Highlights

• Operating Earnings rose 26.8% to $488.1 million (103.2 cents per security), with statutory earnings of $427.9 million.

• Record gross Equity inflows of $6.7 billion for the Property Funds Management business, and $17.1 billion in gross property transactions.

• Group funds under management grew $10.0 billion to $94.3 billion, including $76.0 billion of Property FUM.

• FY27 guidance of 114.0 cents per security post-tax operating earnings (10.5% growth) and 6% distribution growth to approximately 53.7 cps.

Charter Hall Group (ASX:CHC) is Australia's leading fully integrated diversified property Investment and funds management group. The Group accesses, deploys, manages, and invests equity across high-quality properties in core sectors — Office, Industrial & Logistics, Retail, and Social Infrastructure — with $94.3 billion in Group funds under management. Charter Hall's integrated platform, deep tenant relationships, long-standing global investor base, and disciplined Balance Sheet position it as the pre-eminent domestic property funds manager. The Group's PI (Property Investment) portfolio of $3.2 billion represents its co-investment alongside the broader $76.0 billion property platform.

Recent Development

Released on 21 August 2026, Charter Hall reported FY26 operating earnings of $488.1 million (103.2 cents per security), up 26.8% on FY25, and statutory earnings of $427.9 million. Distribution per security was 50.7 cents, up 6.0%. The FY26 result was characterised by record gross equity inflows of $6.7 billion, gross property transactions of $17.1 billion, and multiple new fund and Partnership launches.

Group FUM grew $10.0 billion to $94.3 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, partly offset by $5.8 billion of divestments. Property Investment EBITDA grew 17.0%, supported by $450 million deployed into PI during FY26. The committed and uncommitted development pipeline expanded to $20.4 billion. Portfolio occupancy was 97.8% with a WALE of 8.7 years. Balance sheet gearing was 14.2%, with $1.0 billion of investment capacity. FY27 OEPS guidance of approximately 114.0 cents (10.5% growth) was provided.

Sector Context

Charter Hall operates in a structurally growing funds management sector, with institutions, wholesale investors, and SMSF participants all increasingly allocating to real assets. The Group's access to multiple Capital sources — institutional wholesale pooled funds ($2.5 billion raised in FY26), institutional partnerships and mandates ($3.8 billion), and direct funds ($352 million) — gives it a diversified and resilient fundraising capability. The 26.8% operating earnings growth reflects both strong fee income from a growing FUM base and higher Property Investment EBITDA as co-investment exposure to the $76 billion platform compounds.

Risks and Uncertainties

Charter Hall's earnings are sensitive to property transaction volumes and asset valuations, both of which are influenced by Interest Rate settings and economic conditions. The FY27 guidance explicitly assumes no performance fee revenue, having benefited from performance fees in FY26 — this is a material differentiator to note when assessing the 10.5% guidance growth rate. The expanded development pipeline of $20.4 billion carries both timing and leasing execution risk. At Moody's Baa1 (Stable), Charter Hall's investment-grade balance sheet is well-rated but gearing at 14.2% leaves limited room for large balance sheet transactions without additional capital.

Catalysts to Watch

Continued growth in FUM toward $100 billion and beyond is the primary long-term structural catalyst. Delivery of the $20.4 billion development pipeline — particularly the $7.1 billion Industrial & Logistics pipeline and $7.8 billion uncommitted Office pipeline following 1 O'Connell Street Acquisition — will drive future earnings. Progress toward the Net Zero Scope 1 and 2 target achieved from July 2025 supports ESG credentials important for institutional capital allocation. Any new large partnership formations or mandates from global institutional investors would accelerate FUM and fee income growth.

Final Thoughts

Charter Hall Group (ASX:CHC) delivered an industry-leading FY26 result, demonstrating the compounding power of its integrated access-deploy-manage-invest model. With $94.3 billion in FUM, record equity inflows, a growing development pipeline, and FY27 guidance targeting 10.5% earnings growth, the Group remains the benchmark against which Australian property funds managers are measured.