Charter Hall Group Ltd has lifted its full-year earnings guidance despite posting a slight slip in first-half profit as it simultaneously unveiled a capital raising.
In the six months to December 31, Charter Hall posted a net profit of $28.6 million, a 4.3 decline on the $29.9 million recorded in the first half of the previous year.
Operating earnings came in at $38.1 million, 13.1 per cent higher than the previous corresponding period's $33.7 million.
Charter Hall’s joint managing director, David Southon, said the strong operational performance drove property investment earnings growth, contributing to the 10 per cent increase in operating earnings per security.
In the same period revenue, was $59.8 million, a 3.8 per cent lift on the $58 million recorded in the first half of the previous year.
The group will pay an interim dividend of 11 cents on February 25 to shareholders on the register at December 31.
The group lifted its earnings guidance for the full year, and said barring any unexpected events is projecting full-year operating earnings per security growth of seven per cent to nine per cent on the expanded total capital base.
A distribution payout ratio of between 85 per cent and 95 per cent of operating earnings per security is also expected.
Raising to repay drawn debt
In a separate release, Charter Hall announced its shares would be placed in a one-day trading halt pending the outcome of a proposed capital raising.
Charter Hall said the capital raising was a fully underwritten $140 million institutional placement which will be used to repay drawn debt used for recent investments, fund identified investments and to provide capital for growth initiatives planned.
The group said it is undertaking the placement in order to continue the its partnering business model and provide growth capital following an active three years of recycling.