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Charter Hall Group

ASX:CHC
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHC
ASX
A$5B
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

With over 28 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups. The last earnings update was 55 days ago. More info.


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CHC Share Price and Events
7 Day Returns
-1.5%
ASX:CHC
0.1%
AU REITs
1.3%
AU Market
1 Year Returns
68%
ASX:CHC
20.5%
AU REITs
9.9%
AU Market
CHC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Charter Hall Group (CHC) -1.5% 4% -0.3% 68% 129.8% 174.9%
AU REITs 0.1% 0.4% -2.8% 20.5% 23.4% 58.9%
AU Market 1.3% -0.6% -1% 9.9% 17.6% 17.8%
1 Year Return vs Industry and Market
  • CHC outperformed the REITs industry which returned 20.5% over the past year.
  • CHC outperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
CHC
Industry
5yr Volatility vs Market

CHC Value

 Is Charter Hall Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Charter Hall Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Charter Hall Group.

ASX:CHC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:CHC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.47 (1 + (1- 30%) (5.81%))
0.658
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:CHC using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

ASX:CHC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$16.34
Current discount Discount to share price of A$11.49
= -1 x (A$11.49 - A$16.34) / A$16.34
29.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Charter Hall Group is available for.
Intrinsic value
30%
Share price is A$11.49 vs Future cash flow value of A$16.34
Current Discount Checks
For Charter Hall Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Charter Hall Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Charter Hall Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Charter Hall Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Charter Hall Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CHC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.51
ASX:CHC Share Price ** ASX (2019-10-11) in AUD A$11.49
Australia REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 15.7x
Australia Market PE Ratio Median Figure of 557 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Charter Hall Group.

ASX:CHC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:CHC Share Price ÷ EPS (both in AUD)

= 11.49 ÷ 0.51

22.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charter Hall Group is overvalued based on earnings compared to the AU REITs industry average.
  • Charter Hall Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Charter Hall Group's expected growth come at a high price?
Raw Data
ASX:CHC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
7.3%per year
Australia REITs Industry PEG Ratio Median Figure of 31 Publicly-Listed REITs Companies 1.2x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

ASX:CHC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.6x ÷ 7.3%

3.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charter Hall Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Charter Hall Group's assets?
Raw Data
ASX:CHC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$4.10
ASX:CHC Share Price * ASX (2019-10-11) in AUD A$11.49
Australia REITs Industry PB Ratio Median Figure of 43 Publicly-Listed REITs Companies 1.11x
Australia Market PB Ratio Median Figure of 1,705 Publicly-Listed Companies 1.8x
ASX:CHC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:CHC Share Price ÷ Book Value per Share (both in AUD)

= 11.49 ÷ 4.10

2.8x

* Primary Listing of Charter Hall Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charter Hall Group is overvalued based on assets compared to the AU REITs industry average.
X
Value checks
We assess Charter Hall Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Charter Hall Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CHC Future Performance

 How is Charter Hall Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Charter Hall Group expected to grow at an attractive rate?
  • Charter Hall Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Charter Hall Group's earnings growth is positive but not above the Australia market average.
  • Charter Hall Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CHC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CHC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 7.3%
ASX:CHC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -4.1%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average 2.5%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -3.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.2%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:CHC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CHC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30 503 170 341 2
2021-06-30 433 184 243 3
2020-06-30 524 229 301 3
2019-10-13
ASX:CHC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 527 194 237
2019-03-31 488 190 250
2018-12-31 450 187 264
2018-09-30 433 178 258
2018-06-30 415 167 251
2018-03-31 398 157 228
2017-12-31 381 146 205
2017-09-30 402 151 231
2017-06-30 424 156 258
2017-03-31 405 152 251
2016-12-31 387 148 245
2016-09-30 365 139 230

