ordinary resolution, and as you can see is displayed now on your screen. Security holders who have not already voted or submitted their vote via proxy can now review the resolution, which should be currently displayed on your screen. I'll give you a few moments just to be able to read the resolution. And we'll now ask for the respective proxy votes that we have received to be displayed on your screens. They should now be available to you to see. If you haven't already done so, I would encourage you to submit your vote now. [Voting]

And as there is no other business to be considered, I now declare the formal business of the meeting closed. The poll will remain open for a further 5 minutes, and security holders who have not already voted may lodge their online votes during that time. The results of the poll will be made available to the ASX and put up on our website later today. Thank you very much for your attendance today and for your ongoing support of CLW. Thank you.