Charter Hall Delivers Strong Results for 1H16
Charter Hall's net tangible assets net tangible assets grew 8% or 22 cents per share
The property manager Charter Hall Group (ASX:CHC) released a solid half year result with statutory profit up 259.6% to $143.5 million.
The group lifted its operating earnings by 26.3% to $61.2 million underpinned by strong portfolio performance.
Charter Hall’s Managing Director and Group CEO, David Harrison commented further on the results: “The active growth and management of our Australian platform over the past six months has delivered a 9.5% increase in operating earnings per security and a 17% increase in our Australian portfolio, which now totals $15.9 billion.”
Charter Hall’s business structure focuses on two key income streams, which are the Property Investment income and earnings from Property Funds Management.
The group spent $97 million in Property Investments, which expanded to $1.13 billion after an increase in net revaluation of $89 million. The portfolio generated a 7.2% yield, boosted by diversification and exposure to high quality assets with strong tenant covenants and lease durations.
The group achieved 17% growth in its Property Funds Managements segment to $15.9 billion during the half year, driven by activity in the industrial sector coupled with $170 million earned from 1H16 acquisitions and positive valuation uplifts throughout all sectors. Subsequently, the segment’s EBITDA margin was widened from 39.7% to 41.8%.
The group’s net tangible assets grew 8% or 22 cents per share to $2.98 per share.
Strategy and Outlook
The group aims to continue to grow and deliver strong fund performance for investors across all equity sectors, along with securing high quality assets within the core property sectors.
Charter Hall upgraded its guidance for FY16 as the group expects its earnings per share to grow 8-10% over the year.
CHC rose 0.67% since the announcement to $4.49 (as at 10:54 AM AEDT).
Author: Matthew Dibb
Feb 25, 2016
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.