Charter Hall Group (ASX: CHC) shares are catching the eye on Monday.
In morning trade, the ASX 200 share is up over 5% to $20.37.
Image source: Getty Images
Why is this ASX 200 share roaring higher?
Investors have been scrambling to buy the integrated diversified property investment and funds management company's shares following the release of a guidance update.
According to the release, the company has experienced continued momentum across its Property Funds Management (PFM) platform since its last update.
As a result, it has increased its guidance for FY 2026 operating earnings per share by a further 3% from $1.00 to $1.03. This assumes no material adverse change in market conditions.
Impressively, this represents a 26.5% increase on FY 2025's operating earnings per share of 81.4 cents.
What is driving this growth?
The ASX 200 share revealed that its institutional PFM platform continues to grow, underpinned by increased allocations from existing clients and new investor gross equity inflows across institutional pooled funds, partnerships, and mandates.
It notes that financial year-to-date gross equity inflows total $6.5 billion, which represents an increase of $1.7 billion since the first half.
This growth has been driven by investor customers increasing allocations within existing investments, as well as diversification into additional Charter Hall managed strategies and sectors.
Recent client activity has resulted in the addition of 25 new institutional investors to the platform over the last 18 months. This includes several institutions making initial allocations to the Australian property sector, which it believes supports long term growth potential.
In addition, following recent investment activity, PFM has increased to $74.7 billion. This is up from $71.7 billion at the end of December.
Management notes that this is supporting further growth in recurring base funds management and property services earnings.
It also advised that capital deployment remains disciplined, targeting high quality assets with long WALEs, strong tenant covenants, and attractive risk adjusted returns.
Commenting on the company's performance, the ASX 200 share's managing director and CEO, David Harrison, said:
Australia continues to attract institutional capital as a stable and highly dependable real asset market. We are seeing increased allocations from existing institutional investors alongside new domestic and offshore inflows seeking diversified exposures.
The resilience of unlisted property returns, and inflation hedge characteristics continue to support strong investor demand, with Australia remaining a preferred destination for global capital. Our platform scale, disciplined capital deployment and co-investment alignment continues to drive equity flows and sustained earnings growth.
