Key Highlights

  • FY26 operating earnings per security were 103.2 cents, and FY27 guidance is approximately 114.0 cents, described as 10.5% growth.
  • Guidance assumes no material change in market conditions and no performance fee revenue.
  • Group funds under management reached $94.3 billion, up $10.0 billion, including $76.0 billion of property FUM.
  • The company’s own Property Investment portfolio was valued at $3.2 billion, with 97.8% occupancy and a WALE of 8.7 years.

Why is Charter Hall Group (ASX:CHC) guiding to higher operating earnings per security in FY27 while assuming no performance fees? Because the manager is leaning on recurring earnings from a larger funds platform. In its FY26 results on 21 August 2026, Charter Hall reported operating earnings per security (OEPS) of 103.2 cents and guided to approximately 114.0 cents for FY27, on the stated assumption of no material change in market conditions and no performance fee revenue.

What Charter Hall does

Charter Hall is a property funds manager and investor. It earns management fees on the assets it runs for institutional, wholesale and retail investors, and it earns property investment income from co-investing its own balance sheet in those funds. Performance fees can add to earnings when funds outperform, but they are irregular.

The group says it operates across Office, Industrial and Logistics, Retail and Social Infrastructure. Funds under management (FUM) are the key base for fee revenue, so changes in asset values, acquisitions and divestments flow through to earnings.

FY26 results (year to 30 June 2026)

All figures are in Australian dollars and come from the company's results announcement of 21 August 2026.

Operating earnings were $488.1 million. OEPS, on a post-tax basis, was 103.2 cents, up 26.8%. Statutory post-tax earnings were $427.9 million. The distribution was 50.7 cents per security, up 6.0%.

The announcement does not disclose a FY26 performance fee figure in the material we reviewed, so we cannot say how much of the earnings growth came from performance fees as opposed to recurring items. Property Investment EBITDA was reported up 17.0%.

Funds under management and capital flows

The results announcement organises its capital activity under the labels Access (raising equity), Deploy (buying and selling property) and Curate (managing its own portfolio). Those labels are the company's own framing of how funds grow, rather than an independent measure.

Group FUM reached $94.3 billion, up $10.0 billion, of which $76.0 billion was property FUM, up $9.2 billion. The company attributes the property increase to $11.9 billion of acquisitions, $1.0 billion of capital expenditure and development, and $2.1 billion of net revaluation gains, partly offset by $5.8 billion of divestments.

Gross equity inflows, which the company reports under Access, were $6.7 billion. That included $2.5 billion into institutional wholesale pooled funds, $3.8 billion into partnerships and mandates, and $352 million into direct funds. Gross property transactions were $17.1 billion.

Beyond equity, the company also arranged $22.6 billion of new and refinanced debt across 66 funds, with an average all-in margin saving of 20 basis points on refinancings. It issued A$250 million of seven-year medium-term notes at a margin of 150 basis points, rated Baa1 with a stable outlook by Moody's.

The balance sheet portfolio

Charter Hall's own Property Investment portfolio was valued at $3.2 billion. Reported occupancy was 97.8%, the weighted average lease expiry (WALE) 8.7 years, the weighted average rent review 3.5% and the portfolio capitalisation rate 5.6%. Government tenants made up about 26% of the portfolio, the largest cohort, and the largest single asset was no more than 6% of investments.

Group gearing was 14.2% and balance sheet investment capacity was $1.0 billion. Property Investment deployment was $450 million in FY26 against $196 million in FY25, and the company is curating about $500 million of portfolio assets.

Development completions were $1.4 billion in the 12 months to 30 June 2026. The pipeline stood at $20.4 billion, up $2.5 billion over six months, including $7.1 billion in industrial and logistics and $7.8 billion of uncommitted office following the acquisition of 1 O'Connell Street, Sydney.

FY27 guidance and our arithmetic

Guidance is separate from reported results. Charter Hall guides to OEPS of about 114.0 cents, described as 10.5% growth, and to distribution per security growth of 6% on FY26. Both assume no material change in market conditions and no performance fee revenue.

Our own calculation: 114.0 divided by 103.2 implies growth of about 10.5%, consistent with the company's figure. Applying 6% to 50.7 cents gives roughly 53.7 cents for the distribution, but the company has not stated a cents figure in the sources we reviewed, so treat this as illustrative only.

Excluding performance fees makes the guidance dependent on recurring fees and investment income, but we do not forecast whether any performance fees will be earned.

Risks and things to monitor

Fee income is tied to asset values and transaction activity. If property valuations fall or institutional capital slows, FUM growth and fees could be affected. The $2.1 billion of net revaluation gains in FY26 shows how valuations can lift FUM, and the reverse is also possible.

Balance sheet co-investment exposes earnings to the same rental and valuation risks as the funds. Concentration is notable: government tenants are 26% of the portfolio, and the uncommitted office development pipeline raises questions about timing and leasing.

Investors may wish to monitor equity inflows, refinancing activity across the managed funds, the pace of divestments, any disclosure of performance fees, and the half-year result for the six months to 31 December 2026.