CHARTER HALL GROUP (CHC)



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General Information
Company Name: Charter Hall Group
Stock Code: CHC
Website: www.charterhall.com.au
GICS Sub-Industry: Diversified Real Estate Investment Trusts
Market Cap ($M): 1,254
Equiv. Shares (M): 302

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 4.160 $ 4.290 $ 4.310 $ 4.130 $ 4.320 972,747 $ -0.160  -3.704 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 27th Feb 2013
12 Month Target Price (average): $3.205
Brokers Surveyed: 6

Company Overview

Business Description:
Charter Hall Group (CHC) is a property fund manager and developer managing a suite of institutional, wholesale and retail unlisted property funds in which it holds investments. The funds are diversified across the office, retail, industrial and residential sectors. CHC has offices in Sydney, Melbourne, Brisbane, Adelaide, Perth, Warsaw and Chicago. CHC’s business comprises three divisions namely property investment, property funds management and development investment.

Strategy Analysis:
CHC aims to be Australia´s leading specialist property fund manager, operating a vertically integrated business model and offering a suite of products across the risk return spectrum with a particular focus on a superannuation industry client base. Using extensive in-house resources, CHC seeks to undertake active property management and capital management to optimise both property and fund returns. Charter Hall Group reported NPAT up 52.6% to $29.87m for the half-year ended 31 December 2012. Revenues from ordinary activities were $57.98m, down 2.8% from the same period last year. Diluted EPS was 9.68 cents compared to 6.17 cents last year. Net operating cash flow was $28.39m compared to $25.25m last year. The interim dividend declared was 9.80 cents compared with 9.10 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 71.4 22.7 3.2 18.3 20.0 4.8 0.0
2013  F 69.2 22.0 31.5 18.9 19.5 4.7 0.0
2012  A 52.5 16.7 -5.3 12.3 18.2 8.8 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
CFS Retail Property Trust (CFX) $5,968 M -0.0017 0.1780 0.0249 18.2368 15.4806 15.1038 0.0621 0.0645 0.0667
Charter Hall (CHC) $1,306 M 0.0355 0.1230 0.0541 21.1765 18.8564 17.8882 0.0421 0.0453 0.0480
Dexus Property (DXS) $5,516 M -0.6286 1.4531 0.0343 36.8932 15.0396 14.5408 0.0469 0.0509 0.0536
Goodman Gp (GMG) $8,618 M 0.0501 0.7272 0.1030 27.2777 15.7928 14.3182 0.0215 0.0378 0.0403
Investa Office Fund (IOF) $1,977 M 0.5933 0.1063 0.0346 15.9960 14.4589 13.9757 0.0543 0.0551 0.0569

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
CHC 1.73 18.3 1.69 2.08
Market 0.83 14.4 1.22 1.88
Sector 1.42 15.6 0.99 2.28

Directors
Name Position Start Date
Mr Kerry Chisholm Dart Roxburgh Chairman 12 April 2005
Mr David William Harrison Joint Managing Director 30 August 2006
Mr David Southon Joint Managing Director 30 August 2006
Mr Colin McGowan Non-Executive Director 06 April 2005
Mr David Michael Deverall Non-Executive Director 07 May 2012
Mr Philip Stuart Garling Non-Executive Director 26 February 2013
Ms Anne Bernadette Brennan Non-Executive Director 06 October 2010
Mr Peter Kahan Non-Executive Director 01 October 2009

Management
Name Position
Nathan Francis Company Secretary,Deputy Chief Financial Officer
Scott Dundas Fund Manager, Charter Hall Retail REIT (CQR)
Paul Altschwager Group Chief Financial Officer
Richard Stacker Head of Direct - Charter Hall Direct Property
Nick Kelly Head of Investor Relations
Natalie Devlin Head of People
Adrian Taylor Head of Wholesale Partnerships - Charter Hall Office Trust (CHOT)
Andrew Glass Head of Wholesale Pooled Funds
Tracey Jordan Joint Company Secretary

Substantial Shareholders
Holding Name
51,961,950 (17.54%) Gandel Group Pty Ltd
24,589,501 (7.96%) Commonwealth Bank of Australia
20,301,923 (6.58%) AMP Limited
34,151,391 (11.50%) Macquarie Group Limited

Calendar of Events
Date Event
25 February 2014 Report (Interim)
27 September 2013 Report (Annual)
27 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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