Charter Hall Group (CHC) H1 2025 earnings summary

Executive summary

• Operating earnings for 1H FY25 reached $196.4 million, with OEPS of 41.5 cents per security and statutory profit post-tax of $61.1 million, reversing a prior year loss.

• Group FUM increased to $83.4 billion, with property FUM at $66.4 billion, supported by $4.1 billion in gross property transactions and a $13.3 billion development pipeline.

• Distribution per security rose 6% to 23.4 cents, with interim distribution declared and payable 28 February 2025.

• Balance sheet remains strong with low gearing at 5.9% and available liquidity of $6.1 billion, supporting future growth.

• FY25 operating earnings guidance upgraded to 81.0 cents per security, representing 6.9% growth over FY24, with distribution guidance for 6% growth.

Financial highlights

• Statutory profit for the half was $61.1 million post-tax, with operating earnings up 0.7% year-over-year to $196.4 million.

• Funds under management (FUM) increased by $2.5 billion to $83.4 billion, including $66.4 billion in property and $17 billion in listed equities.

• EBITDA margin expanded to 84% in 1H FY25; PI EBITDA grew 5.2% to $136.6 million, FM EBITDA up 1.1% to $142.9 million, DI EBITDA down 26.7% to $25.7 million.

• Distribution per security rose 6% to 23.4 cents, with franking credit distribution up 100.2% to 8.5 cents.

• Net tangible assets per security were $5.37 at 31 December 2024, down from $5.49 at 30 June 2024.

Outlook and guidance

• FY25 OEPS guidance upgraded to 81.0 cents per security, up from 79.0 cents, with 6.9% growth over FY24 and distribution guidance for 6% growth.

• Guidance assumes no material change in market conditions and excludes performance fee revenue.

• Management expects asset value growth driven by rent growth and cap rate compression as the cycle recovers.

• Capital deployment expected to accelerate as market conditions improve.

• Directors remain confident in the Group’s ability to pay debts as they become due.