Why the Charter Hall (ASX:CHC) share price is moving higher

With interest rates still in the cellar, the Australian property market is running hot.
The post Why the Charter Hall (ASX:CHC) share price is moving higher appeared first on The Motley Fool Australia. –

The Charter Hall Group (ASX: CHC) share price is moving higher in morning trade, up 2%.

Below we take a look at the latest funds under management (FUM) update from the integrated property group.

What funds update did the Group provide?

Charter Hall’s share price is rising after the company reported a strong increase in FUM.

According to the release, Charter Hall’s FUM Platform will generate gross valuation increases of $3.3 billion. That figure includes $600 million of development capital expenditures.

Charter Hall now forecasts its Group FUM will increase to roughly $52 billion by 30 June. That represents 28% growth in FUM in the 2021 financial year, an increase of $12 billion.

Commenting on the FUM update, Charter Hall’s CEO David Harrison said:

Today’s valuation outcomes demonstrate the success of our investment selection process. We’ve seen impressive valuation gains across most sectors, delivering strong returns for our investors. Our focus on securing long-leased assets to high-quality tenants, often secured through off-market sale-and-leaseback transactions, or through our develop-to-core development pipeline, continues to deliver attractive enhanced returns.

Harrison said the company had secured $6.0 billion in net acquisitions in the 2021 financial year, with $7.8 billion of new acquisitions and $1.8 billion worth of assets sold.

Charter Hall’s net valuation in FY21 increased by $3.7 billion, in addition to $1.8 billion of capital expenditures during the period.

Breaking the valuation growth over the past 12 months down by sector, its industrial assets increased by 15.5%, office assets increased by 3.7%, long weighted average lease expiry (WALE) retail increased by 14.5%, social infrastructure increased by 9.9%, and shopping centre retail increased by 1.3%.

Charter Hall share price snapshot

Charter Hall shares gained 59% over the past 12 months. That’s more than double the 26% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

Year-to-date the Charter Hall share price is up 3%.

Charter Hall pays a 2.3% dividend yield, 40% franked.

The post Why the Charter Hall (ASX:CHC) share price is moving higher appeared first on The Motley Fool Australia.

Should you invest $1,000 in Charter Hall right now?

Before you consider Charter Hall, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Charter Hall wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 up 0.3%: CSL downgraded, Zip drops, Charter Hall impresses

Why Charter Hall, Collins Foods, Endeavour Group, & Telix are pushing higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!