CHARTER HALL GROUP — Interim / Quarterly Report 2017

Feb 23, 2017

Appendix 4D Interim Financial Report

Page 1

APPENDIX 4D

Interim Financial Report for the half year ended 31 December 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 4D should be read in conjunction with the interim financial report of the Charter Hall Group for the half year ended 31 December 2016.

Results for announcement to the market

Results for announcement to the market
	6 months to	6 months to	Variance
	31 December	31 December
	2016	2015
	$m	$m	(%)
Revenue1	110.9	81.3	36.4
Profit after tax attributable to stapled securityholders of
Charter Hall Group	173.3	143.5	20.8
Operatingearnings attributable to stapled securityholders2	80.8	61.2	32.0

1 Gross revenue does not include share of net profits of associates and joint ventures of $136.6 million (2015: $116.4 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, current tax expense 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 interim financial report.

	6 months to	6 months to	Variance
	31 December	31 December
	2016	2015
	**cps **	cps	(%)
Basic statutory earnings per stapled security attributable to
stapled securityholders	42.0	35.1	19.7
Diluted statutory earnings per stapled security attributable to
stapled securityholders	41.7	34.8	19.8
Operating earnings per stapled security attributable to stapled
securityholders	19.6	15.0	30.7

Distributions	6 months to	6 months to
	31 December	31 December
	2016	2015
Interim distribution in respect of a:
CHPT unit	14.4¢	13.3¢
CHL share	-	-
Total	14.4¢	13.3¢
Record date for determining entitlements to the distribution	31 December 2016
Payment date	28 February2017

The Group recorded a statutory profit after tax attributable to stapled securityholders for the half year ended 31 December 2016 of $173.3 million compared to $143.5 million for the half year ended 31 December 2015.

Operating earnings amounted to $80.8 million for the half year ended 31 December 2016 compared to $61.2 million for the half year ended 31 December 2015, an increase of 32.0%.

Appendix 4D Interim Financial Report

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Results for announcement to the market (continued)

Net Tangible Assets

Net tangible assets(NTA) per stapled security 1	As at31 December 2016$3.32	As at30 June 2016 $3.04

• 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 2016 is 412.7 million (30 June 2016: 412.7 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 (sold 100% interest on 10 November 2016)

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 2016 please refer to the Half Year Results – ASX Media Announcement and the Half Year Results Presentation for the half year to 31 December 2016 lodged with the ASX. Attached with this Appendix 4D is a copy of the interim financial report for the half year ended 31 December 2016.

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