CHARTER HALL GROUP — Annual Report 2023

Aug 20, 2023

Appendix 4E Financial Report

Page 1

APPENDIX 4E

Financial Report for the year ended 30 June 2023

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 2023.

Results for announcement to the market

Results for announcement to the market
	Year Ended Year Ended Variance 30 June 30 June 2023 2022 $m $m (%)
Revenue1	869.7 1,098.3 (20.8)
Profit after tax attributable to stapled securityholders of Charter Hall Group	196.1 911.1 (78.5)
Operatingearnings attributable to stapled securityholders2	441.2 542.8 (18.7)

• 1 Gross revenue does not include share of net losses of associates and joint ventures of $83.4 million (2022: $544.9 million profit).

• 2 Operating earnings is a financial measure which represents statutory profit after tax adjusted for proportionately consolidated fair value adjustments, gains or losses on sale of investments, amortisation and/or impairment of intangible assets, performance fee expenses, non-operating tax expense and other unrealised or one-off items. Operating earnings is the primary measure of the Group’s underlying and recurring earnings. 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 1 of the financial report.

	Year Ended Year Ended Variance 30 June 30 June 2023 2022 cps cps (%)
Basic statutory earnings per stapled security attributable to stapled securityholders	41.5 194.1 (78.6)
Diluted statutory earnings per stapled security attributable to stapled securityholders	40.7 191.0 (78.7)
Operating earnings per stapled security attributable to stapled securityholders	93.3 115.6 (19.3)

Dividends and distributions	Year Ended 30 June 2023	Year Ended 30 June 2022
Final franked dividend and distribution in respect of a: CHPT unit CHL share Interim franked dividend and distribution in respect of a: CHPT unit CHL share	11.90¢ 9.80¢ 11.46¢ 9.38¢	11.27¢ 9.20¢ 11.33¢ 8.33¢
Total Record date for determining entitlements to the dividend/distribution Payment date	42.54¢	40.13¢
	30 June 2023
	31 August 2023

Appendix 4E Financial Report

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Results for announcement to the market (continued)

Net Tangible Assets

Results for announcement to the market (continued) Net Tangible Assets
	As at 30 June 2023	As at 30 June 2022
Net tangible assets(NTA) per stapled security 1	$6.28	$6.26

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 2023 is 473.0 million (2022: 473.0 million).

Control gained or lost over entities during the year

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

• CHC SX Trust (wholly owned entity established on the 16 June 2022)

• Charter Hall Wholesale Property Series No.2 (partially owned entity control lost on the 1 July 2022)

• CHI Property No.1 Pty Limited (formerly: Irongate Property No.1 Pty Limited) (wholly owned entity acquired on the 8 July 2022)

• CHI Property No.2 Pty Limited (formerly: Irongate Property No. 2 Pty Limited) (wholly owned entity acquired on the 8 July 2022)

• Irongate FM No.1 Pty Limited (wholly owned entity acquired on the 8 July 2022)

• Irongate FM No.2 Pty Limited (wholly owned entity acquired on the 8 July 2022)

• Irongate Funds Management Limited (wholly owned entity acquired on the 8 July 2022)

• CHI Property Fund II (formerly: Irongate Property Fund II) (wholly owned entity acquired on the 8 July 2022)

• Irongate Property Holdings Pty Limited (wholly owned entity acquired on the 8 July 2022)

• Irongate Property Management Pty Limited (wholly owned entity acquired on the 8 July 2022)

• Irongate Property Management Trust (wholly owned entity acquired on the 8 July 2022)

• Irongate Templewater No.1 Pty Ltd (wholly owned entity acquired on the 8 July 2022)

• Irongate Templewater No.2 Pty Ltd (wholly owned entity acquired on the 8 July 2022)

• CPIF Myer Pty Ltd (wholly owned entity established on the 13 July 2022)

• CPIF Oakleigh South Pty Ltd (wholly owned entity established on the 29 July 2022)

• CPIF Hoppers Crossing Pty Ltd (wholly owned entity established on the 29 July 2022)

• CHAB Office No. 2 Pty Limited (partly owned entity established on the 16 August 2022)

• Charter Hall Co-Investment Trust 13 (wholly owned entity established on the 5 September 2022)

• CHOF6 Genge Street Trust (wholly owned entity established on the 14 October 2022)

• Charter Hall Co-Investment Trust 14 (wholly owned entity established on the 26 October 2022)

• CHOF6 Bringelly Trust (wholly owned entity established on the 10 November 2022)

• The Trustee for the Charter Hall Co-Investment Trust 15 (wholly owned entity established on the 9 February 2023)

• • The Trustee for the Charter Hall Debt Investment Partnership No.1 Trust (wholly owned entity established on the 9 February 2023)

• Charter Hall Spring Trust (wholly owned entity established on the 9 February 2023)

• Charter Hall Co-Investment Trust 16 (wholly owned entity established on the 24 March 2023)

• Charter Hall Co-Investment Trust 17 (wholly owned entity established on the 24 March 2023)

• Charter Hall Co-Investment Trust 18 (wholly owned entity established on the 24 March 2023)

• Charter Hall Co-Investment Trust 19 (wholly owned entity established on the 24 March 2023)

• Charter Hall Co-Investment Trust 20 (wholly owned entity established on the 24 March 2023)

• CHOF6 JW Trust (wholly owned entity established on the 29 March 2023)

