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Charter Hall FY19 1st Quarter Update

Charter Hall Group announced this week a strong start to FY19 with updated FUM, equity flow, transactions and leasing activity, along with the successful completion of the Folkestone Limited acquisition.

Key highlights:

  • Completed $205 million acquisition of Folkestone Limited, which comprises $1.6 billion of FUM

  • Combined with a further $1.4 billion of net acquisitions, FUM has grown to $26.4 billion

  • Increased portfolio of 779 properties across the office, industrial, retail and social infrastructure sectors comprising a weighted average lease expiry (WALE) of 7.7 years, occupancy of 97.9% and weighted average capitalisation rate (WACR) of 5.76%

  • 156 leasing deals executed across 172,000sqm of space in the office, industrial and retail sectors

  • Total development pipeline of 37 office, industrial and retail projects with an on-completion value of $3.7 billion, de-risked through pre-leases and fixed price building contracts

  • Continued momentum in equity flows with $918 million gross equity raised across the Group YTD

  • $641 million in equity raised across wholesale pooled funds and partnerships. Strong equity flows driven by recent raisings in CPOF and CPIF

  • Direct Funds have continued to maintain their market leading status with a further $217 million raised across four open ended funds

  • CLW successfully complete a $60 million institutional placement in October

  • Property Investment Portfolio increased by 5.5% to $1.8 billion

Strategy and Outlook

Based on no material change of current market conditions and the completion of the Folkestone transaction, FY19 guidance is for 8-10% growth in post-tax operating earnings per security over FY18. The distribution payout ratio is expected to be between 85% and 95% of operating earnings per security post-tax.

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