Charter Hall Group - Upgraded FY22 earnings guidance and FUM growth update

Charter Hall Group (ASX:CHC) provides updated earnings guidance today.

In accordance with the Group’s 6-monthly valuation process, almost 100% of all Group platform properties have been independently valued, proving a net valuation uplift of circa $3.5 billion as at 31 December, 2021 subject to audit and relevant fund Board approvals of financial statements. It is also noted that the Charter Hall managed consortium comprising CLW and Hostplus now have unconditional ALE securityholder and Court approval to complete the Scheme of Arrangement on 17 December, 2021.

As a result of valuations and unconditional transaction activity to date, Group FUM is now expected to be $61.3bn as at 31 December, 2021.

As these valuation uplifts increase FUM and likely performance fees payable at testing dates during the fiscal year, the Group upgrades FY22 operating earnings per security guidance to no less than 105 cents per security.

Group Managing Director and CEO David Harrison commented

“it is pleasing to see the hard work we have put into curating and growing high quality portfolios for our fund investors over many years has delivered excellent financial returns, well above expectations and performance fee hurdles. The resultant performance fees, whilst positive for the Group, also highlights the outperformance delivered for investors given fund investors typically receive 80% of excess total returns above the hurdles established at inception of the funds and partnerships.”

FY22 distribution per security guidance remains unchanged and is for 6% growth over FY21 distributions per security.

Announcement Authorised by the Board

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