'Record 6-month period': Charter Hall (ASX:CHC) share price launches 7% on half-year results

Charter Hall has spilled all the details of its whopper first half. Here's what you need to know.

| More on:
Rising real estate share price with a yellow arrow.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Charter Hall share price rocketed higher this morning, hitting an intraday high of $17.10 
  • The gain followed the release of the company's half-year earnings 
  • Over the 6 months ended 31 December, the integrated property group recorded a 127% increase in revenue as its profits jumped 198% 

The Charter Hall Group (ASX: CHC) share price took off this morning after the company released its earnings for the first half of financial year 2022.

At the time of writing, the Charter Hall share price is $16.35, 2.32% higher than its previous close.

However, that's a far cry from the stock's intra-day high of $17.10 – representing a 7% gain.

Charter Hall share price surges as profits almost triple

  • Revenue of $566.1 million – a 127% increase on that of the first half of financial year 2021
  • Statutory profit after tax of $517.8 million – 198% more than the prior period's $173.2 million profit
  • Operating earnings of $263.9 million – a 104% increase
  • Operating earnings per share (EPS) of 56.6 cents
  • As previously announced, the company will pay an interim dividend and distribution totalling 19.66 cents per share on 28 February

As of the end of the first half, Charter Hall boasted $79.5 billion of funds under management, with $61.3 billion of property funds under management.

That represents $27.2 billion – or 52% – funds under management growth for the period.

Additionally, the company's property investments grew by 18% ­– or $432 million – to $2.85 billion, delivering a 25.5% return.

Its portfolio occupancy ended the period at 97.4% and its weighted average lease expiry was 8.6 years.

Meanwhile, the Charter Hall Property Trust Group brought in $18.4 million of revenue – up from $3.3 million – and a statutory profit after tax of $307.5 million – up from 104.7 million.

During the half, Charter Hall underwent $6.8 billion of transaction activity, made up of more than 60 transactions with 18 active funds and partnerships. It also completed more than $11 billion of sale and leaseback transitions.

What else happened in the half?

Charter Hall's development pipeline grew 50% to $13.2 billion over the last 6 months. Over the last 12 months, its development completions totalled $1.2 billion.

It completed $1.3 billion of sustainable finance transitions last half and is on track to power all operations with 100% renewable energy by 2025.

It also created a new partnership with Paradice Investment Management, investing in 50% of the entity's shares.

The company's managing director and CEO, David Harrison noted the partnership boasts good growth opportunities.

What did management say?

Harrison commented on the company's earnings for the half, saying:

The current period has seen us experience strong inflows across our strategies, with $2.8 billion of gross equity allotted. We've also successfully deployed $5.4 billion in acquisitions across 18 funds and partnerships, a record 6-month period.

Importantly, our development pipeline continues to grow and now stands at $13.2 billion, providing valuable opportunities to deploy our investment capacity into new product.

With investment capacity of $6.7 billion across the platform, continued strong demand from capital partners to deploy equity, a growing development pipeline and significant retained earnings, we continue to see a strong pathway of growth for the group.

What's next?

Charter Hall updated its financial year 2022 guidance today.

Previously, it aimed to provide post-tax operating EPS growth of at least 105 cents.

Today, it changed that outlook to post-tax EPS of no less than 112 cents.

Its distribution per share guidance of 6% growth has remained the same.

Charter Hall share price snapshot

2022 has proven rough on the Charter Hall share price.

It is currently 21% lower than it was at the start of this year. Though, it's still 34% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Earnings Results

Sayona Mining share price jumps despite $32m half-year loss

The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Thursday. At the time of writing, the lithium…

Read more »