Highlights

  • Charter Hall has been awarded a $1.2 billion diversified property mandate from an existing institutional investor.
  • Funds under management reached $92.2 billion, supported by $4.8 billion in equity inflows during 1H FY26.
  • The group reported operating earnings of $238.8 million for the half year, up 21.6% on the prior corresponding period.

Charter Hall Group (ASX:CHC) has announced a new $1.2 billion diversified direct property mandate from an existing institutional client, adding to its expanding funds under management. The appointment comes as the group reports increased capital inflows and transaction activity during FY26.

New Mandate Supports Growth

The newly secured mandate adds to Charter Hall’s growing funds management platform, although specific portfolio details remain undisclosed. The appointment reflects continued engagement from institutional investors and contributes to ongoing expansion in assets under management.

Management noted that the mandate aligns with the group’s capabilities across multiple real estate sectors in Australia, including office, industrial, retail, and social infrastructure.

Earnings and Funds Expansion

For the half year ended 31 December 2025, Charter Hall reported operating earnings of $238.8 million and statutory earnings of $272.8 million. Operating earnings per security rose to 50.5 cents, while distributions increased by 6% to 24.8 cents per security.

Funds under management climbed to $92.2 billion, including $73.6 billion in property-related assets. Growth was supported by acquisitions, revaluations, and continued investor inflows across wholesale funds, partnerships, and direct investments.

Transaction Activity and Capital Deployment

During the period, the group recorded $9.8 billion in transactions and $4.8 billion in equity inflows. Property acquisitions totalled $8.5 billion, partially offset by $3.2 billion in divestments.

The property investment portfolio stood at $2.8 billion, with a diversified tenant base and occupancy of 97.1%. Lease metrics included a weighted average lease expiry of 8.2 years and ongoing rent review mechanisms linked to inflation and fixed increases.

Development Pipeline and Capital Position

Charter Hall completed $0.8 billion in developments during the half, while maintaining a pipeline valued at $17.9 billion. The group also completed $10 billion in new and refinanced debt facilities, increasing liquidity and extending loan maturities.

Total available liquidity across the platform reached $7.8 billion, with an additional $1.0 billion held on the balance sheet. Gearing remained low at 7.7%.

Sustainability and Outlook

The group reported that its platform is operating at net zero emissions, supported by renewable energy initiatives and solar installations. Additional solar capacity is planned to further expand coverage.

Looking ahead, Charter Hall expects continued opportunities to deploy capital, supported by available investment capacity and ongoing demand for Australian commercial property. FY26 guidance indicates operating earnings of 100 cents per security, representing growth of 22.9%, along with a 6% increase in distributions.

The addition of a $1.2 billion mandate reinforces Charter Hall’s position in the property funds management sector. Combined with rising inflows, transaction activity, and an extensive development pipeline, the group continues to expand its platform and capital base during FY26.