Charter gets into the theme

The key theme was the creation of wholesale funds managed by the listed corporate head stock. Charter Hall continued this approach with a focus on growing its stable of unlisted and wholesale funds.

Charter Hall generates about 60% of its income from its property investments — including stakes in the Charter Hall Office and the listed Charter Hall Retail fund — and from its suite of wholesale funds such as the Charter Hall Office Core-Plus fund. The remaining 40% comes from fees related to the property funds it manages.

Charter Hall's funds under management increased to $10 billion, which drives management fee income and contributes to the group's overall revenue mix.

For the six months to December 31, Charter Hall posted a statutory net profit of $29.9 million, up 52.7% on the previous corresponding period. Operating earnings were 11.76 cents per security, up 4.6%.

Charter Hall declared an interim distribution of 9.8 cents per security, an increase of 7.7% on the prior corresponding period. The distribution is payable on Tuesday, February 26.

Charter Hall Group's joint managing director David Harrison forecast full-year earnings guidance of between 22.5 cents and 23.5 cents per security, which the company said would be a rise of about 5% to 9% on the 2102 full year (as stated in the report).

The half-year results were marginally higher than market expectations largely because of a rise in funds under management and higher management fees, particularly from its industrial and office wholesale funds.

The report specifically mentions the Charter Hall Office Core-Plus fund as part of its suite of wholesale funds. These wholesale funds are central to Charter Hall's strategy and contribute to the 60% of income the group earns from property investments and fund-related activities.