Charter Hall Group Ltd. posted a 26.8% year-over-year increase in operating earnings after tax to AUD 488.1 million for the fiscal year ended June 30, 2026, though its shares declined 7.89% to AUD 20.36 following the results release.
The Sydney-based real estate investment manager reported statutory earnings after tax rose 30% to AUD 427.9 million, while distribution per security climbed 6% to 50.7 cents. Funds under management expanded 12% to AUD 94.3 billion, driven by AUD 11.9 billion in acquisitions and AUD 2.1 billion in valuation gains, offset by AUD 5.8 billion in divestments.
Gross equity inflows reached a record AUD 6.7 billion during the year, with property investment and development portfolios growing to AUD 3.2 billion and AUD 3.3 billion, respectively. The group’s net tangible assets stood at AUD 5.95 per security, while balance sheet gearing remained conservative at 14.2%. Operating expenses increased 6%, primarily due to one-off performance incentives and wage inflation.
Charter Hall provided guidance for the fiscal year ending June 30, 2027, projecting operating earnings of approximately 114 cents per security, a 10.5% increase from the prior year. Distribution guidance was set at 53.7 cents per security, marking the 16th consecutive year of 6% growth. Funds under management are expected to surpass AUD 100 billion in FY 2027, with early inflows exceeding AUD 600 million in the first six weeks of the new fiscal year.
The company’s portfolio spans over 12 million square meters across 1,620 properties, generating more than AUD 4 billion in annual rent. Its office platform, valued at AUD 28 billion, maintained 95% occupancy, while industrial and logistics assets, totaling AUD 25 billion, reported 99% occupancy. Development pipelines across sectors expanded to AUD 20 billion, with AUD 1.4 billion in completions during FY 2026.
Charter Hall also highlighted sustainability achievements, including net-zero Scope 1 and 2 emissions since July 1, 2025, and 96 megawatts of installed solar capacity. Sustainable finance facilities increased to AUD 8.2 billion as of the reporting date.
