CHARTER HALL GROUP — Interim / Quarterly Report 2008

Feb 25, 2008

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ASX ANNOUNCEMENT

CHARTER HALL CONTINUES TO DELIVER STRONG EARNINGS

GROWTH

Tuesday, 26 February 2008

KEY FINANCIAL HIGHLIGHTS - 1[ST] HALF FY08

• Half year net profit after tax of $46.5 million, an increase of 186%

• Underlying profit increase 64% to $26.5 million, representing an underlying EPS of 6.32c per security compared to 4.67c per security in previous period

• Distribution of $26.5 million representing 6.30c per security, an increase of 32%

• Funds Under Management grew by $853 million from $2.8 billion to $3.7 billion

• Net tangible assets of $1.18 per security

• • Gearing of 29%

KEY RESULTS

	1H FY08	1H FY07	% change
NPAT (AIFRS)	$46.5m	$16.3m	+186%
Underlying NPAT1	$26.5m	$16.2m	+64%
Underlying EPS1	6.32c	4.67c	+35%
DPS	6.30c	4.77c	+32%

	31 Dec 07	30 Jun 07	% change
NTA	$1.18	$1.12	+5%
Gearing	29%	21%
Funds Under Management2	$3.7bn	$2.8bn	+32%

• 1 Underlying NPAT and EPS are before fair value gains and gains on sale of investments and after adding back AIFRS non cash expenses (eg share based remuneration expense and amortisation).

2 Measured on a completed basis

Charter Hall Limited

ABN 57 113 531 150

Level 11 | 333 George Street | SYDNEY | NSW 2000 GPO Box 2704 | SYDNEY NSW 2001 Ph: +61 2 8908 4000 | Fax: +61 2 8908 4040 www.charterhall.com.au

Charter Hall Funds Management Limited ABN 31 082 991 786 Sydney Brisbane Perth Melbourne Auckland

ASX ANNOUNCEMENT

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The strong financial results were driven by the following:

• Higher annuity style income comprising fund management fees and development management fees due to growth in funds under management.

• Increased distribution income from investments in the Core Plus Office Fund (20% interest), Core Plus Industrial Fund (25% interest) and Diversified Property Fund (14% interest).

• Additional rental income generated from the increased size of the retail portfolio held within the Core Plus Retail Fund.

• Strong revaluation gains from investments held across all managed funds and directly owned assets.

• Gains on sale of investments.

• Significant profit contribution from CIP (50% interest acquired in July 2007).

The distribution for the period, to be paid on 29 February 2008, is 6.30c per stapled security which is 32% higher than the previous corresponding period (“pcp”) . DPS is fully supported by underlying EPS of 6.32c .

Funds under management have grown to $3.7 billion, from $2.8 billion at 30 June 2007 and $2.1 billion as at 31 December 2006, providing the Group with solid annuity earning streams.

Importantly, committed equity yet to be drawn and allocated within unlisted managed funds provides further asset under management capacity of approximately $1.3 billion.

GEARING AND BALANCE SHEET

As at 31 December 2007, the audited balance sheet gearing was 29%[1] with “look through” gearing at 40%[2] . The Group’s debt facility has a duration of 2.5 years, unless extended further.

Net tangible assets per security have increased from $1.12 at 30 June 2007 to $1.18 as at 31 December 2007.

FUND/INVESTMENT PERFORMANCE

The Group continues to deliver out-performance well above targeted hurdle rate benchmarks in all managed funds. This out-performance increases performance fee potential and traction in securing further equity commitments across various un-listed managed funds.

1 Gearing calculated as Total Debt net of Cash over Total Assets net of Cash.

2 “Look through” gearing calculated having regard to Charter Hall’s investments in its managed funds and the level of gearing in these funds.

Charter Hall Limited Level 11 | 333 George Street | SYDNEY NSW 2000 ABN 57 113 531 150 GPO Box 2704 | SYDNEY NSW 2001 Charter Hall Funds Management Limited Ph: +61 2 8908 4000 | Fax: +61 2 8908 4040 ABN 31 082 991 786 www.charterhall.com.au Sydney Brisbane Perth Melbourne Auckland

ASX ANNOUNCEMENT

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OUTLOOK

The Group has significant scope within off balance sheet managed funds to utilise committed equity and debt facilities to fund asset growth and portfolio diversification whilst pursuing its co-investment strategy in existing and new unlisted funds.

Market volatility will potentially create opportunities for the Charter Hall Group and its managed funds, which are substantially capitalised with equity commitments from large wholesale investors. The Group intends to capitalise on such opportunities using its experience in the opportunistic and value add space to exploit attractive asset pricing that may emerge for property with higher risks, i.e. development sites or low WALE investment properties.

The Core Plus portfolios feature WALE’s averaging 9 years, underpinned by excellent tenant covenants with over 70% of income generated by Government, public companies or national tenants. Such portfolios provide scope within the Core Plus mandates to take advantage of opportunities as they arise.

Joint Managing Directors, David Southon and David Harrison said: “We believe the Charter Hall development and value add expertise and stable executive team provides potential to create further value within our property portfolios, a feature of the Group’s track record since 1991. We further expect the polarisation of debt markets will create a tighter buyer market for development and value add assets as financiers become more selective with their clients”.

FURTHER INFORMATION

Please refer to the statutory financial accounts and detailed results presentation for further information on the Group’s results and managed funds update.

ENDS

For more information contact Charter Hall Group:

David Southon David Harrison Peter Roberts Joint Managing Director Joint Managing Director Chief Financial Officer + 61 2 8908 4025 + 61 2 8908 4033 + 61 2 8908 4047 davids@charterhall.com.au davidh@charterhall.com.au peterr@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 Brisbane, Perth 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 Group currently has funds under management in excess of $3.7 billion. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 10 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, incentivised and motivated management team with diverse expertise across property sectors and risk-return profiles.

Charter Hall Limited

ABN 57 113 531 150 Charter Hall Funds Management Limited ABN 31 082 991 786 Sydney Brisbane Perth Melbourne Auckland

Level 11 | 333 George Street | SYDNEY NSW 2000 GPO Box 2704 | SYDNEY NSW 2001 Ph: +61 2 8908 4000 | Fax: +61 2 8908 4040 www.charterhall.com.au