• Irongate FM No.1 Pty Limited (wholly owned entity control lost on the 31 March 2023)

• Irongate FM No.2 Pty Limited (wholly owned entity control lost on the 31 March 2023)

• • Irongate Funds Management Limited (wholly owned entity control lost on the 31 March 2023) • Irongate Property Holdings Pty Limited (wholly owned entity control lost on the 31 March 2023) • Irongate Property Management Trust (wholly owned entity control lost on the 31 March 2023) • Irongate Property Management Pty Limited (wholly owned entity control lost on the 31 March 2023) • Irongate Templewater No.1 Pty Ltd (wholly owned entity control lost on the 31 March 2023) • Irongate Templewater No.2 Pty Ltd (wholly owned entity control lost on the 31 March 2023) • CHPT Excluded Holdings (wholly owned entity established on the 15 June 2023) • CHPT EX 1 Trust (wholly owned entity established on the 15 June 2023) • CHPT EX 2 Trust (wholly owned entity established on the 15 June 2023) • CHPT EX 3 Trust (wholly owned entity established on the 15 June 2023) • CHOF6 Excluded Holdings (wholly owned entity established on the 15 June 2023) • CHOF6 EX 1 Trust (wholly owned entity established on the 15 June 2023) • CHOF6 EX 2 Trust (wholly owned entity established on the 15 June 2023) • CHOF6 EX 3 Trust (wholly owned entity established on the 15 June 2023)

Appendix 4E Financial Report

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Results for announcement to the market (continued)

• CHPT EX SPV 1 Trust (wholly owned entity established on the 20 June 2023)

• CHPT EX SPV 2 Trust (wholly owned entity established on the 20 June 2023)

• CHPT EX SPV 3 Trust (wholly owned entity established on the 20 June 2023)

• CHOF6 EX SPV 1 Trust (wholly owned entity established on the 20 June 2023)

• CHOF6 EX SPV 2 Trust (wholly owned entity established on the 20 June 2023)

• CHOF6 EX SPV 3 Trust (wholly owned entity established on the 20 June 2023)

Appendix 4E Financial Report

Page 4

Results for announcement to the market (continued)

Details of Associates and Joint Venture entities

The Group’s Associates and Joint Venture entities and its percentage holding are set out below:

Associates

• CH Deep Value AREIT Partnership Trust (14.0%)

• • CH Deep Value AREIT Partnership Trust 3 (31.4%) • Charter Hall Australian Convenience Retail Trust (2.5%) • Charter Hall Australian Investment Trust (10.0%) • Charter Hall Canberra Office Trust (5.0%) • Charter Hall Crestmead Wholesale Trust (0.1%) • Charter Hall Counter Cyclical Trust (5.0%) • Charter Hall Direct Office Fund (8.6%) • Charter Hall Direct PFA Fund (12.4%) • Charter Hall Direct Plumpton Fund (20.0%) • Charter Hall Direct Truganina Fund (18.8%) • Charter Hall Direct Wollert Fund (25.0%) • Charter Hall Exchange Wholesale Trust (3.0%) • Charter Hall Long WALE REIT (10.7%) • Charter Hall Maxim Income Fund (21.9%) • Charter Hall Maxim Property Securities Fund (14.1%) • Charter Hall Office Trust (15.7%) • Charter Hall Prime Industrial Fund (1.3%) • Charter Hall Prime Office Fund (4.8%) • Charter Hall Retail REIT (10.7%) • Charter Hall Social Infrastructure REIT (8.7%) • Core Logistics Partnership (5.6%) • Deep Value Partnership (13.0%) • DOF Mary Street Wholesale Trust (0.1%) • DVP2 Trust (14.3%) • Long WALE Investment Partnership (0.1%) • Retail Partnership No. 2 Trust (0.2%)

Joint Ventures

•	CH 201 Elizabeth Holding Trust (5.9%)
•	CH 242 Exhibition Street Holding Trust (1.8%)
•	CH A Logistics Wholesale Fund (0.1%)
•	CH Castlereagh Trust (50.1%)
•	CH Genge Office Trust (49.9%)
•	CHAB 247 Adelaide Street Trust (50.0%)
•	CH DJ Trust (43.2%)
•	Charter Hall Koala Investment Partnership (20.0%)
•	Brisbane Square Wholesale Fund (16.8%)
•	1 Brisbane Trust (24.8%)
•	BP Fund1(17.3%)
•	BP Fund 21(18.3%)
•	Charter Hall PGGM Industrial Partnership (12.0%)
•	Charter Hall PGGM Industrial Partnership 2 (12.0%)
•	DVP2 Castlereagh St Trust (7.1%)
•	Folkestone ID Land Gisborne JV (50.0%)
•	Folkestone Lyon Hornsby Joint Venture (50.0%)
•	Paradice Investment Management (50.0%)

1Forms the Long WALE Hardware Partnership.

Further information about the Group’s Associates and Joint Venture entities is set out in Note 2 and Note 3 of the attached financial report.

Appendix 4E Financial Report

Page 5

Results for announcement to the market (continued)

Other significant information

For additional information regarding the results of Charter Hall Group for the year ended 30 June 2023 please refer to the Full Year Results – ASX Media Announcement and the 2023 Full 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 2023.

Accounting standards used by foreign entities

International Financial Reporting Standards.

Segment results

Refer attached financial report (Note 1: 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.