CHARTER HALL GROUP — Annual Report 2016

Aug 21, 2016

Appendix 4E Financial Report

Page 1

APPENDIX 4E

Financial Report for the year ended 30 June 2016

Name of Entity:

The Charter Hall Group (CHC) - comprising the stapling of ordinary shares in Charter Hall Limited (CHL) (ACN 113 531 150) and units in Charter Hall Property Trust (CHPT) (ARSN: 113 339 147)

The Appendix 4E should be read in conjunction with the financial report of the Charter Hall Group for the year ended 30 June 2016.

Results for announcement to the market

	Year ended Year ended Variance 30 June 30 June 2016 2015 $m $m (%)
Revenue 1	165.3 135.8 21.7
Profit after tax attributable to stapled securityholders of Charter Hall Group	215.2 117.9 82.5
Operating earnings attributable to stapled securityholders 2	124.7 98.8 26.2

1 Gross revenue does not include share of net profits of associates and joint ventures of $168.3 million (2015: $88.4 million).

• 2 Operating earnings is a financial measure which represents statutory profit adjusted for proportionally consolidated fair value adjustments, gains or losses on sale of investments, amortisation and / or impairment of intangible assets and other unrealised or one-off items. The inclusion of operating earnings as a measure of the Group’s profitability provides investors with the same basis that is used internally for evaluating operating segment performance. Operating earnings is used by the Board to make strategic decisions and as a guide to assessing an appropriate distribution to declare.

A reconciliation of the Group’s operating earnings to statutory profit is provided in Note 3 of the financial report.

	Year ended Year ended Variance 30 June 30 June 2016 2015 cps cps (%)
Basic statutory earnings per stapled security attributable to stapled securityholders	52.5 32.8 60.1
Diluted statutory earnings per stapled security attributable to stapled securityholders	52.0 32.3 61.0
Operating earnings per stapled security attributable to stapled securityholders	30.4 27.5 10.5

Distributions	Year ended 30 June 2016	Year ended 30 June 2015
Final distribution in respect of a: CHPT unit CHL share Interim distribution in respect of a: CHPT unit CHLshare	13.6¢ - 13.3¢ -	12.1¢ - 12.1¢ -
Total Record date for determining entitlements to the distribution Payment date	26.9¢	24.2¢
	30 June 2016
	25 August 2016

Appendix 4E Financial Report

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Results for announcement to the market (continued)

The Group has a Distribution Reinvestment Plan (DRP) under which securityholders may elect to have all or part of their distribution entitlements satisfied by the issue of new securities rather than being paid in cash. The DRP was in operation for the distribution paid on 26 February 2016, however was suspended for the distribution to be paid on 25 August 2016.

The Group recorded a statutory profit after tax attributable to stapled securityholders for the year of $215.2 million compared to $117.9 million for the year ended 30 June 2015.

Operating earnings amounted to $124.7 million for the year compared to $98.8 million in 2015, an increase of 26.2% over the prior year.

Net Tangible Assets

Net tangible assets(NTA) per stapled security 1	As at 30 June 2016	As at 30 June 2015
	$3.04	$2.76

• 1 Under the listing rules NTA must be determined by deducting from total tangible assets all claims on those assets ranking ahead of the ordinary securities (ie: all liabilities, preference shares, outside equity interest etc).

The number of securities on issue at 30 June 2016 is 412.7 million (30 June 2016: 406.8 million).

Control gained or lost over entities during the year

The following changes in control occurred within the Group during the year:

• CHPT Dandenong Trust (Established 100% interest on 9 November 2015);

• Charter Hall Asset Services Europe Sp z.o.o. (De-registered 23 October 2015);

• Charter Hall WALE Limited (Established 100% interest on 16 February 2016);

• Charter Hall Real Estate Management Services Pty Limited (De-registered 6 January 2016);

Details of Associates and Joint Venture entities

Refer attached financial report (Note 30 Investments in associates and Note 31 Investments in joint ventures).

Other significant information

For additional information regarding the results of Charter Hall Group for the year ended 30 June 2016 please refer to the Full Year Results – ASX Media Announcement and the 2016 Year Results Presentation lodged with the ASX. Attached with this Appendix 4E is a copy of the financial report for the year ended 30 June 2016.

Accounting standards used by foreign entities

International Financial Reporting Standards.

Segment results

Refer attached financial report (Note 3: Segment information).

Other Factors

Refer to other significant information (above).

Audit

This report is based on accounts to which one of the following applies: (tick one)

	The accounts have been audited. (refer attached financial statements)		The accounts have been subject to review. (refer attached financial statements)
	The accounts are in the process of being audited or subject to review.		The accounts have not yet been audited or reviewed.