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Charter Hall Group's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
  • Charter Hall Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:CHC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Charter Hall Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CHC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30 0.69 0.69 0.69 1.00
2021-06-30 0.51 0.55 0.47 2.00
2020-06-30 0.64 0.72 0.56 2.00
2019-10-13
ASX:CHC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.51
2019-03-31 0.54
2018-12-31 0.57
2018-09-30 0.55
2018-06-30 0.54
2018-03-31 0.50
2017-12-31 0.46
2017-09-30 0.53
2017-06-30 0.61
2017-03-31 0.60
2016-12-31 0.59
2016-09-30 0.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Charter Hall Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Charter Hall Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Charter Hall Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CHC Past Performance

  How has Charter Hall Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Charter Hall Group's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Charter Hall Group's year on year earnings growth rate has been positive over the past 5 years.
  • Charter Hall Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Charter Hall Group's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.
Earnings and Revenue History
Charter Hall Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Charter Hall Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CHC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 527.40 236.80 30.70
2019-03-31 487.90 250.40 28.45
2018-12-31 449.80 264.00 25.30
2018-09-30 433.25 257.60 24.70
2018-06-30 415.30 251.20 25.00
2018-03-31 398.11 228.15 24.53
2017-12-31 380.93 205.11 24.07
2017-09-30 402.36 231.35 22.63
2017-06-30 423.80 257.60 21.20
2017-03-31 405.43 251.31 19.89
2016-12-31 387.06 245.03 18.58
2016-09-30 365.31 230.13 18.43
2016-06-30 343.56 215.24 18.27
2016-03-31 341.97 218.36 17.20
2015-12-31 340.38 221.47 16.14
2015-09-30 283.45 169.68 15.36
2015-06-30 226.51 117.89 14.59
2015-03-31 211.38 105.66 14.46
2014-12-31 196.25 93.44 14.33
2014-09-30 189.87 87.78 13.95
2014-06-30 183.50 82.12 13.56
2014-03-31 170.52 68.00 13.42
2013-12-31 157.55 53.88 13.28
2013-09-30 157.53 54.14 12.92
2013-06-30 157.50 54.39 12.56
2013-03-31 150.24 38.71 26.30
2012-12-31 142.98 23.02 40.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Charter Hall Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Charter Hall Group used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.
  • Charter Hall Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Charter Hall Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Charter Hall Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CHC Health

 How is Charter Hall Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Charter Hall Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Charter Hall Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Charter Hall Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Charter Hall Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Charter Hall Group Company Filings, last reported 3 months ago.

ASX:CHC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,959.90 311.10 113.90
2019-03-31 1,959.90 311.10 113.90
2018-12-31 1,923.50 287.20 115.00
2018-09-30 1,923.50 287.20 115.00
2018-06-30 1,858.20 5.00 94.90
2018-03-31 1,858.20 5.00 94.90
2017-12-31 1,782.26 4.67 87.34
2017-09-30 1,782.26 4.67 87.34
2017-06-30 1,722.30 0.00 174.40
2017-03-31 1,722.30 0.00 174.40
2016-12-31 1,437.70 0.00 43.06
2016-09-30 1,437.70 0.00 43.06
2016-06-30 1,311.08 0.00 145.36
2016-03-31 1,311.08 0.00 145.36
2015-12-31 1,295.02 0.00 61.15
2015-09-30 1,295.02 0.00 61.15
2015-06-30 1,200.46 0.00 151.59
2015-03-31 1,200.46 0.00 151.59
2014-12-31 928.20 0.39 12.39
2014-09-30 928.20 0.39 12.39
2014-06-30 917.09 0.00 50.18
2014-03-31 917.09 0.00 50.18
2013-12-31 757.50 39.66 14.33
2013-09-30 757.50 39.66 14.33
2013-06-30 740.29 27.46 12.24
2013-03-31 740.29 27.46 12.24
2012-12-31 750.72 37.36 25.47
  • Charter Hall Group's level of debt (15.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 15.9% today).
  • Debt is well covered by operating cash flow (62.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.7x coverage).
X
Financial health checks
We assess Charter Hall Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Charter Hall Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CHC Dividends

