Australian Ethical (ASX:AEF) and Charter Hall Retail REIT (ASX:CQR) both gave their shareholders an early Christmas present in the form of upgraded earnings guidance.

Australian Ethical is one of the few pure play stocks offering exposure to ESG offering funds management services.

While it has been in this trade since 1986, it has seen substantial uptake in recent years as investors became more aware of ESG issues.

This morning, the company told shareholders it expects an underlying post-tax profit between $5 million and $5.5 million for the six months to December 31 – 8% higher than 2020.

It has also increased Funds Under Management, by another 9% to $6.64 billion.

“While the emergence of a new coronavirus strain shows COVID-19 remains an ongoing concern, discussions around mobilising private finance to tackle climate change were high on the agenda during COP26 and shifting capital flows is an essential part of the decarbonisation process,” said CEO John McMurdo.

“Australian Ethical will continue to invest in its high growth strategy given the positive momentum we are experiencing and the scale of the opportunity ahead.”

Although Australian Ethical shares declined slightly today. The stock is up 174% in the past year, and up 1,492% over the past five years.

Australian Ethical (ASX:AEF) share price chart


Charter Hall expects higher earnings for its Retail REIT

Charter Hall (ASX:CHC) also upgrade its guidance for its Retail REIT (ASX:CQR).

The Real Estate Investment Trust expects its earnings per unit to be at least 28.2 cents per share, which would be 3.3% higher than FY21.

Distributions meanwhile would be at least 24.3 cents per unit, which would be 3.8% higher.

Charter Hall credited this to the strong performance of its portfolio both organically and through acquisitions.

Today CQR announced it was buying a 49% interest in a portfolio of Ampols service stations Ampol (ASX:ALD) for $50.5 million.

After the deal, Ampol will be CQR’s eighth largest tenant “adding another major tenant to CQR’s tenant mix and further improving the resilience of portfolio income”.

“Today’s acquisition is consistent with our strategy of growing our exposure to market leading convenience retailers and further enhancing the resilience, growth and stability of CQR’s income,” said CEO Greg Chubb.

“The high underlying land value and predominantly metropolitan location of the portfolio also provides significant long-term capital value upside.”

CQR has gained 8% in the last year, while Charter Hall has gained nearly 35%.

Charter Hall Retail REIT (ASX:CQR) share price chart