Charter Hall Group (CHC) H1 2025 earnings summary

Executive summary

• Operating earnings for the half reached AUD 196.4 million, with OEPS of AUD 0.415 per security and statutory profit post-tax of AUD 61.1 million, reversing a prior loss.

• Group FUM increased to AUD 83.4 billion, with property FUM at AUD 66.4 billion, supported by AUD 4.1 billion in gross property transactions and a AUD 13.3 billion development pipeline.

• Interim distribution per security rose 6% to 23.42c, with franking credit distribution up 100.2% to 8.5c.

• Balance sheet remains strong with net gearing at 5.9% and available liquidity of over AUD 6 billion, supporting future growth.

• FY25 operating earnings guidance upgraded to approximately AUD 0.81 per security, representing 6.9% growth over FY24, with distribution guidance for 6% growth.

Financial highlights

• Statutory profit for the half was AUD 61.1 million post-tax, with operating earnings up 0.7% year-over-year to AUD 196.4 million.

• Operating earnings per security for the half was AUD 0.415, and distribution per security rose 6% to 23.4c.

• EBITDA held at AUD 305 million, with property investment EBITDA up 5.2% and funds management EBITDA up 1.1%.

• Cash distribution payout ratio was 56% of operating earnings, fully covered by operating cash flows.

• Net tangible assets per security were AUD 5.37 at 31 Dec 2024, down from AUD 5.49 at 30 Jun 2024.

Outlook and guidance

• FY25 OEPS guidance upgraded to approximately AUD 0.81 per security, representing 6.9% growth over FY24, and distribution per security guidance for 6% growth.

• Guidance assumes no material change in current market conditions and excludes performance fee revenue.

• Management expects asset value growth driven by rent growth and cap rate compression as the cycle recovers.

• Directors remain confident in the Group’s ability to pay debts as they become due.

• Forecasts are subject to uncertainty and actual results may differ materially.