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INVESTOR CENTRE

Investor Information

HPI provides investors with:

  • An attractive annualised Distribution Yield underpinned by long term leases with strong contracted income growth;
  • Exposure to the attractive Pub real estate sector and potential capital growth of the properties in the Portfolio; and
  • Additional growth potential through the acquisition of assets that meet HPI's investment criteria

 

High quality Portfolio predominantly leased to the Australian Venue Company/Coles group joint venture and to Australian Leisure & Hospitality, a joint venture 75% owned by the Woolworths group:

  • The Portfolio comprises Pubs, on-site Specialty Stores and an accommodation hotel located throughout Queensland, South Australia and New South Wales.
  • The pub tenants provide approximately 93% of HPI’s rental income. The remaining rental income is derived from the accommodation and specialty tenants leasing the On-site Specialty Stores including franchisors and franchisees of Quest Apartments, Domino’s Pizza, Nightowl Convenience, Pizza Hut, Subway and The Good Guys.

 

Longstanding relationship with Coles underpinned by the strategic value of liquor licences:

  • In Queensland, the holder of a commercial hotel licence may sell packaged liquor for off premise consumption from the hotel site or from bottle shops detached from the main hotel premises.
  • Coles previously operated the pubs in Queensland to enable their retail packaged liquor strategy and has recently entered a Joint Venture arrangement with Australian Venue Company (AVC).  This Joint Venture allows Coles to focus on their packaged liquor business with AVC providing the expertise to operate the pubs.
  • All of the Pubs in HPI’s Portfolio are leased to the AVC/Coles Joint Venture except for one Pub which is leased to Australian Leisure and Hospitality

 

Stable income stream generated by long term lease profile with attractive terms:

  • Under the Leases, the tenants have options to extend the lease period for up to 30 years depending on the individual lease.
  • HPI retains the rights over the liquor and gaming licences in respect of a majority of the Pubs.
  • In the majority of cases, the original gaming authorities associated with the Pubs revert to HPI typically at the end of the lease term. In addition, HPI typically has the option to purchase any additional gaming licences used in respect of the Pubs.

 

Strong organic income growth and additional future growth opportunities:

  • Strong rental income growth generated with a majority of the Leases containing minimum rental increases of the lower of 2 times the average 5 year historical CPI and 4% per annum.