Charter Hall's Acquisition of Strategic Stake in HPI

Charter Hall Group (ASX: $CHC) and Charter Hall Retail REIT (ASX: $CQR) have jointly acquired a 14.8% strategic stake in Hotel Property Investments Ltd (ASX: $HPI) for a total consideration of $97 million. The acquisition makes them the largest securityholder in HPI. The funding for the acquisition was equally provided by CHC and CQR, with CHC using cash reserves and CQR utilizing cash proceeds from recent divestments.

Executive Commentary on Acquisition

Charter Hall's acquisition of a strategic stake in Hotel Property Investments Ltd aligns with our strategy to increase our focus on net lease convenience retail assets. The acquisition complements our existing portfolio of convenience net lease retail assets and is in line with our goal to redeploy proceeds from recent shopping center divestments. This investment reflects an annualized FY24 distribution yield of 5.7% and a 15% discount to HPI's last published NTA per stapled security. We are confident that this strategic move will contribute positively to our overall portfolio and reaffirm our previously announced EPS guidance for FY24.

Summary of Charter Hall's Acquisition and Outlook

Charter Hall Group (ASX: $CHC) and Charter Hall Retail REIT (ASX: $CQR) have acquired a 14.8% strategic stake in Hotel Property Investments Ltd (ASX: $HPI) for $97 million, making them the largest securityholder in HPI. The acquisition is in line with CQR's strategy to redeploy proceeds from recent divestments to focus on net lease convenience retail assets. This move reflects an annualized FY24 distribution yield of 5.7% and a 15% discount to HPI's last published NTA per stapled security. Both CHC and CQR have reaffirmed their previously announced EPS guidance for FY24. The acquisition is expected to enhance the overall portfolio and contribute to the company's goal of creating value and generating superior returns for its investor customers.