Charter Hall Group announced a further upgrade to FY26 operating earnings per security (OEPS) guidance, lifting expectations from 100.0 cents to 103.0 cents per security. This incremental 3.0% upgrade builds on momentum across the group’s property funds management platform and points to earnings growth of 26.5% relative to FY25 OEPS of 81.4 cents, demonstrating sustained operational strength across its institutional investment business.
The upgrade reflects accelerating institutional capital flows through Charter Hall’s platform, with the group achieving $6.5 billion in gross equity inflows year-to-date. This represents a $1.7 billion increase since the first half of FY26, driven by both deeper allocations within existing client relationships and new capital entering the platform. Over the past 18 months, Charter Hall has added 25 new institutional investors, including several making initial allocations to Australian property for the first time, suggesting broadening institutional confidence in the sector and the group’s stewardship.
Assets under management in the property funds management division grew to $74.72 billion as at the announcement date, up from $71.7 billion at 31 December 2025. This expansion creates a larger base for recurring management fees and property services earnings, providing a structural tailwind to profitability. Recent deployment activity demonstrates disciplined capital allocation, with $1.2 billion in diversified core direct institutional mandates secured in the second half of FY26, following a $2.1 billion mandate in the first half. Together these mandates add $3.3 billion to FUM.
Beyond mandate flows, Charter Hall deployed capital into specific assets reflective of its stated strategy. The group acquired the O’Connell Precinct in Sydney’s CBD for $1.15 billion as a new institutional office partnership, providing optionality through a 130,000 sqm development right on a consolidated 6,750 sqm holding. The launch of IP6, a $600 million industrial partnership co-invested with a domestic institutional partner, further scales Charter Hall’s development pipeline in logistics. The activation of new social infrastructure mandates through CHIP1 broadens diversification across alternative property sectors.
For investors, the earnings upgrade validates Charter Hall’s position as a leading institutional property funds manager navigating a maturing Australian property market. The diversity of new mandates and investor types suggests the group is successfully differentiating across sectors and investment strategies. Monitoring points ahead include deployment pace across the expanded mandate base, management fee stability as AUM scales, and tenant covenant quality within the portfolio, particularly in office assets. The announcement is price sensitive and has been classified as material by the ASX.
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About Charter Hall Group (ASX: CHC)
Charter Hall Group is Australia’s leading fully integrated diversified property investment and funds management company operating as a Real Estate Investment Trust (REIT). The company accesses, deploys, and manages high-quality properties across four core sectors: Office, Industrial & Logistics, Retail, and Social Infrastructure. It provides property investment and funds management services to retail and institutional investors with a portfolio valued at over $70 billion.
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