Charter Hall confirmed record growth on Wednesday, reporting a 29 per cent boost in funds under management (FUM) to $52.3 billion, making it the largest sector-diversified commercial property portfolio in Australia.
Charter’s current portfolio comprises 1,388 properties, with a lettable area of 9 million square metres and delivering almost $2.5 billion in net rental income per year.
According to the company’s financial statement, the group recorded a statutory profit after tax attributable to stapled securityholders for the year to 30 June 2021 of $476.8 million compared to a profit of $345.9 million for the year ended 30 June 2020. Operating earnings amounted to $284.3 million for the year to 30 June 2021, compared to $322.8 million for the year ended 30 June 2020, a decrease of 11.9 per cent.
The company also reported $2.1 billion of divestments over the financial year, more than double that of previous years. A total of $8 billion acquisitions also exceeded activity in prior years, resulting in net acquisition growth of $5.9 billion.
“All our sectors have been active, led by our Industrial & Logistics and Office sectors. They accounted for one-third of our overall transaction activity, respectively. Long WALE Retail made up a further 24 per cent, with Social Infrastructure at 10 per cent and Shopping Centre Retail at 1 per cent,” said managing director and group chief executive David Harrison.
“Our portfolio curation and delivery of strategy contributed to $4.1 billion of net valuation growth during the year, which equates to a 10 per cent increase in the Group’s net FUM during FY21. Our Industrial & Logistics and Long WALE triple net lease portfolios have been stand-out net valuation growth performers. Of course, this growth also reflects the trust placed in us, as custodians of capital, to wisely manage and invest on behalf of our investors.”
As for the company’s future outlook, FY22 earnings guidance is for post-tax OEPS of no less than 75cps, while distribution per security guidance is for 6 per cent growth over FY21.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
