Charter Hall share price storms 6% higher on record FY22 result

Charter Hall had a strong 12 months in FY 2022…

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Key points

  • Charter Hall has released its full year results
  • The property company delivered stellar earnings growth in FY 2022
  • This was driven largely by its fund management business which had an incredible year

The Charter Hall Group (ASX: CHC) share price was a strong performer on Thursday.

The property company's shares have just closed the session up over 6% to $13.36 following the release of its full year results.

Charter Hall share price higher on strong FY 2022 results

  • Record operating earnings of $542.8 million
  • Operating earnings per share (OEPS) up 89.5% to 115.6 cents per share
  • Statutory profit after tax of $911.1 million
  • Distributions up 4.1% to 40.1 cents per share
  • Outlook: Distribution guidance of 6% growth in FY 2023

What happened in FY 2022?

For the 12 months ended 30 June, Charter Hall reported record operating earnings of $542.8 million. This was an increase of 90.2% over the prior corresponding period.

While this strong profit was driven by growth across the business, the key driver was its fund management operations.

Fund management EBITDA grew a whopping 170.1% to $552.2 million in FY 2022 thanks to a 456.9% in transaction and performance revenue. This reflects fund outperformance and transaction activity.

Management commentary

Charter Hall's managing director and CEO, David Harrison, was pleased with the record result. He said:

FY22 delivered a record year of earnings for Charter Hall and earnings growth. The business continues to execute on its strategy of partnering with tenants and investors to drive mutually beneficial outcomes. Our strong investor and tenant customer feedback evidences the customer centric approach to partnering we continue to prosecute.

Further, our ability to execute complex privatisations provides additional deployment opportunities that are not readily replicated. Our development pipeline has grown to $16 billion, with strong growth in pre-leased projects continuing to provide develop to core enhanced returns for our investors. Our focus on partnering, execution, deployment and co-investment alongside fund investors drives growth for securityholders.


Also potentially boosting the Charter Hall share price today was the company's outlook.

While the company is guiding to a softer OEPS result, it still expects one that is materially higher than what was recorded in FY 2021.

Based on no material adverse change in current market conditions, Charter Hall's FY 2023 earnings guidance is for post-tax OEPS of no less than 90 cent per share.

This is expected to underpin distribution per share growth of 6% over FY 2022.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.

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