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.
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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.
