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Cooped-up, fed-up workers will drive office revival, says Charter Hall

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Jefferies analyst Sholto Maconochie said: “A strong result and outlook with upside risk.” Mr Maconochie said he expected the group would exceed also its 2022 earnings guidance.

The flow of money into property looking for steady returns is boosting funds under management at the group by $11.7 billion over the financial year to $52.3 billion.

Mr Harrison said: “We have generated record fund inflows, gross transactions and funds under management growth.″⁣

Charter Hall powered out of last year’s COVID-19 downturn with a big boost to its funds and fee earnings, a performance it emulated this financial year, when funds under management fees rose 22.5 per cent to $188 million.

Property management fees were up 11 per cent, development fees rose 35 per cent and leasing fees lifted 18 per cent. Transaction and performance fees fell 67 per cent to $66.8 million, largely due to a one-off $98 million performance fee it booked the previous financial year.

Charter Hall will pay a final distribution of 19.3¢ at the end of the month, taking its total year distribution to 37.9¢.

It also upgraded its earnings guidance for next financial year, aiming for no less than 75¢ per security, a hike of 23 per cent, earning it another tick from financial markets.

Macquarie analyst Stuart McLean put an “outperform” on the group, saying its performance was “a beat to consensus”.

Mr Harrison said “people are realising that if they don’t get vaccinated, we’re going to have closed economies, which is not going to be prosperous for anyone”.

Until the economy reopened, property sectors such as retail and hospitality in city CBDs would struggle, he said. “But I think that will change as we move into the new calendar year.”

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