Charter Hall has reported solid organic growth for its half year result, with both operating earnings and profit recording double digit growth.
The $1.6 billion property investor and fund manager saw statutory profit rise 39.5 per cent to $39.9 million. Operating earnings rose 27.1 per cent to $48.4 million.
Charter Hall’s joint managing director, David Harrison said the group has focused on enhancing the quality of its portfolio by investing in industrial and retail assets with long leases.
“Our enhancement of portfolio quality is evidenced by the increased WALE [weighted average lease expiry] of 9.5 years, improved investment grade tenant composition and better balanced sector weightings which have markedly lowered the risk profile of the portfolio,” Mr Harrison said.
Charter Hall’s funds under management increased 10.4 per cent, with the portfolio totalling $12.7 billion and comprising 270 properties at 30 December 2014.
Operating earnings for the Property Funds Management division was up 27.4 per cent to $21.3 million.Across all the managed funds, $944 million of gross equity was invested in $1.4 billion of new acquisitions.
Charter Hall joint managing director David Southon called it “solid organic growth.”
“The active management of our portfolio, investment in our assets and partnership with our tenants remains the key focus for our property teams,” he said.
Charter Hall’s guidance for the full year is unchanged at 7.9 per cent growth in operating earnings per security.
“We expect quality property with secure cash flow to remain highly attractive to both institutional and retail investors in a low interest rate and low inflationary environment,” Mr Harrison said.