onlyCharter Hall Group
useInterim Financial Report
For the half year ended 31 December 2021
Comprising the stapling of ordinary shares in Charter Hall Limited (ACN 113 531 150) and units in the personalCharter Hall Property Trust (ARSN 113 339 147)
For
onlyuse
personalImportant notice
This financial report has been prepared and issued by Charter Hall Limited (ACN 113 531 150) and Charter Hall Funds Management Limited (ACN 082 991 786, AFSL 262861) (CHFML) as Responsible Entity of the Charter Hall Property Trust (ARSN 113 339 147) (together, the Charter Hall Group or Group). The Charter Hall Group is incorporated and domiciled in Australia. The registered office of the Charter Hall Group is Level 20, No. 1 Martin Place, Sydney NSW 2000. The information contained in this report has been compiled to c mply with legal and regulatory requirements and to assist the recipient in assessing the performance of the Group independently and does not relate to, and is not relevant for, any other purpose.
This report is not intended to be and does not constitute an offer or a recommendation to acquire any securities in the Charter Hall Group. The receipt of this report by any person and any information contained herein or subsequently communicated to any person in connection with the Charter Hall Group is not to be taken as constituting the giving of investment, legal, or tax advice by the Charter Hall Group, its related bodies corporate, its Directors or employees to any such person. Each recipient should consult their own counsel, accountant, and other advisers, as to legal, tax, business, financial and other considerations in relation to the Charter Hall Group.
Neither the Charter Hall Group, their related bodies corporate, Directors, employees nor any other person who may be taken to have been involved in the preparation of this report represents or warrants that the information contained in this report, provided either orally or in writing to a recipient in the course of its evaluation of the Charter Hall Group or the matters contained in this report, is accurate or complete.
ForHist rical performance is not a reliable indicator of future performance. Due care and attention has been exercised in the preparation of f recast information; however, forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of the Group. Actual results may vary from any forecasts, and any variation may be materially positive or negative.
CH ML does not receive fees in respect of the general financial product advice it may provide; however, entities within the Charter Hall Group receive fees for operating the Charter Hall Property Trust in accordance with its constitution. Entities within the Group may also receive fees for managing the assets of, and providing resources to, the Charter Hall Property Trust. All information herein is current as at 31 December 2021 unless otherwise stated. All references to dollars ($) or A$ are Australian dollars unless otherwise stated.
© Charter Hall
Cover photo: 10 Shelley Street, Sydney NSW.
onlyuseContents personalFor
Auditor's independence declaration | 8 | |
Consolidated statements of comprehensive income | 9 | |
Consolidated balance sheets | 11 | |
Consolidated statement of changes in equity - Charter Hall Group | 12 | |
Consolidated statement of changes in equity - Charter Hall Property Trust Group | 13 | |
Consolidated cash flow statements | 14 | |
Notes to the consolidated financial statements | 15 | |
1 | Segment information | 15 |
2 | Investment in associates | 18 |
3 | Investments in joint ventures | 20 |
4 | Revenue | 21 |
5 | Distributions/Dividends paid and payable | 21 |
6 | Earnings per stapled security | 22 |
7 | Receivables and other assets | 23 |
8 | Investment properties | 23 |
9 | Intangible assets | 24 |
10 | Borrowings | 24 |
11 | Contributed equity | 25 |
12 | Non-controlling interests | 26 |
13 | Fair value measurement | 26 |
14 | Commitments | 28 |
15 | Contingent liabilities | 28 |
16 | Events occurring after the reporting date | 28 |
17 | Summary of significant accounting policies | 29 |
Directors' declaration to securityholders | 30 | |
Independent auditor's report | 31 |
Charter Hall Group Directors' Report 2022
Directors' report
For the half year ended 31 December 2021
The Directors of Charter Hall Limited and the Directors of Charter Hall Funds Management Limited, the Responsible Entity (RE) of onlyCharter Hall Property Trust, present their report together with the consolidated interim financial report of the Charter Hall Group (Group or CHC) and the consolidated interim financial report of the Charter Hall Property Trust Group (CHPT) for the half year ended 31
December 2021, and the independent auditor's report thereon. The interim financial report of the Group comprises Charter Hall Limited (Company or CHL) and its controlled entities, which include Charter Hall Funds Management Limited as the RE of Charter Hall Property Trust (Trust) and CHPT and its controlled entities. The interim financial report of the Charter Hall Property Trust Group comprises the Trust and its controlled entities.
Charter Hall Limited and Charter Hall Funds Management Limited have identical Boards of Directors. The term Board hereafter should be read as a reference to both these Boards.
The units in the Trust are 'stapled' to the shares in the Company. A stapled security comprises one Company share and one Trust unit. useThe stapled securities cannot be traded or dealt with separately.
Directors
The following persons were Directors of the Group during the half year and up to the date of this report.
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Distributions/Dividends - Charter Hall Group
Distributions/dividends paid/payable to stapled securityholders during the half year were as follows:
Interim ordinary distribution of 11.33 cents and interim ordinary dividend of 8.33 cents per stapled secu ity for the six months ended 31 December 2021 payable on 28 February 2022
Total Distributions/Dividends paid and payable to stapled securityholders
Op rating and financial review
The Group recorded a statutory profit after tax attributable to stapled securityholders for the half year to 31 December 2021 of $517.8 million compared to a profit of $173.2 million for the half year ended 31 December 2020.