 What is Charter Hall Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.99%
Current annual income from Charter Hall Group dividends. Estimated to be 3.56% next year.
If you bought A$2,000 of Charter Hall Group shares you are expected to receive A$60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Charter Hall Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Charter Hall Group's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:CHC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 407 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:CHC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.54 1.00
2023-06-30 0.51 1.00
2022-06-30 0.42 5.00
2021-06-30 0.40 6.00
2020-06-30 0.37 6.00
2019-10-13
ASX:CHC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-29 0.344 2.922
2018-12-11 0.330 3.411
2018-06-18 0.324 4.696
2017-12-08 0.312 5.220
2017-06-19 0.312 5.546
2017-02-23 0.288 5.119
2016-06-17 0.272 5.474
2015-12-15 0.266 5.678
2015-06-11 0.242 5.397
2014-12-15 0.242 4.942
2014-06-20 0.226 5.198
2013-12-16 0.220 5.513
2013-06-19 0.208 5.576
2012-12-17 0.196 5.200
2012-06-18 0.182 6.724
2012-02-22 0.182 8.131
2011-06-20 0.170 8.686
2011-02-23 0.160 6.675
2010-09-30 0.128 5.457
2010-08-23 0.128 5.366
2009-08-25 0.198 7.731
2009-02-24 0.410 28.704

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Charter Hall Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Charter Hall Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Charter Hall Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Charter Hall Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CHC Management

 What is the CEO of Charter Hall Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Harrison
COMPENSATION A$4,489,646
AGE 53
TENURE AS CEO 15 years
CEO Bio

Mr. David William Harrison has been Group Chief Executive Officer and Managing Director at Charter Hall Group since February 16, 2016. He is responsible for all aspects of the Charter Hall business, with specific focus on strategy and continuing the momentum from building an Investment Manager recognized as a multi-core sector market leader. Mr. Harrison has several years of property market experience across office, retail and industrial sectors in multiple geographies globally. Mr. Harrison was Alternate Executive Director at Charter Hall Education Trust until November 2018. He serves as MD, and Group CEO of Charter Hall Retail Management Limited at Charter Hall Retail REIT. Mr. Harrison is responsible for investment management, strategy, corporate transactions and property investment activities at Charter Hall Group and overseeing the operation of the investment management divisions, including the listed REITs, wholesale unlisted and retail unlisted divisions, together with investor relations and transactions. Prior to this, he was a Managing Director at Savills in Australia. Mr. Harrison has transacted approximately $6 billion of commercial, retail and industrial property assets across all capital city of Australia over ten years. He serves as a Director of Charter Hall Office Management Limited. He has been an Executive Director of Charter Hall Retail Management Limited since March 1, 2010. He has been an Executive Director of Charter Hall WALE Limited at Charter Hall Long WALE REIT since February 16, 2016 and also serves as its Chief Executive Officer. Mr. Harrison serves as an Executive Director of Charter Hall Funds Management Ltd. He has overseen the growth of the Charter Hall Group from $500 million to $23.2 billion of assets under management in 14 years. He was a Director of Charter Hall Education Trust since December 17, 2018. Mr. Harrison has been an Executive Director of Charter Hall Group since August 30, 2006. He served as the Chairman of Charter Hall Office Management Limited until April 28, 2011. He has an extensive Australian commercial property markets experience. He is Director of Charter Hall Retail REIT. He is a Director and Vice-President of the Property Council of Australia. He is an executive member of various Fund Boards and Partnership Investment Committees, and Chair of the Executive Property Valuation Committee and Executive Leadership Group. He is also a member of the Property Male Champions of Change. Mr. Harrison is Fellow of the Australian Property Institute (FAPI). He holds a Bachelor of Business Degree in Land Economy from the Western Sydney University and Graduate Diploma in Applied Finance from Securities Institute of Australia.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • David's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the Charter Hall Group management team in years:

2.5
Average Tenure
53
Average Age
  • The tenure for the Charter Hall Group management team is about average.
Management Team

