Charter Hall (ASX:CHC) share price flat on upgraded earnings guidance

The Charter Hall Group (ASX: CHC) share price is flat today despite the company announcing an upgraded earnings guidance. Here's the details.

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The Charter Hall Group (ASX: CHC) share price remains flat today despite the company announcing an upgraded earnings guidance.

During late-afternoon trade, the property company's shares are unchanged from yesterday's closing price of $14.13.

A man holds his hands out and shrugs.

Image source: Getty Images

What did Charter Hall announce?

Investors are indecisive by the company's market update, leaving Charter Hall shares unmoved for the day.

According to its release, Charter Hall advised that it expects post-tax operating earnings security to increase more than 57 cents. This represents a 6% growth on distribution per security when compared against FY20.

The group noted that the upgraded guidance is provided that there is no material change in current trading conditions. Furthermore, the projected result assumes its operating environment is not heavily affected by COVID-19.

Charter Hall noted that the guidance does not take into account any accrual for performance fees that may be realised.

Previously, the group's FY21 guidance estimated post-tax operating earnings security to come at 55 cents per security.

Charter Hall managing director and group CEO, David Harrison touched on the company's progress, saying:

Our Direct business has continued to enjoy strong inflows reflecting the quality of these portfolios and the attractive returns they offer. This has resulted in capital deployment that exceeded our previous expectations.

Mr Harrison also commented on Charter Hall's outlook, adding:

As we look towards FY22, we have significant investment capacity across the platform, a strong pipeline of deployment opportunities both off-market and from our development book, as well as uncrystallised performance fees embedded in many of our funds.

About the Charter Hall share price

Over the past 12 months, the Charter Hall share price has gained above 80%, however, year-to-date performance is 4% down. The group's shares reached an all-time high of $15.29 in late December 2020 and could break that feat again.

On valuation grounds, Charter Hall presides a market capitalisation of around $6.5 billion, with 465.7 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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.

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