Listed property fund manager Charter Hall moved to calm investors’ fears yesterday about its debt position following the credit woes afflicting its competitors Centro Property Group and MFS Limited.
The Sydney-based group’s assets under management rose 30 per cent to $3.66 billion over the six months to 31 December across all managed funds, Charter Hall Group said in a statement yesterday.
It moved to assure shareholders that its domestic portfolio is shored up with capital from major lenders National Australia Bank, the Commonwealth Bank of Australia (CBA), St George Bank and Axa Australia under two and five year terms.
The group said it has total grossed up debt of 46 per cent.
It raised $300 million in equity for its newest opportunistic fund in May and is ready to explore new opportunities, joint manager director David Harrison said yesterday.
Wholesale investors own 80 per cent of the group’s portfolio, with the balance flowing in from retail investors through BT Wrap, Macquarie Wrap, MLC Masterkey and CBA’s Avanteos.
Funds under management surged 108 per cent in the full year 2007 to $2.8 billion.
Net profit rose 147 per cent to $43.2 million during 2007.
Ratings agency Property Investment Research (PIR) has given a AA- rating to the group and valued it at $2.38, saying it is in reasonably good shape to accommodate risk.
“Charter Hall is relatively well-positioned in the REIT [Real Estate Investment Trust] universe because it has Australian exposure and no exposure to the US,” a PIR analyst said.
“[Their] debt exposure profile is quite short compared to the other REITs and I don’t see too much of a problem with that,” the analyst said.
Charter Hall’s share price closed up 2 cents yesterday to $1.45.
