Charter Hall Group (CHC) H2 2024 earnings summary

Executive summary

• FY24 operating earnings per security (OEPS) of AUD 0.758, slightly ahead of guidance, with total operating earnings reaching $359 million; group FUM at AUD 80.9bn as of 30 June 2024.

• Distributions grew 6% year-over-year, maintaining a long-term trend and providing 13.1cps of franking credits.

• Group investment capacity stands at AUD 683m, with platform-wide liquidity of AUD 6.6bn and balance sheet gearing at 3%.

• Group EBITDA margin expanded to 79.3%, reflecting platform scale and cost control.

• FY25 guidance targets post-tax OEPS of ~AUD 0.79 (4% growth) and 6% distribution growth, assuming stable market conditions.

Financial highlights

• PI EBITDA up 9.1% to AUD 271m, driven by high occupancy, rent increases, and net investment.

• Development EBITDA at AUD 36.4m, in line with prior year.

• Funds management income down 27.7% due to lower transaction/performance fees.

• Operating earnings post-tax: AUD 358.7m (AUD 0.758 per security); statutory earnings: -AUD 222.1m due to portfolio devaluations and non-operating items.

• Distribution per security rose to 45.1cps, with payout ratio at 59%.

Outlook and guidance

• FY25 post-tax OEPS expected at approximately AUD 0.79, with 6% distribution growth, assuming stable market conditions.

• No performance fees included in FY25 guidance; cost restructuring benefits and asset value stabilization expected.