David Harrison

TITLE
MD, Group CEO & Director
COMPENSATION
A$4M
AGE
53
TENURE
15 yrs

Russell Proutt

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
2.3 yrs

Sean Thomas McMahon

TITLE
Chief Investment Officer
COMPENSATION
A$2M
TENURE
3.3 yrs

David Southon

TITLE
COMPENSATION
A$197K
AGE
53

Sheridan Ware

TITLE
Chief Information & Technology Officer
TENURE
0.3 yrs

Philip Cheetham

TITLE
Head of Listed Investor Relations
TENURE
3.8 yrs

Mark Bryant

TITLE
Group General Counsel & Company Secretary

Richard Stacker

TITLE
Industrial CEO
COMPENSATION
A$989K
TENURE
1.3 yrs

Adrian Tasman Taylor

TITLE
Office Chief Executive Officer
COMPENSATION
A$1M
AGE
47
TENURE
2.8 yrs

Natalie Devlin

TITLE
Chief Experience Officer
COMPENSATION
A$539K
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Charter Hall Group board of directors in years:

4.9
Average Tenure
60
Average Age
  • The tenure for the Charter Hall Group board of directors is about average.
Board of Directors

David Clarke

TITLE
Independent Chairman of the Board
COMPENSATION
A$384K
AGE
63
TENURE
4.9 yrs

David Harrison

TITLE
MD, Group CEO & Director
COMPENSATION
A$4M
AGE
53
TENURE
13.2 yrs

Anne Brennan

TITLE
Non-Executive Independent Director
COMPENSATION
A$205K
AGE
59
TENURE
9 yrs

Phil Garling

TITLE
Non-Executive Independent Director
COMPENSATION
A$188K
AGE
65
TENURE
6.7 yrs

Karen Moses

TITLE
Non-Executive Independent Director
COMPENSATION
A$195K
AGE
61
TENURE
3.1 yrs

David Ross

TITLE
Non-Executive Independent Director
COMPENSATION
A$182K
AGE
58
TENURE
2.8 yrs

