CHARTER HALL GROUP — Earnings Release 2009

Aug 24, 2009

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 23] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

ASX ANNOUNCEMENT

CHARTER HALL FY09 RESULTS

Tuesday, 25 August 2009

FY09 IN SUMMARY

• Underlying Earnings of $34.8 million and Underlying EPS of 7.61 cents per security (cps)

• Full year distribution of $24.7 million representing 4.96cps

• Assets Under Management down to $3.4 billion from $3.9 billion at 30 June 2008

• Net tangible assets of $0.71 per security[1]

• Gearing of 2%[1]

KEY FINANCIALS

	FY09	FY08
Revenue	$57.9m	$88.5m
AIFRS profit/(loss) after tax	($82.2m)	$67.5m
Underlying Earnings2	$34.8m	$52.7m
Underlying EPS2	7.61cps	12.74cps
DPS	4.96cps	12.60cps
	30 June 09	30 June 08
NTA	$0.71	$1.19
Gearing3	2%	31%
Assets Under Management	$3.4bn	$3.9bn

1 Post completion of the sale of $30 million of CPOF units and settlement of Chullora sale to CPIF, gearing will be nil and NTA will be $0.69 per security.

2 Excluding fair value adjustments, gains on sale, non-cash tax benefits and non cash expenses.

3 Borrowings net of cash over total assets net of cash.

1

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 23] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

EARNINGS

Charter Hall Group has delivered Underlying Earnings for the 12 month period to 30 June 2009 of $34.8 million, representing Underlying EPS of 7.61cps.

The earnings were generated from revenue of $57.9 million, down from $88.5 million in the previous corresponding period. The reduction in revenue was mainly due to a reduced exposure to direct property following the sell down of equity in the Core Plus Retail Fund (CPRF) and a lower contribution from performance fees, transaction fees and development investment income.

An increase in base fund management, development management and property management fees partly offset the reduction in transactional revenue.

The Group recorded a statutory (AIFRS) loss after tax of $82.2 million. This loss is after the previously reported non-cash CIP investment impairment of $17.6 million[4] and non-cash fair value adjustments of $97.6 million, comprising a $77.6 million decline in value of investments in Charter Hall managed funds, a $9.2 million decline in the valuation of the mark to market of financial derivatives and a $10.8 million decrease in the value of direct property and other investments. These non-cash movements do not impact the operating cash flow or Underlying Earnings of the Group. The Group reported a healthy operating cash flow of $41.1 million for the period.

DISTRIBUTION

Charter Hall paid a distribution of 3.96cps for the 6 month period ending 31 December 2008. The distribution for the 6 month period ending 30 June 2009, to be paid on 28 August 2009, is confirmed at 1.00cps, in line with guidance provided at the 1H09 results in February this year. FY09 DPS of 4.96cps, or $24.7 million in aggregate is fully supported by Underlying Earnings of $34.8 million.

BALANCE SHEET AND CAPITAL MANAGEMENT

Charter Hall Group

Total Group assets decreased from $802 million at 30 June 2008 to $524 million. This reduction follows the sell down and de-consolidation of CPRF in July 2008 and a reduction in value of CHC’s other investments. CHC’s debt balance decreased from $261 million at 30 June 2008 to $14 million.

4 Based on an independent valuation.

2

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 23] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

Net tangible assets (NTA) per security at 30 June 2008 was $1.19 compared to $0.71 at 30 June 2009. This movement is mainly attributed to the downward revaluations of the Group’s investments and the capital raising of $76 million at 33cps undertaken in June 2009.

The $76 million equity raising was achieved through a placement of $27 million to the Gandel Group (Gandel) and an entitlement issue of $49 million. The proceeds of the capital raising have been utilised to pay down debt secured against co-investments.

Charter Hall welcomes Gandel as a strategic investor. Gandel has made an investment in CHC of $30 million[5] . This investment resulted in Gandel having a 12.2% interest in CHC. Gandel also committed to acquire up to $30 million of units held by Charter Hall in the Core Plus Office Fund (CPOF). In addition, Gandel will make a $15 million equity commitment to the Special Situations Fund (SSF), a new fund initiative managed by CHC. The first close for this fund is scheduled for 30 September 2009.

CHC gearing at 30 June 2009 was 2%, with look through gearing at 42.8%. On a proforma basis[6] CHC will not have any headstock debt and will have a cash balance of $33 million. Look through gearing on a proforma basis reduces to 32.8%.

During the year, Charter Hall raised further equity through the operation of the DRP. The Group raised $7.3 million over FY09 at an average CHC issue price of 30.4cps.

Charter Hall managed funds

Charter Hall has substantially de-risked its managed funds over FY09 through various capital management initiatives such as the refinancing of $1.1 billion of debt and $228 million of asset sales in CPOF, CPRF and DPF.

5 Gandel invested $27 million via a placement and $3 million of securities via the underwriting of the retail component of the equity raising in June 2009. 6 Following settlement of the Chullora asset sale from CHC to the Core Plus Industrial Fund (CPIF) and the settlement of the sale of $30 million of CPOF units held by CHC.

3

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 23] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

==> picture [196 x 22] intentionally omitted <==

The table below provides a summary overview of the capital management position in Charter Hall managed investment funds.

Fund7	CPOF	CPRF	CPIF	DPF
Asset values ($m)8	1,228	282	377	195
Net debt drawn ($m)	605	78	133	112
Duration (yrs)9	2.7	2.0	2.4	2.4
Current LVR10	49%	28%	35%	58%
LVR covenant11	57%	55%	55%	65%
LVR headroom12	13%	47%	35%	14%

EPS AND DPS OUTLOOK

Charter Hall provides FY10 Underlying EPS guidance of 3.75cps – 4.00cps and DPS guidance of 3.00cps – 3.20cps, subject to paying out taxable income as a minimum.

Please refer to the accompanying Appendix 4E and the FY09 Annual Results Presentation for a more comprehensive description and analysis of the Group’s FY09 results and the outlook for FY10.

ENDS

For further media enquiries or to arrange a media interview, please contact:

David Southon David Harrison Jo Stiles Joint Managing Director Joint Managing Director Marketing & Communications Manager 0418 479 155 0412 259 751 0414 499 199 davids@charterhall.com.au davidh@charterhall.com.au jos@charterhall.com.au

About the Charter Hall Group:

Charter Hall Group is a property funds management and development company, based in Sydney with offices in Melbourne, Brisbane, Perth, Adelaide and Auckland. Established in 1991 and listed on the ASX in 2005 as a stapled security under the code CHC, Charter Hall Group combines Charter Hall Limited with Charter Hall Property Trust. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 14 year history of managing wholesale capital, making it one of Australia’s leading property fund managers. Charter Hall’s success has been underpinned by a highly skilled and motivated management team with diverse expertise across property sectors and risk-return profiles.

7 Analysis excludes development related debt facilities.

8 Asset balance excludes cash.

• 9 Weighted average duration.

• 10 Property LVR covenants shown for all facilities.

11 Reflects weighted average LVR covenant.

12 Headroom percentage calculated as the percentage by which asset values can fall before breaching LVR covenants. This is calculated on a weighted average basis.

4