Charter Hall Group reported a 26.8% increase in operating earnings to A$488.1 million for the year ended June 30, 2026, though its shares fell 7.9% to A$20.36 as investors weighed guidance for FY27.
The Australian property investment and funds management platform posted statutory earnings after tax of A$427.9 million, up 30% from the prior year. Earnings per security rose to 103.2 cents, while the return on contributed equity climbed to 26.4% post-tax, from 20.8% in FY25. Funds under management grew 12% to A$94.3 billion, driven by A$11.9 billion in acquisitions and A$6.7 billion in gross equity inflows, nearly double the A$3.4 billion raised in FY25.
Total transaction activity reached A$17.1 billion in FY26, including A$11.7 billion in acquisitions and A$5.4 billion in divestments. The company’s portfolio expanded to 1,619 properties covering 12.1 million square meters, with net rent revenue of A$4.0 billion. Occupancy remained robust at 97.4%, while the weighted average lease expiry extended to 7.3 years.
Charter Hall’s industrial and logistics portfolio, valued at A$24.9 billion, achieved 99.1% occupancy and delivered like-for-like valuation growth of 19.0% since June 2021. The office portfolio, worth A$27.9 billion, reported 95% occupancy against a national average of 83.1%, with a 6.8-year weighted average lease expiry. Social infrastructure assets, including a A$445 million acquisition of a Sonic Healthcare pathology lab in Brisbane, grew 10.3% on a like-for-like basis.
The company’s development pipeline totaled A$20.4 billion at completion, with A$1.4 billion in projects finalized during FY26. Industrial and logistics developments accounted for A$7.1 billion of the pipeline, while office projects reached A$7.8 billion. Charter Hall also issued a A$250 million medium-term note in March 2026 and expanded sustainable finance facilities to A$8.2 billion, representing 23% of all platform debt.
For FY27, Charter Hall guided operating earnings to approximately 114.0 cents per security, a 10.5% increase, while maintaining its distribution growth target of 6% to 53.7 cents per security—the 16th consecutive year of such growth. Group funds under management are expected to exceed A$100 billion in FY27, with over A$600 million in equity inflows secured in the first six weeks of the fiscal year.
The company’s shares, which had traded between A$18.18 and A$25.95 over the past year, ended FY26 at A$20.36, down 7.9% from A$22.11. The price-to-earnings ratio stood at 35.28 as of the close.
