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Charter Hall achieves "solid" result in 1H

Samantha Hodge  |  27 Feb 2013Text size  Decrease  Increase  |  

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Samantha Hodge is a journalist with InvestorDaily, a Sterling publication.


Charter Hall Group (CHC) has delivered a "solid" half-year result for the six months ending 31 December 2012, increasing operating earnings by 4.6 per cent over the period.

The firm's profit after tax reached $29.9 million, up 52.7 per cent half-on-half, while funds under management (FUM) grew by 12 per cent to $10 billion due to the $1.3 billion of Australian office, retail and industrial property assets secured.

"Our strategic focus on accessing, deploying and managing equity invested in core Australian real estate has strengthened our business, delivering improved quality of earnings," Charter Hall joint managing director David Harrison said in a statement to the Australian Securities Exchange (ASX).

Charter Hall's property funds management division brought in 40 per cent of the group's earnings before interest, tax, depreciation and amortization at $12.2 million. The remaining 60 per cent, $21 million, was attributed to the firm's total property investment segment.

The firm plans to focus on its strategy to access, deploy and manage equity invested into core real estate sectors to create value and provide sustainable income and capital returns.

"We continue to see growing investor interest in Australian property, with domestic and offshore pension funds increasing their allocation to property from other asset classes," Charter Hall joint managing director David Southon said.

"In addition, this year has also seen a large increase in the Australian superannuation sector, with SMSF [self-managed super fund] and retail investors also seeking alternative sources of income due to falling term deposit interest rates," he said.