Greg Paramor

TITLE
Independent Non Executive Director
COMPENSATION
A$116K
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Charter Hall Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
30. Sep 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 10. Sep 19 23. Sep 19 -2,550,562 A$11.45 A$-29,210,128
30. Sep 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 10. Sep 19 23. Sep 19 2,636,051 A$11.34 A$29,893,489
12. Sep 19 Buy Gregory Paramor Individual 11. Sep 19 11. Sep 19 14,300 A$11.12 A$159,042
12. Sep 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 21. Aug 19 09. Sep 19 3,113,195 A$12.40 A$38,618,136
21. Aug 19 Sell Colonial First State Asset Management (Australia) Limited Company 08. Aug 19 21. Aug 19 -142,147 A$11.99 A$-1,704,442
21. Aug 19 Buy Colonial First State Asset Management (Australia) Limited Company 05. Aug 19 20. Aug 19 419,208 A$11.40 A$4,777,104
08. Aug 19 Buy Colonial First State Asset Management (Australia) Limited Company 09. Jul 19 08. Aug 19 1,599,248 A$11.53 A$18,441,297
26. Aug 19 Buy David Ross Individual 22. Aug 19 22. Aug 19 10,000 A$12.50 A$125,000
21. Aug 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 05. Aug 19 21. Aug 19 -2,188,758 A$11.72 A$-25,647,200
21. Aug 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 05. Aug 19 20. Aug 19 1,330,431 A$11.65 A$15,494,281
18. Jul 19 Sell Ipac Asset Management Limited Company 04. Sep 18 17. Jul 19 -170,884 A$9.03 A$-1,543,392
18. Jul 19 Buy Ipac Asset Management Limited Company 25. Oct 18 29. Mar 19 160,984 A$8.40 A$1,352,909
18. Jul 19 Sell National Mutual Funds Management Limited Company 31. Oct 18 06. Mar 19 -406,418 A$8.51 A$-3,457,231
18. Jul 19 Buy National Mutual Funds Management Limited Company 14. Sep 18 03. Jun 19 463,845 A$8.30 A$3,847,728
18. Jul 19 Sell AMP Capital Investors Limited Company 09. Aug 18 17. Jul 19 -7,943,646 A$9.08 A$-71,187,795
18. Jul 19 Buy AMP Capital Investors Limited Company 09. Aug 18 04. Jul 19 7,701,141 A$8.86 A$57,761,192
09. Jul 19 Sell Realindex Investments Pty Limited Company 14. May 19 03. Jul 19 -173,422 A$10.51 A$-1,821,955
09. Jul 19 Buy Realindex Investments Pty Limited Company 10. May 19 05. Jul 19 70,736 A$10.85 A$767,230
09. Jul 19 Buy ASB Group Investments Ltd. Company 06. May 19 20. Jun 19 60,487 A$11.01 A$665,949
09. Jul 19 Sell Colonial First State Asset Management (Australia) Limited Company 10. May 19 28. Jun 19 -806,442 A$10.58 A$-8,494,032
09. Jul 19 Buy Colonial First State Asset Management (Australia) Limited Company 06. May 19 08. Jul 19 5,744,363 A$10.85 A$61,617,159
21. Jun 19 Sell Cohen & Steers Capital Management, Inc. Company 17. Jun 19 19. Jun 19 -303,189 A$11.31 A$-3,382,597
18. Jun 19 Buy Cohen & Steers Capital Management, Inc. Company 14. Jun 19 14. Jun 19 136,163 A$11.53 A$1,569,551
12. Jun 19 Sell Cohen & Steers Capital Management, Inc. Company 08. May 19 08. May 19 -7,079 A$9.96 A$-70,481
12. Jun 19 Buy Cohen & Steers Capital Management, Inc. Company 23. Apr 19 07. Jun 19 225,262 A$10.23 A$2,256,378
06. May 19 Buy Realindex Investments Pty Limited Company 27. Feb 19 03. May 19 117,176 A$9.37 A$1,097,575
06. May 19 Buy Colonial First State Asset Management (Australia) Limited Company 06. Mar 19 03. May 19 3,315,489 A$10.21 A$32,632,705
02. May 19 Sell Vinva Investment Management Company 06. Apr 19 30. Apr 19 -312,512 A$9.83 A$-3,071,336