Operating earnings amounted to $263.9 million for the half year to 31 December 2021, compared to $129.3 million for the half year ended 31 December 2020, an increase of 104.1%. Operating earnings is a financial measure which represents statutory profit after tax
Foradjusted for the items in the table below. Operating earnings is used by the Board to make strategic decisions and as a guide to assessing an appropriate distribution to declare.
Operating earnings attributable to stapled securityholders
Add: Net fair value movements from investment properties on equity accounted investments1
Add: Net gain/(loss) on disposal of property investments1
Less: Non-operating income tax benefit/(expense)
Less: Realised and unrealised net gains/(losses) on derivatives1
Less: Reversal of impairment/(impairment) of equity accounted investments
Less: Performance fees expense1
Less: Non-operating pursuit costs
Less: Amortisation of intangibles
Less: Other1
Statutory profit after tax attributable to stapled securityholders
1 Includes the Group's proportionate share of non-operating items of equity accounted investments on a look through basis.
3
Charter Hall Group Directors' Report 2022
Directors' report
For the half year ended 31 December 2021
Operating and financial review continued
The 31 December 2021 financial results with comparatives are summarised as follows:
Charter Hall Property | |||||||||
Charter Hall Group | Trust Group | ||||||||
31 Dec | 31 Dec | 31 Dec | 31 Dec | ||||||
2021 | 2020 | 2021 | 2020 | ||||||
Revenue ($ million)1 | 566.1 | 248.3 | 18.4 | 13.3 | |||||
Basic weighted average number of stapled securities per Note 6 (million) | 465.9 | 465.8 | 465.9 | 465.8 | |||||
Statutory profit after tax for stapled securityholders ($ million) | 517.8 | 173.2 | 307.5 | 104.7 | |||||
only | 111.2 | 37.2 | 66.0 | 22.5 | |||||
Statutory earnings per stapled security (EPS) (cents) | |||||||||
Operating earnings for stapled securityholders ($ million) | 263.9 | 129.3 | n/a | n/a | |||||
Op | rating earnings per stapled security (cents) | 56.6 | 27.8 | n/a | n/a | ||||
Distribution/dividend per stapled security (cents) | 19.7 | 18.6 | 11.3 | 11.1 | |||||
Property investment segment earnings ($ million)2 | |||||||||
71.6 | 60.4 | n/a | n/a | ||||||
Development investment segment earnings ($ million)2 | 27.0 | 7.2 | n/a | n/a | |||||
Funds management segment revenue ($ million)2 | 327.0 | 149.9 | n/a | n/a | |||||
Total segment earnings2 | 425.6 | 217.5 | n/a | n/a | |||||
use | 31 Dec | 30 Jun | 31 Dec | 30 Jun | |||||
2021 | 2021 | 2021 | 2021 | ||||||
Total assets ($ million) | 4,108.7 | 3,284.7 | 3,212.6 | 2,658.5 | |||||
Total liabilities ($ million) | 918.6 | 775.9 | 684.0 | 615.2 | |||||
Tot | l net assets ($ million) | 3,190.1 | 2,508.8 | 2,528.6 | 2,043.3 | ||||
Net | ssets attributable to non-controlling interest ($ million)3 | 250.3 | 137.5 | 250.3 | 137.5 | ||||
Net assets attributable to stapled securityholders ($ million) | 2,939.8 | 2,371.3 | 2,278.3 | 1,905.8 | |||||
Stapled securities on issue (million) | 473.0 | 465.8 | 473.0 | 465.8 | |||||
Net assets per stapled security ($) | 6.22 | 5.09 | 4.82 | 4.09 | |||||
Net tangible assets (NTA) attributable to stapled securityholders | |||||||||
($ million)4 | 2,855.3 | 2,286.5 | 2,278.3 | 1,905.8 | |||||
NTA per stapled security ($)4 | 6.04 | 4.91 | 4.82 | 4.09 | |||||
Balance sheet gearing5 | 7.3% | 5.0% | n/a | n/a | |||||
Funds under management (FUM) ($ million)6 | 79,486.9 | 52,288.9 | n/a | n/a | |||||
1 Gross revenue does not include the Group's share of net profits of associates and joint ventures of $325.7 million (31 December 2020: $104.9 million). | |||||||||
2 | S gment earnings and revenue is used by the Board in assessing the performance and allocating of resources to its operating segments. | ||||||||
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3 Represents the 78.6% (30 June 2021: 67.7%) non-controlling interest share of the Charter Hall Direct Long WALE Fund (DLWF).
4 NTA attributable to stapled securityholders and NTA per stapled security ($) are calculated using assets less liabilities, net of intangible assets and related deferred tax and non-controlling interests in DLWF. NTA includes right of use assets.
5 Gearing is calculated as interest-bearing debt drawn (excluding hedged foreign exchange movements subsequent to the related debt drawing date and DLWF net of cash, divided by total assets net of cash, derivative assets and DLWF).
6 Includes 100% of Paradice Investment Management Funds Management Portfolio ($18.2bn), of which the Group owns 50%.
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Charter Hall Group published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 22:53:38 UTC.