Diversified property funds investor Charter Hall will focus on expanding its funds under management through the purchase of assets and an increased level of co-investments in the industrial and retail property sectors.
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The group reported operating earnings of $81.2 million for the year to June 30, up 18 per cent from $68.8 million, which was in line with market expectations.
The annual distribution of 22.3¢ was up from 20.20¢ in the previous year and included a payment of 11¢ for the second half. It will be paid on Friday, August 29.
Charter Hall's business is focused on its two key earnings streams, Property Investment income generated from co-investing with external capital partners in property funds, and partnerships and earnings generated from Property Funds Management, which develops assets, including the new 333 George Street office and retail property (pictured).
The company is talking to a range of office and retail tenants for the George Street site, with suggestions the UK Marks & Spencer department chain has shown some interest - its first foray into Australia.
Joint managing director David Harrison said over the course of the year, Charter Hall's total funds under management increased by 15 per cent to $11.5 billion, driven by combined acquisition and divestments of $3 billion.
The Property Investments division reported operating earnings of $49.7 million, up 11.7 per cent, while Property Funds Management had operating earnings of $34.6 million, up 26.6 per cent.
"The guidance, excluding unforeseen issues, for 2015 operating earnings per security growth is currently towards the lower end of a range of 5 to 7 per cent, with achievement within this range primarily dependant on the timing of deployment of balance sheet investment capacity in 2015," Mr Harrison said.
"Australian property income to debt spreads remain attractive for both domestic and offshore investors, which is expected to continue to assist the growth in funds under management."
Over the year, the group has increased its exposure in direct ownership of retail and industrial assets, including Bunnings warehouse fund.
Brokers said the growth in 2015 will be driven by underlying growth of about 5 per cent and the full period benefit of deployment of the February 2014 equity raising.
Joint managing director David Southon indicated the group assumes the low end of growth range, adding it will come down to the timing of deployment of balance sheet capacity.
Mr Southon said the group would focus on redevelopment opportunities to enhance both income yield and total returns. It has $1.2 billion of development work in progress across all sectors, split between about $700 million in office, and $200 million each in industrial and retail.
