Charter Hall Shares Are Soaring Today

What happened to Charter Hall?

Shares of Charter Hall Group Forus [ASX:CHC] gained almost 5% today.

Why did the CHC share price soar?

Charter Hall has published its half-year results ended 31 December 2016. The company announced a statutory profit after tax of $173.3 million, up 20.8% from previous period. It reported operating earnings of $80.8 million, a 32% increase from the previous period.

Charter Hall is one of Australia’s leading property groups with a total managed portfolio of $19 billion, and 314 commercial properties around Australia.

46% of the assets are rented as office space, while 25% is industrial and 29% in retail. The company has a weighted average lease expiry (WALE) of 7.9 years. Its top tenants are Woolworths, Westfarmers, the Australian government and Commonwealth bank.

During the last six months of the year, the property investment portfolio increased by $205 million, a total of 19%. $115 million was due to net investments and the remaining $90 million was an increase in net valuation.

The stock value has increased from $4.98 to $5.225 today.

What now for Charter Hall Group Forus?

For FY17 the company expects that commercial property will continue to remain attractive, and expects continued equity flows for institutional fund managers with strong track records. Charter Hall also expects asset values will continue to increase.

By Selva Freigedo

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Selva Freigedo is an analyst with a background in financial economics. Born and raised in Argentina, she has also lived in Brazil, the US and Spain. She has seen economic troubles firsthand, from economic booms to collapses and the ravaging effects of hyperinflation, high unemployment, deposit freezes and debt default. Selva now writes from her vantage point here in Australia. She is lead Editor at the daily e-letter Markets & Money. And every week, she goes through each report and research note produced by our global network of trusted advisors to find the best investment opportunities for you in Australia and overseas. She packages these opportunities for you in Global Investor.


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