CHARTER HALL GROUP — Interim / Quarterly Report 2016

Feb 24, 2016

Appendix 4D Interim Financial Report

Page 1

APPENDIX 4D

Interim Financial Report for the half year ended 31 December 2015

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 4D should be read in conjunction with the interim financial report of the Charter Hall Group for the half year ended 31 December 2015.

Results for announcement to the market

Results for announcement to the market	Results for announcement to the market
		6 months to6 months toVariance31 December31 December20152014$m$m(%)
Revenue 1		81.3 66.921.5
Profit afteCharter H	r tax attributable to stapled securityholders ofall Group	143.5	3	9.9	259.6
Operating	earnings attributable to stapled securityholders 2	61.2	4	8.4	26.3
	revenue does not include share of net profits of associatesi i fiil hih	and joint ventures offi f	$116.4 million (2014:ill	$26.6 million).i fi l
	ng earnngs s a nanca measure wc represents statuments, gains or losses on sale of investments and non-cas	ory prot adjusted oh items such as amor	proportonay consotisation. The inclusion	dated ar vaueof operating earn

1 Gross revenue does not include share of net profits of associates and joint ventures of $116.4 million (2014: $26.6 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 and non-cash items such as amortisation. 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 interim financial report.

	6 months to6 months toVariance31 December31 December20152014cpscps(%)
Basic statutory earnings per stapled security attributable tostapled securityholders	35.111.3210.3
Diluted statutory earnings per stapled security attributable tostapled securityholders	34.811.2210.7
Operating earnings per stapled security attributable to stapledsecurityholders	15.013.7 9.5

Distributions	31 December 2015	31 December 2014
Interim distribution in respect of a:CHPT unitCHL shareRecord date for determining entitlements to the distributionPayment date	13.3¢-	12.1¢ -
	31 December 2015
	26February2016

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 half year to 31 December 2015.

Appendix 4D Interim Financial Report

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Results for announcement to the market (continued)

The DRP issue price is determined at a discount of 1% to the volume weighted average market prices of stapled securities traded on the ASX over the 15 business days from 6 January 2016 to 27 January 2016 inclusive. The Group expects to raise $15.4 million from the DRP for the 31 December 2015 distribution ($4.3430 issue price).

The Group recorded a statutory profit after tax attributable to stapled securityholders for the half year of $143.5 million compared to $39.9 million for the half year ended 31 December 2014.

Operating earnings amounted to $61.2 million for the half year compared to $48.4 million in 2014, an increase of 26.3% over the prior period.

Net Tangible Assets

Net Tangible Assets
Net tangible assets(NTA) per stapled security 1	As at31 December 2015	As at30 June 2015
	$2.98	$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 31 December 2015 is 409.2 million (30 June 2015: 406.8 million).

Control gained or lost over entities during the period

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

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

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

Details of Associates and Joint Venture entities

Refer attached interim financial report (Note 6: Investments in associates and joint ventures).

Other significant information

For additional information regarding the results of Charter Hall Group for the half year ended 31 December 2015 please refer to the Half Year Results – ASX Media Announcement and the Half Year Results Presentation for the six months to 31 December 2015 lodged with the ASX. Attached with this Appendix 4D is a copy of the interim financial report for the half year ended 31 December 2015.

Accounting standards used by foreign entities

International Financial Reporting Standards.

Segment results

Refer attached interim 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 orsubject to review.		The accounts have not yet been audited or reviewed.