Charter Hall Group reports a loss

21 February 2024

Today, Charter Hall Group released half-year results with a statutory loss of $190 million.

Charter Hall’s Managing Director and Group CEO, David Harrison, said: “We’ve continued the ongoing curation of the portfolios we manage, developing new assets and modernising prime located assets that meet the needs of today’s tenants while selectively divesting older, non-core assets which enhance returns. The commencement of construction for the $1.8 billion Chifley South Tower to create Australia’s premier $3.8 billion precinct follows $3bn of development completions across office and industrial over the past 12 months, all demonstrating the active asset management of our Platform.”

Portfolio occupancy remains healthy with a 97.0% occupancy rate, Weighted Average Lease Expiry (WALE) of 7.3 years, and the Weighted Average Rent Review (WARR) is an attractive 3.5%, whilst the cap rate has risen 65 bps to 5.24% over the past 12 months.

Development activity continues to drive modern asset creation, enhancing returns, which continues to attract new capital to our funds and deliver on strategies. Development completions totalled $3.0 billion in the last 12 months. Notwithstanding completions, the pipeline continues to be re-stocked and is currently $12.8 billion with $5.0 billion in committed development project value.

Based on no material adverse change in current market conditions, Charter Hall reconfirms that FY24 earnings guidance is for post-tax operating earnings per security of approximately 75cps.

FY24 distribution per security guidance is for 6% growth over FY23.