Charter Hall has delivered a significant lift in FY26 operating earnings per security, reaching 103.2 cents per share, representing 26.8% growth against the prior year. This substantial acceleration reflects broad operational momentum across the group’s diversified earnings streams. Operating earnings totalled $488 million for the 12 months to 30 June 2026, underpinned by strong funds management earnings and solid property investment performance across its portfolio.
The group’s funds management business continues to be the primary driver of earnings momentum. Gross funds under management reached $94.3 billion, up $10 billion from FY25, with property-focused funds growing to $76.0 billion. This expansion was supported by $6.7 billion in gross equity flows during the year, demonstrating sustained investor appetite for Charter Hall’s investment platforms across institutional and retail channels. The scale of these operations translates directly into recurring management revenue, which constitutes an increasing portion of the earnings base and provides more predictable earnings visibility going forward.
Distribution per security reached 50.7 cents in FY26, continuing a remarkable 15-year streak of annual distribution growth that has rewarded long-term investors. The 6.0% lift in distributions provides a compelling income story for unitholders, particularly in the current interest rate environment where yield-generating investments remain relatively scarce. With a distribution yield of 4.3% on a franked basis, Charter Hall offers a competitive total return proposition combining capital growth through FUM expansion and underlying asset appreciation alongside consistent, growing income.
Balance sheet metrics reflect a conservative capital structure that provides considerable capacity for further growth initiatives. Gearing stands at 14.2%, well below prudent levels, with an aggregate investment capacity of $6.4 billion available to deploy across the platforms. This firepower, combined with net equity inflows and active asset management, positions the group to continue accumulating both external funds under management and its own co-investment portfolio, which stands at $3.2 billion. Net tangible assets per security sit at $5.95, with return on contributed equity reaching 26.4% in FY26.
Management has guided FY27 operating earnings per security of 114.0 cents, implying 10.5% growth from FY26 levels, with distributions expected to grow 6.0% to 53.7 cents. These projections assume continuation of net equity inflows and stable asset management fee trajectories. Investors should monitor FUM growth rates, net equity flows, and the group’s capacity to maintain distribution growth momentum through potential market cycles. The earnings demonstrate clear leverage to flows-driven revenue, making investor sentiment and market conditions key variables for portfolio performance.
This announcement is price sensitive material and has been flagged as such 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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