Charter Hall Upgrades Its Fiscal 2019 Guidance On The Back Of The Strong Half-Year Performance

CHC

Charter Hall Group (ASX: CHC) reported 13.0% growth in operating earnings post-tax to $107.5 million for the half year ended 31 December 2018. More interestingly, the Group has upgraded its previous FY19 guidance for post-tax operating earnings per security growth of 8- 10% over FY18 to 14%-17% growth in post-tax operating earnings per security over FY18.

The news sent the stock price to surge up by 2.112% in early trade to stand at $8.945 on 22 February 2019 (12:41 PM AEST). 

The Group’s Statutory profit after tax was $133.5 million in H1 FY19, an increase of 10.7% on previous corresponding period. EBITDA grew by 19.0% to $134.2 million driven by the expansion of the property fund management platform. This translates a growth of 22.4% or $5.2 billion in Funds Under Management (FUM) of $28.4 billion as at 31 December 2018, driven by the $1.6 billion acquisition of Folkestone, positive revaluation of $700 million and capex spend on developments of $500 million. On the basis of asset type diversification, 46% of $28.4 billion FUM comprises of Office Sector that stands at $13.1 billion, followed by Industrial sector which is 25% of FUM valued at $7.1 billion.

H1 FY19 Operating Earnings Per Share post-tax grew 13% to 23.1 cents per share while the Distribution Per Share declared by the company was 16.5 cents per share, up 6.0% on H1 FY18. It represents the dividend payout ratio of 72% lower than 76% as announced in the half year ended 31 December 2017.

Charter Hall’s Managing Director and Group CEO, David Harrison stated: “Following an active six months, the Group is pleased to announce another positive result achieving growth across all key metrics to deliver 1H FY19 OEPS growth of 13.0% to 23.1cps.”

Group’s investment management revenue was up 27.5% to $104.8 million in 1H FY19 compared to the previous corresponding period. It reflects the continued momentum in FUM driving funds management fee growth of 21.6% with transaction and performance fee earned 33.8% higher due to the active acquisition and divestment program.

Sponsored ad by Kalkine

Charter Hall’s Property Funds Management portfolio is well-diversified, having grown to 820 properties, 3,157 tenancies, a WALE of 8.0 years and delivering more than $1.8 billion of gross rental income. Moreover, the group has witnessed $1.2 billion of gross equity inflows comprising of $743 million n raised in Wholesale Funds and Partnerships, $305 million raised in Direct Funds and $172 million in Listed Funds.

On the balance sheet front, the company continued its focus on capital management and secured new and refinanced debt facilities of $4.1 billion during the period with no material maturities in Fiscal 2020. The company maintained its gearing at a modest 5.5% with a weighted average debt maturity of 7.1 years. Further, the Group confirmed the financial flexibility and substantial funding capacity across the fund platform with $2.6 billion of available liquidity and cash on hand of $115 million as at 31 December 2018.

Moreover, the Group expects its distribution payout ratio to range within 70% and 95% of operating earnings per security post-tax. FY19 guidance reportedly includes a $40 million accrual for the CHOT performance fee.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here