Strength across the platform delivers industry leading FY26 result
Charter Hall Group (ASX:CHC) (Charter Hall or the Group) today announces its full year results for the period ending 30 June 2026.
Financial Highlights:
- Operating earnings of $488.1 million, reflecting operating earnings per security (OEPS) post-tax for the year of 103.2 cents per security, up 26.8%
- Statutory earnings post-tax of $427.9 million
- Distribution per security of 50.7 cents, up 6.0%
Operating Highlights:
- Access: $6.7 billion of gross equity inflows
- Deploy: $17.1 billion1 of gross property transactions
- Manage: $94.3 billion2 of Group funds under management (FUM), including $76.0 billion of Property FUM
- Invest: Property Investment portfolio of $3.2 billion
Charter Hall Managing Director & Group CEO, David Harrison, said, “FY26 was a strong year for the Group, with record gross equity inflows for the Property Funds Management business of $6.7 billion, gross property transactions of $17.1 billion and the launch of multiple new funds and partnerships.
“The Property Funds Management business is growing across all sectors and capital sources. Institutional and wholesale capital was the primary source of growth, supported by new institutional investors and existing investors increasing and diversifying their holdings. We also saw increased momentum in Charter Hall Direct, as SMSF and advised investors continued to seek tangible, income-focused property investment products.
“Our focus remains on matching high-quality real estate opportunities with tenant customer demand and the capital seeking long-term exposure to those assets and cashflows. With deep cross-sector tenant relationships across the nation, a broad and long-standing global investor customer base and a disciplined balance sheet, we are well positioned to continue originating and curating asset opportunities that support sustainable earnings and FUM growth.
“Australia remains a compelling destination for capital, supported by favourable long-term economic and demographic fundamentals. We remain focused on creating investment solutions that provide inflation resilience and attractive risk-adjusted returns, while working closely with our tenant customers to ensure our properties meet their evolving operational needs.”
Funds Management
Group FUM increased $10.0 billion to $94.3 billion, consisting of $76.0 billion of Property FUM, with listed equities FUM at Paradice Investment Management included within Group FUM.
Property FUM (PFM) increased by $9.2 billion, driven by acquisitions of $11.9 billion, capex and development investment of $1.0 billion and net property revaluation gains of $2.1 billion, alongside divestments of $5.8 billion.
The Group’s $6.7 billion of gross equity inflows during the year comprised $2.5 billion in Institutional Wholesale pooled funds, $3.8 billion in Institutional Wholesale partnerships and mandates and $352 million in Direct funds.
Property Investment
At the end of the period, Charter Hall’s Property Investment (PI) portfolio value was $3.2 billion, representing the Group’s co-investment alongside its $76.0 billion property platform.
PI EBITDA increased 17.0% over the year due to incremental investment into accretive opportunities, a full year contribution from FY25 investments and the active curation of circa $500 million of PI portfolio assets. The Group deployed $450 million into PI during FY26, following $196 million in FY25.
The earnings resilience and diversification of the PI portfolio remains a key strength, combined with a high-quality tenant covenant profile. No single asset represents more than 6% of portfolio investments. Government tenant covenants represent the largest cohort at approximately 26%, complemented by blue-chip tenants across the portfolio, providing sustained growth in net income.
NPI growth across the portfolio is predominantly generated from net leases, with a broad range of annual rent reviews including a mix of CPI-linked rent reviews, fixed annual rent escalations and market rent reviews, providing further opportunity for increases in net income.
Portfolio occupancy remains high at 97.8%, with a weighted average lease expiry (WALE) of 8.7 years, weighted average rent review (WARR) of 3.5% and portfolio cap rate of 5.6%.
Development Activity and Pipeline
Development activity continues to drive modern asset creation, providing property solutions for tenant customers, enhancing returns and attracting new capital to funds and partnerships. The Group’s develop-to-core approach supports portfolio quality, long-term income growth and future FUM growth.
Development completions totalled $1.4 billion over the 12 months to 30 June. Charter Hall’s committed and uncommitted development pipeline stands at $20.4 billion, providing significant future growth opportunities across sectors.
The $2.5 billion increase in the pipeline over the past six months reflects a $0.6 billion increase in Industrial & Logistics development opportunities across multiple sites to $7.1 billion and a $1.9 billion increase in the uncommitted Office pipeline to $7.8 billion, following the acquisition of 1 O’Connell Street, Sydney.
Sustainability
Charter Hall achieved Net Zero Scope 1 and Scope 2 for emissions within our operational control from 1 July 2025, five years ahead of its original target supported by renewable electricity from onsite solar
and contracted renewable energy. The Group expanded its installed solar capacity by 10.2MW to 96.2MW, supporting asset operations and providing tenant customers with clean, affordable energy.
Charter Hall continued to demonstrate sustainability leadership, with five managed portfolios ranked in GRESB’s global top 10 of 2,382 participating funds. Sixteen CHC funds rated 5-star top quintile.
Capital Management
During the year, the Group completed $22.6 billion of new and refinanced debt facilities across 66 funds in the platform totalling $35.3 billion, delivering an average all-in margin saving of 20 basis points on refinanced debt.
At 30 June 2026, the Group balance sheet retained $1.0 billion of investment capacity, with balance sheet gearing of 14.2%. During the period the Group balance sheet issued A$250 million medium term notes in the domestic debt capital markets for a 7 year term at a margin of 150bps, rated Baa1/ Stable by Moody’s.
Outlook
Based on no material change in current market conditions, FY27 guidance is for post-tax operating earnings per security of approximately 114.0 cents, representing 10.5% growth over FY26. Guidance assumes no performance fee revenue is generated in FY27.
FY27 distribution per security guidance is for 6% growth over FY26.
- Excludes Listed Equities acquisition of $0.2bn and divestment of $0.4bn.
- Includes Paradice Investment Management (PIM), with $18.3bn of FUM at 30 June 2026
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