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In defiance of Australia’s slowing economy, Charter Hall Group saw over $220 million in statutory earnings over FY24.
The property investment group saw strong yields over the past financial year, despite economic headwinds across the property sector.
In total, Charter Hall Group saw $358.7 million in operating earnings, or just over 75¢ per security post-tax.
Over the 2023–24 financial year, the firm managed over $80 billion worth of funds under management (FUM), $65.5 billion of which was property-related FUM.
With $2.8 billion invested in property, interest remained resilient over the period, although the changing economic landscape necessitated some shifts in investment strategy.
“FY24 has seen us focus on the ongoing curation of the portfolios we manage, selective development, partnering with our tenant base and investor customers to meet their needs and closely managing our cost base,” said managing director and CEO David Harrison.
“This has seen us deliver a good result set against a tough real estate environment,” he stated.
When it came to net outflows, secondary unit sales in pooled funds were a major influence, with more investors choosing to sell these properties. However, according to Charter Hall, demand from existing and new investors helped to prop gross equity inflows up.
Harrison noted that the current rate climate has had an impact on pricing strategies, with affordable pricing strategies the way to go.
“With evidence emerging of a slowing economy and inflation trends moderating, we consider ourselves well positioned to take advantage of a lower interest rate environment as it emerges,” the CEO said.
“We see current market pricing as offering attractive long-term returns for stabilised core real estate products and value-add development and opportunistic strategies.”
“It’s our expectation that capital deployment will increase to take advantage of market conditions,” he predicted.
Looking forward, the group expects to see 6 per cent year-on-year growth over FY25, assuming no material change in current market conditions.
Charter Hall Group predicts post-tax operating earnings per security to increase to 79¢ over the coming financial year, spelling good news for shareholders.
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