By a staff reporter
Charter Hall Group Ltd is tipping earnings growth of 7 per cent in the current year on expectations investors will seek to capitalise on the low cash rate by increasing their exposure to Australian property.
Net profit in the year to June grew to $54.8 million, from $16.7 million in the prior year. The rise was largely attributable to a $42.5 million cash injection from profits of associates, which increased from $2.9 million in 2011-12.
Revenues fell 7.1 per cent to $114.8 million in the year, from $123.6 million.
It will pay a final dividend of 20.2 cents, compared to 18.2 cents last year.
Funds Under Management increased from $8.9 billion to $10.3 billion in the year on the establishment of new funds, including Charter Hall Direct Industrial Fund No.2, BP Fund, Core Logistics Partnership and Keperra Square Fund and a string of property acquisitions. The group was targeting growth in its Australian funds under management of 6 to 10 per cent per year.
Charter Hall‟s Joint Managing Director, David Southon said the group was forecasting growth of 7 per cent in operating earnings per security for the current year.
“Given the attractive yield proposition for property relative to other asset classes and having regard to our current low interest rate environment, we expect many investors - across both institutional and retail platforms – will continue to increase their exposure to Australian property," he said.