Charter Hall Retail REIT posts drop in half-year operating earnings
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The news: Charter Hall Retail REIT reported a decline in operating earnings for the six months to December as it declared a flat distribution.
The property investor also said it has appointed former Macquarie, Westpac and NSW Treasury Corporation executive Lianne Buck to its board as non-executive director.
The numbers: Charter Hall Retail recorded first-half operating earnings of $73.1 million, down from $78.6 million a year earlier. Its distribution of 12.3 cents per unit was flat compared to a year ago.
Net tangible assets per unit edged up from $4.54 to $4.57.
The context: Charter Hall Retail's result came as the company continues to increase its stake in listed pub owner Hotel Property Investments (HPI). Together with super fund Hostplus, it has increased its ownership from 20% in September to 85.4%, with the intention of moving towards 100% ownership.
Having previously urged shareholders to reject Charter Hall and Hostplus' $3.85-per-share takeover offer, HPI's directors have now recommended they accept the bid.
What they said: "Our significant investment in the ASX listed HPI, alongside our wholesale capital partner Hostplus, will enhance the overall portfolio's income profile," said chief executive Ben Ellis.
The source: ASX announcement
