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Charter Hall Group (ASX:CHC) (Charter Hall or the Group) today announced its full year results for the 12 months to 30 June 2016. Key financial and operational highlights for the period are:
Charter Hall’s Group CEO and Managing Director, David Harrison said:
“Growth of 29% in FUM to $17.5 billion and 10.5% OEPS growth reflects the Group’s strategy focussing on accessing, deploying, managing and investing capital".
Property Investment Performance
During the period, Charter Hall Group invested a further $56 million (net) alongside our capital partners with the Group’s Property Investments increasing by $154 million to $1.1 billion, generating an earnings yield of 7.4% p.a. The active management and diversification of the Group’s Property Investments portfolio ensured the total portfolio occupancy remained strong at 98.6% and the Weighted Average Lease Expiry (WALE) stable at 8.8 years.
Mr Harrison said:
“We are proud to highlight that the Group’s Property Investments have consistently outperformed their respective benchmarks. The total property return from our Property Investments over five years of 16.0% p.a. has outperformed the MSCI/IPD Unlisted Wholesale Pooled Property Funds Index of 9.7% p.a. over the same period".
Property Funds Management
FUM increased $3.9 billion or 29% in FY16 to $17.5 billion, reflecting a 15.9% annual growth rate since June 2010.The continued growth was driven by $2.3 billion of net acquisitions, $1.1 billion of revaluations and $0.5 billion of development capex.
The high quality and diversified $17.5 billion portfolio comprises 296 properties, leased to 2,550 tenants delivering $1.3 billion of gross rental income.
Growth in the Group’s managed funds was driven by $1.5 billion of gross equity inflows across Charter Hall’s diversified equity sources. This equity was deployed into $3.0 billion of acquisitions and value accretive development opportunities. The Group’s platform also divested $0.7 billion of non-core assets to reinvest capital into higher growth opportunities.
Strategy and Outlook
The Group continues to focus on our strategy to access, deploy, manage and invest alongside our listed, retail and wholesale investors. The Group aims to create value and deliver sustainable and growing returns for investors. Our focus continues to be:
Absent unexpected events, our FY17 guidance is 8-9% growth pre-tax and approximately 2% growth post-tax on FY16 operating earnings per security. The distribution payout ratio is expected to remain between 85% and 95% of operating earnings per security post tax.