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Image – Charter Hall, HomeCo.
  • CHC profits up 37.8%
  • Charter Hall also celebrated its 30th anniversary
  • HomeCo successfully transitioned to a capital light fund manager

Charter Hall Group (ASX: CHC)

CHC has now released its FY21 results, and it follows hot on the heels of Charter Hall’s Long WALE REIT (ASX: CLW) and Social Infrastructure REIT (ASX: CQE).

CLW reported $618 million in statutory profit, and $159 million in operating earnings, making $1.4 billion of property transactions with a total portfolio (468 properties) now worth $5.6 billion, a +180% increase over the year, with 98.3% occupancy.

CQE likewise had a healthy scorecard with statutory profit up 103% to $174.1 million and operating earnings at $58 million. The portfolio was worth $1.6 billion, and NTA was $3.25.

FY21 Change Direction
Operating earnings $284.3 million 11.90%
Operating earnings per security after tax 61 cps 8.3 cps
Statutory profit after tax $476.8 million 37.80%
Funds under management $52.3 million 29%
Property investment portfolio $2.4 billion 18.80%
Portfolio occupancy 97.40%
WALE 9.1 years 0.4 years

“FY21 is Charter Hall’s 30th anniversary year and its 16th as an ASX listed Group,” said Charter Hall’s Managing Director and Group CEO, David Harrison.

“As we celebrate our 30th anniversary, we are proud to have created an Australian Funds management business of scale by global standards, but most importantly we have generated record fund inflows, gross transactions and FUM growth of $11.7 billion in FY21.”

Home Consortium (ASX: HMC)

The company said it has successfully executed its transition to a capital light fund manager.

In its financial highlights the company reported some $1 billion liquidity provides the capacity to scale funds management platform to $10bn+ of AUM by CY24, and 109% total shareholder return since IPO in October 2019, outperforming ASX 200 A-REIT index by 101%.

The company successfully listed HomeCo Daily Needs REIT (ASX: HDN) in November 2020, assets under management for which has grown by 82%. An IPO for HealthCo REIT is on track for a September 2021 listing.

“We are pleased to deliver another strong set of results which validate our strategy and the significant value we’ve created for HMC securityholders since IPO. We delivered FFO of 13.1cps or 15.2cps on an adjusted basis for the in-specie distribution, up 75% on FY20,” said HMC Managing Director and CEO, David Di Pilla.

“FY21 was a transformational year for HMC on our journey to become Australia’s alternative asset manager of the future. We successfully transitioned from a pure asset owner with $0.9 billion of AUM at IPO to a capital light fund manager with the ability to grow externally managed AUM to $10bn+ with existing capital sources.”

FY21 Change Direction
FFO 13.1 cps 51%
FFO $35.8 million $18.6 million
Total AUM $2.5 billion 144%
Operating loss after tax $56.4 million FY20 operating profit $3.2 million
Statutory loss after tax $85.9 million FY20 statutory profit $12 million

Mr Di Pilla was confident the next financial year is bright noting, “The strong momentum has continued in FY22 with the upcoming ASX-listing of HCW in Sep-21 following a successful $650m equity raising which was strongly oversubscribed and subsequently upsized.”

HMC’s guidance for FY22 stated pre-tax FFO will be at least 18.5 cents per security, up 35% from FY21, and FY22 DPS guidance of 12 cents.

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