The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
RetailTed TabetThu 20 Aug 20

Property Plays Bolster Charter Hall Profits

ffda74a4-1a80-4925-9222-9203154a69d0

Charter Hall has seen its funds under management grow by $10 billion, and has reported healthy earnings over the financial year—allowing it to lift distributions for the coming year.

The listed property group reported a lift in operating earnings of 46.3 per cent to $322.8 million, while statutory profit increased by 47 per cent to $345.9 million on 2019.

Charter Hall boosted distributions by 6 per cent to 35.7c per share after securing $5.1bn of equity and transacting $8.3 billion over the year.

The group increased its funds under management by one-third to $40.5 billion by the end of the fiscal year, which has been furthered by an additional $1.3 billion in recent weeks.

Harrison said Charter Hall, now in its fifteenth year as a listed company, had reaped the rewards in forging successful partnerships across its investor and tenant base, which had created continued access to strong equity flows across all equity sources.

“These strong equity flows have translated into continued platform growth [with] our ability to source product off-market and through our development pipeline have been a key part of the group’s success,” Harrison said.

“Momentum in sale and leaseback transactions continues to grow across corporate Australia and the group is well positioned to take advantage of this opportunity to secure strategically aligned assets and portfolios.”

▲ Charter Hall’s strategy of investing in Long WALE assets has allowed it to remain bullish across the logistics and commercial sectors. Image: Chief executive David Harrison.


Charter Hall completed $1.7 billion worth of developments over the year and says a key driver will be its $6.8 billon pipeline, the bulk of which had been de-risked through pre-leases and fixed price building contracts.

Underpinning Charter Hall’s resilience through the Covid-19 disruption has been a swathe of large portfolio purchases over the financial year which in turn has enabled the group to foster new partnerships with investors and create tenant partnership funds.

Telstra offloaded a $700 million stake in a newly-created property trust, containing 37 of the telco’s higher value exchange properties, in August of last year to a consortium of investors led by Charter Hall.

In December, the group picked up a 49 per cent interest in a portfolio of BP sites worth $1.7 billion in total and comprising 225 convenience retail properties.

It has also struck deals with Ampol—as part of a $682 million 49 per cent stake over 203 freehold petrol stations—as well as agreements with Owens-Illinois and Qube.

Harrison said the pandemic had continued to drive accelerated demand for industrial and logistics assets, which the company had actively pivoted towards.

Flows into its funds also averaged $95 million a month over the fiscal year with wholesale pooled and partnership funds continuing to see inflows.

Despite a nervous start to earnings season, Charter Hall became one of few property players to release guidance, predicting a post-tax operating earnings per security of about 51 cents per share, and distribution per security guidance of 6 per cent growth.

“Based on no material change in current market conditions, funds under management growth already achieved in FY21 and assuming the Covid-19 operating environment does not deteriorate markedly from here, FY21 guidance is for post-tax operating earnings per security of approximately 51.0cps,” Harrison said.

Charter Hall shares gained 6.5 per cent at the close of day Thursday.

IndustrialAustraliaFinanceSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/portfolio-plays-bolster-charter-hall-earnings