02. May 19 Buy Vinva Investment Management Company 06. Apr 19 30. Apr 19 43,192 A$10.06 A$434,299
22. Apr 19 Sell The Vanguard Group, Inc. Company 27. Feb 18 15. Apr 19 -2,385,079 A$10.15 A$-24,189,426
22. Apr 19 Buy The Vanguard Group, Inc. Company 27. Feb 18 16. Apr 19 7,072,937 A$10.27 A$72,339,882
15. Apr 19 Sell David Harrison Individual 10. Apr 19 10. Apr 19 -600,000 A$9.99 A$-5,995,199
11. Apr 19 Sell Cohen & Steers Capital Management, Inc. Company 12. Dec 18 09. Apr 19 -5,664,075 A$9.03 A$-48,366,530
11. Apr 19 Buy Cohen & Steers Capital Management, Inc. Company 13. Dec 18 03. Apr 19 1,001,967 A$8.39 A$8,401,985
09. Apr 19 Sell FIL Limited Company 24. Jun 16 05. Apr 19 -17,734,075 A$9.87 A$0
09. Apr 19 Buy FIL Limited Company 28. Jun 16 05. Apr 19 18,892,489 A$10.36 A$0
09. Apr 19 Sell Vinva Investment Management Company 05. Dec 18 05. Apr 19 -138,353 A$9.55 A$-1,321,392
09. Apr 19 Buy Vinva Investment Management Company 05. Dec 18 05. Apr 19 17,328,212 A$8.83 A$152,998,994
28. Feb 19 Sell ASB Group Investments Ltd. Company 31. Jan 19 31. Jan 19 -17,759 A$8.12 A$-144,203
28. Feb 19 Buy ASB Group Investments Ltd. Company 12. Dec 18 04. Feb 19 130,744 A$7.74 A$1,012,139
28. Feb 19 Sell Colonial First State Asset Management (Australia) Limited Company 11. Dec 18 26. Feb 19 -2,336,683 A$8.61 A$-19,033,366
28. Feb 19 Buy Colonial First State Asset Management (Australia) Limited Company 13. Dec 18 25. Jan 19 1,017,691 A$7.62 A$7,750,068
12. Dec 18 Buy Realindex Investments Pty Limited Company 06. Dec 18 07. Dec 18 44,986 A$7.35 A$329,116
12. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 06. Dec 18 07. Dec 18 258,042 A$7.29 A$1,875,820
06. Dec 18 Sell Realindex Investments Pty Limited Company 30. Nov 18 04. Dec 18 -10,334 A$6.95 A$-71,790
06. Dec 18 Buy Realindex Investments Pty Limited Company 26. Nov 18 05. Dec 18 23,856 A$7.02 A$167,551
06. Dec 18 Sell Colonial First State Asset Management (Australia) Limited Company 23. Nov 18 05. Dec 18 -588,257 A$7.01 A$-4,122,635
26. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 22. Nov 18 22. Nov 18 18,258 A$7.00 A$127,806
30. Oct 18 Buy Pinnacle Investment Management Group Limited Company 26. Sep 18 26. Oct 18 559,766 A$7.05 A$3,946,825
23. Nov 18 Sell Realindex Investments Pty Limited Company 22. Sep 17 20. Nov 18 -3,280,205 A$6.50 A$-21,335,452
23. Nov 18 Buy Realindex Investments Pty Limited Company 26. Sep 17 19. Nov 18 1,960,689 A$6.34 A$12,434,758
23. Nov 18 Sell Colonial First State Asset Management (Australia) Limited Company 22. Sep 17 19. Nov 18 -11,358,438 A$6.31 A$-69,105,165
23. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 22. Sep 17 14. Nov 18 9,509,357 A$6.88 A$58,687,156
19. Nov 18 Sell Pinnacle Investment Management Group Limited Company 14. Nov 18 14. Nov 18 -100,000 A$7.00 A$-699,710
14. Nov 18 Buy Pinnacle Investment Management Group Limited Company 08. Nov 18 12. Nov 18 153,068 A$7.13 A$1,091,045
08. Nov 18 Sell Pinnacle Investment Management Group Limited Company 05. Nov 18 05. Nov 18 -94,193 A$6.66 A$-627,325
07. Nov 18 Sell Pinnacle Investment Management Group Limited Company 31. Oct 18 31. Oct 18 -19,784 A$6.90 A$-136,510
07. Nov 18 Buy Pinnacle Investment Management Group Limited Company 31. Oct 18 02. Nov 18 123,668 A$6.80 A$839,673
X
Management checks
We assess Charter Hall Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Charter Hall Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CHC News

