Charter Hall Group has posted a statutory profit of $226.5 million for the first half of the 2023 financial year (1H23), down 56.2 per cent from $517.8 million in 1H22.
Operating earnings fell 9 per cent, from $263.9 million as at 31 December 2021 to $239.9 million at the close of 1H23.
This was despite an improvement in return on contributed equity, up from 24.4 per cent to 28 per cent.
The underlying result produced distributions of 19.7 cps.
Total funds under management (FUM) rose 10.6 per cent, from $79.5 billion to $88 billion — driven by a 19 per cent increase in Property FUM, from $61.3 billion in 1H22 to $73 billion.
Property FUM growth was spurred by $4.3 billion in net acquisitions, positive revaluations of approximately $300 million, and capital expenditure (predominantly on developments) of $2.7 billion.
The total value of property investments increased from $2.85 billion in 1H22 to $3 billion, however returns were weaker, falling form 25.5 per cent to 10.4 per cent.
The value of gross equity allotted also decreased, down 25 per cent from $2.8 billion to $2.1 billion — helping to facilitate $7.9 billion in gross transactions (up 16.1 per cent, from $6.8 billion in 1H22).
“Charter Hall Group continues to deliver sector-leading returns for investors in our funds,” Charter Hall’s managing director and Group chief executive officer David Harrison said.
“Our focus remains on curating sustainable and resilient portfolios that deliver earnings growth for investors through all market conditions.
“This focus on performance for our investors and our co-investment alongside them continues to attract capital to the platform.”
According to Mr Harrison, Charter Hall would leverage $6.5 billion in available liquidity to drive further growth, citing “significant opportunities” in the company’s sale and leaseback pipeline, the $15.4 billion development pipeline, and “a number of new product initiatives”.
Barring “no material adverse change in current market conditions”, the group is projecting post-tax operating earnings per security of no less than 90.0 cps — 6 per cent growth on FY22.
ESG update
The company also issued an update on its ESG posture, revealing it has accelerated its commitment to net zero carbon emissions by bringing forward its target from 2030 to 2025.
This involves installing a further 600 kilowatts of solar during the period, taking the total solar platform to 47.8 megawatts.
Charter Hall has also reportedly completed an additional $900 million of sustainable finance transactions linked to the environmental performance and Green Building ratings of assets.
Moreover, the company has invested $700,000 in social enterprise and community initiatives, particularly to support communities impacted by floods.
