Highlights

  • FY26 operating Earnings reached A$488.1 million, with operating earnings per security of 103.2 cents.
  • Group funds under management increased to A$94.3 billion, supported by record gross Equity inflows of A$6.7 billion.
  • The group reported A$17.1 billion of gross property transactions and maintained low balance-sheet gearing of 14.2%.
  • FY27 guidance targets post-tax operating earnings per security of about 114.0 cents and 6% distribution growth.

Charter Hall Group (ASX:CHC) is an Australian property funds manager and investor that manages listed and unlisted property vehicles, develops Assets and co-invests alongside Capital partners. Its FY26 result showed higher operating earnings, record equity inflows and increased funds under management, while the FY27 outlook places continued emphasis on fund flows, transactions and disciplined capital deployment.

FY26 Operating Earnings and Fund Growth

For FY26, Charter Hall reported operating earnings of A$488.1 million and post-tax operating earnings per security of 103.2 cents. The distribution was 50.7 cents per security. Statutory post-tax earnings were A$427.9 million. Operating earnings is the group’s preferred measure and excludes items such as unrealised property revaluations and derivative movements, so the difference between the two measures remains relevant when reviewing performance.

Group funds under management increased to A$94.3 billion, including A$76.0 billion of property funds under management. Gross equity inflows reached A$6.7 billion and gross property transactions totalled A$17.1 billion, expanding the base for recurring management fee income.

How the Earnings Mix Is Developing

The group earns through funds management fees, property Investment returns, development activity and performance-related income. FY26 segment EBITDA included A$341.6 million from Property Investment, A$293.1 million from Funds Management and A$61.5 million from Development Investment. Performance fees are more variable than recurring management income.

Charter Hall’s investment portfolio was valued at A$3.2 billion, with occupancy of 97.8% and a weighted average Lease expiry of 8.7 years. The development pipeline was A$20.4 billion, including committed and uncommitted projects, providing future transaction and development opportunities.

Balance Sheet and FY27 Guidance

Balance-sheet gearing was 14.2%, and Charter Hall reported A$1.0 billion of investment capacity. Across the platform, A$22.6 billion of new and refinanced Debt was completed during FY26, highlighting the importance of continued access to debt and equity capital.

For FY27, Charter Hall guided to post-tax operating earnings per security of about 114.0 cents, representing 10.5% growth from FY26, together with 6% distribution growth. The guidance assumes no performance fees, meaning the stated outlook is based on recurring and transactional earnings rather than a contribution from this more variable income stream.

Key Risks and Execution Priorities

The main sensitivities are investor appetite for property funds, transaction activity, funding costs, property valuations and development execution. Lower capital inflows could slow funds under management growth, while weaker valuations may affect co-investment returns and transaction volumes.

Execution in FY27 will centre on equity inflows, transactions, development activity and portfolio occupancy. With guidance excluding performance fees, recurring management income and capital deployment will be central to the targeted increase in operating earnings per security.

Key Insights

Charter Hall enters FY27 with a larger funds-management platform, high portfolio occupancy and low balance-sheet gearing. FY26 equity inflows expanded the fee base, while FY27 guidance points to further earnings growth without assumed performance fees. Capital flows, transactions, funding conditions and development execution remain the main variables.