Simply Wall St News

How Should Investors React To Charter Hall Group's (ASX:CHC) CEO Pay?

See our latest analysis for Charter Hall Group How Does David Harrison's Compensation Compare With Similar Sized Companies? … According to our data, Charter Hall Group has a market capitalization of AU$5.6b, and pays its CEO total annual compensation worth AU$3.7m. … So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies.

Simply Wall St -

Is Charter Hall Group (ASX:CHC) A High Quality Stock To Own?

See our latest analysis for Charter Hall Group How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Charter Hall Group: 14% = AU$264m ÷ AU$1.9b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Charter Hall Group's Debt And Its 14% Return On Equity While Charter Hall Group does have some debt, with debt to equity of just 0.15, we wouldn't say debt is excessive.

Simply Wall St -

Who Has Been Selling Charter Hall Group (ASX:CHC) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Charter Hall Group (ASX:CHC). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Charter Hall Group Charter Hall Group Insider Transactions Over The Last Year The MD, Group CEO &amp; Director, David Harrison, made the biggest insider sale in the last 12 months. … ASX:CHC Recent Insider Trading, July 18th 2019 Does Charter Hall Group Boast High Insider Ownership?

Simply Wall St -

Only 2 Days Left To Cash In On Charter Hall Group (ASX:CHC) Dividend

Charter Hall Group's next dividend payment will be AU$0.17 per share, on the back of last year when the company paid a total of AU$0.33 to shareholders. … Check out our latest analysis for Charter Hall Group Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … That's why we're glad to see Charter Hall Group's earnings per share growing, although as we saw, the company is paying out more than half of its earnings and cashflow - 79% and 81% respectively.

Simply Wall St -

Is Charter Hall Group's (ASX:CHC) 149% Share Price Increase Well Justified?

See our latest analysis for Charter Hall Group While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … Over half a decade, Charter Hall Group managed to grow its earnings per share at 26% a year. … A Different Perspective It's nice to see that Charter Hall Group shareholders have received a total shareholder return of 82% over the last year.

Simply Wall St -

How Should You Analyze REIT Stock Charter Hall Group (ASX:CHC)?

This tells us how long it will take CHC to pay off its debt using its income from its main business activities, and gives us an insight into CHC’s ability to service its borrowings. … Take a look at our free research report of analyst consensus for CHC’s outlook. … The intrinsic value infographic in our free research report helps visualize whether CHC is currently mispriced by the market.

Simply Wall St -

Could The Charter Hall Group (ASX:CHC) Ownership Structure Tell Us Something Useful?

See our latest analysis for Charter Hall Group ASX:CHC Ownership Summary, May 21st 2019 What Does The Institutional Ownership Tell Us About Charter Hall Group? … We can see that Charter Hall Group does have institutional investors; and they hold 66% of the stock. … Insider Ownership Of Charter Hall Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Does Charter Hall Group (ASX:CHC) Have A Place In Your Dividend Portfolio?

Dividend paying stocks like Charter Hall Group (ASX:CHC) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Charter Hall Group has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Charter Hall Group's is paying out more than half its income as dividends, but at least the dividend is covered both by reported earnings and cashflow.

Simply Wall St -

A Holistic Look At Charter Hall Group (ASX:CHC)

Charter Hall Group (ASX:CHC) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Boasting A 14% Return On Equity, Is Charter Hall Group (ASX:CHC) A Top Quality Stock?

Charter Hall Group has a ROE of 14%, based on the last twelve months. … Check out our latest analysis for Charter Hall Group? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

CHC Company Info

Description

With over 28 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors – office, retail, industrial and social infrastructure. Operating with prudence, we’ve carefully curated a $34.6 billion diverse portfolio of over 840 high quality, long leased properties. Partnership and financial discipline are at the heart of our approach. Acting in the best interest of customers and communities, we combine insight and inventiveness to unlock hidden value. Taking a long term view, our $6.5 billion development pipeline delivers sustainable, technologically enabled projects for our customers. The impacts of what we do are far-reaching. From helping businesses succeed by supporting their evolving workplace needs, to providing investors with superior returns for a better retirement, we’re powered by the drive to go further.

Details
Name: Charter Hall Group
CHC
Exchange: ASX
Founded: 1991
A$5,351,779,235
465,777,131
Website: http://www.charterhall.com.au
Address: Charter Hall Group
No. 1 Martin Place,
Level 20,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CHC Stapled Securities Australian Securities Exchange AU AUD 16. Jun 2006
OTCPK CTOU.F Stapled Securities Pink Sheets LLC US USD 16. Jun 2006
CHIA CHC Stapled Securities Chi-X Australia AU AUD 16. Jun 2006
Number of employees
Current staff
Staff numbers
0
Charter Hall Group employees.
Industry
Diversified REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:35
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/09/15
Last earnings filing: 2019/08/19
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.