Charter Hall Group’s shares fell 7.89% to close at A$20.36 on Friday after the real estate investment manager reported record inflows and strong earnings growth for the 2026 financial year.
The company posted operating earnings of A$488.1 million, up 26.8% year-over-year, while pre-tax operating earnings rose 18.4% to A$570 million. Total segment EBITDA increased 15.2% to A$696.2 million, driven by a 17% rise in property investment EBITDA to A$341.6 million and a 51.5% jump in development investment EBITDA to A$61.5 million. Funds management EBITDA grew 8% to A$293.1 million.
Gross equity inflows reached a record A$6.7 billion in FY26, nearly doubling the prior year’s A$3.4 billion, with institutional wholesale flows accounting for 94.4% of the total. Group funds under management expanded to A$94.3 billion, up A$10 billion from FY25, while property funds under management grew 13.8% to A$76 billion.
Total gross transactions amounted to A$17.7 billion, including A$11.9 billion in acquisitions and A$5.8 billion in divestments. Net tangible assets per security rose to A$5.95 from A$5.55, and return on contributed equity increased to 26.4% post-tax from 20.8% a year earlier.
The company’s portfolio expanded to 1,619 properties covering 12.1 million square meters of lettable area, with occupancy at 97.4% and a weighted average lease expiry of 7.3 years. Industrial and logistics assets led performance with 99.1% occupancy and 19% like-for-like valuation growth since June 2021.
Charter Hall maintained its distribution guidance at 53.7 cents per security, marking the 16th consecutive year of 6% growth. FY27 operating earnings are forecast at approximately 114.0 cents per security, implying a 10.5% increase over FY26. The company also expects to surpass A$100 billion in group funds under management during the current financial year.
Shares of Charter Hall, which trade between A$18.18 and A$25.95 over the past 52 weeks, have declined 21% year-to-date despite the strong operational metrics.
