Charter gets into the theme

THE key theme of reporting season for real estate investment trusts is the creation of wholesale funds, managed by the listed corporate head stock.

Charter Hall Group, which started its life as an unlisted fund, will continue the theme with a focus on its stable of unlisted funds.

Charter Hall generates 60 per cent of its income from its property investments - its stakes in the Charter Hall Office and the listed Charter Hall Retail fund - as well as its suite of wholesale funds including the Charter Hall Office Core-Plus fund.

The remaining 40 per cent of income comes from the property funds under management, which increased to $10 billion.

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

The interim distribution of 9.8¢ was declared, up 7.7 per cent on the previous corresponding period, and payable on Tuesday, February 26.

Charter Hall Group's joint managing director, David Harrison, forecast earnings guidance of between 22.5¢ and 23.5¢ per security, a rise of about 5 per cent to 9 per cent on the 2102 full year.

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