Key Highlights

  • Operating Earnings rose 26.8% to A$488.1 million for the year to 30 June 2026.
  • Post-tax operating earnings per security were 103.2 cents, compared with 81.4 cents a year earlier.
  • The distribution was 50.7 cents per security, up 6.0%.
  • FY27 guidance of about 114.0 cents per security, around 10.5% growth, assumes no performance fee revenue.

How much of Charter Hall Group (ASX:CHC)'s earnings depends on one-off performance fees, and what does its FY27 guidance assume? That framing is a useful marker for investors trying to separate recurring fee income from the lumpier items that have inflated or depressed past results.

The FY26 result

Statutory profit attributable to securityholders was A$427.9 million, up from A$327.7 million, equal to 88.8 cents per security versus 68.0 cents. The distribution was 50.7 cents per security, up 6.0%.

How Charter Hall makes money

Charter Hall is primarily a funds manager. It creates and manages property funds for institutional and retail investors across office, industrial and logistics, retail, social infrastructure and long-lease assets. It earns base fees on Assets under management, transaction and leasing fees, and performance fees when funds exceed return hurdles. It also holds co-investments in many of those funds and a development pipeline.

At 30 June 2026, group funds under management (FUM) were A$94.3 billion, up from A$84.3 billion, of which property FUM was A$76.0 billion, up 13.8%. Gross Equity inflows were A$6.7 billion, which the company described as a record for its property funds management business. Gross property transactions were A$17.1 billion, and A$22.6 billion of new and refinanced Debt was arranged across 66 funds.

The Property Investment portfolio, the co-investment book, was valued at A$3.2 billion, with occupancy of 97.8%, a weighted average Lease expiry (WALE) of 8.7 years and average rent reviews of 3.5%. Government tenants made up 26% of the managed portfolio, and the largest single asset was no more than 6% of it. Development completions were A$1.4 billion and the development pipeline A$20.4 billion.

Balance sheet

Charter Hall's Balance Sheet gearing was 14.2% and it reported A$1.0 billion of investment capacity. These are company-reported figures as at 30 June 2026. Low gearing at group level matters because the company wants to retain capacity to co-invest alongside its funds when opportunities arise, such as when property values reset.

FY27 guidance

Management guided to post-tax OEPS of about 114.0 cents, approximately 10.5% growth, and distribution per security growth of about 6% on FY26. The guidance excludes performance fees, which means any such fees would be additional. Guidance is a forecast and depends on market conditions, transaction volumes and the group's ability to keep raising equity.

Guiding to roughly 10.5% growth without performance fees suggests a more normalised outlook.

Sector and competitive position

The listed property funds management field includes Goodman Group in logistics and data centres, Dexus, Stockland and Lendlease in diversified property, and private players such as Blackstone, Brookfield and Dexus's unlisted platforms. Charter Hall's competitive strengths include scale in Australian long-lease and government-tenanted property, a broad investor base spanning institutions and retail, and a track record of raising Capital from both. Its exposure to office, retail and industrial assets means asset values and transaction volumes influence its income.

A key sector Factor is interest rates. Falling rates tend to have the opposite effect.

Risks to monitor

Property values and interest rates.

Capital raising. Record inflows in FY26 may not repeat if investor sentiment changes.

Performance fee volatility. The result relied on encouraging earnings growth, but fees depend on fund returns and timing.

Sector exposure. Office and retail assets face structural questions around demand.

Development risk. A A$20.4 billion pipeline brings cost, leasing and timing risks.

Fund-structure conflicts. As manager and co-investor, the group must balance its own interests with those of fund investors, which regulators and investors scrutinise.

What to watch

Charter Hall typically updates the market at its Annual General Meeting and in its half-year results, expected in February 2027. Watch fund-level capital flows, transaction volumes, any change to the guidance, and progress on the development pipeline.