Charter Hall post $190m loss, shares drop
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The news: Charter Hall shares are down 1.7% after the property group reported a net loss and a decline in funds under management during the first half of the financial year.
The numbers: The fund manager posted a loss of $190 million, compared with a profit of $226.5 million a year earlier, and a revenue fall of 34% to $311.4 million.
Operating income was down 18.7% to $195.1 million, while funds management segment revenue was down 25.7% to $225.9 million.
Overall group FUM was down $4.8 billion to $82.6 billion, driven by divestments and devaluations within its property FUM, which contracted by $4.2 billion including devaluations of $3.5 billion.
However, the group posted $900 million of gross equity inflows comprising $249 million in wholesale pooled funds, $552 million in wholesale partnership, $6 million in listed funds, and $65 million in direct managed funds.
The group also reaffirmed its earnings guidance for the full-year at 75 cents per share for post-tax operating earnings per security.
By 1:10pm AEDT, Charter Hall shares were down 1.7% to $11.86.
The context: While rising interest rates have driven valuations downward, Charter Hall said it continued to develop new assets and modernise prime located assets that met the needs of tenants while selectively divesting older, non-core assets.
The group noted it commenced the construction of the $1.8 billion Chifley SouthTower in Sydney.
Australian law firm Gilbert + Tobin, international investment bank UBS and Charter Hall Group were listed as future occupants, bringing the pre-commitment level in the building to over 55%.
The source: ASX announcement
