Charter Hall Group FY26 earnings: Operating earnings up 26.8%

The Charter Hall Group (ASX: CHC) share price is in focus today after the integrated property investment and funds management giant reported a 26.8% rise in operating earnings per security and a 6% lift in its annual distribution.

What did Charter Hall Group report?

• Operating earnings of $488.1 million, with operating earnings per security (OEPS) post-tax of 103.2 cents, up 26.8%
• Statutory earnings post-tax of $427.9 million
• Distribution per security of 50.7 cents, up 6.0%
• Gross equity inflows of $6.7 billion and $17.1 billion of gross property transactions
• Group funds under management (FUM) reached $94.3 billion, including $76.0 billion of Property FUM
• Property Investment portfolio value of $3.2 billion

What else do investors need to know?

Charter Hall’s managed property portfolio remains highly diversified, with no single asset making up more than 6% of the portfolio and government tenants accounting for 26%. Portfolio occupancy stood at 97.8%, supported by a weighted average lease expiry (WALE) of 8.7 years and average rent review of 3.5%.

Development completions reached $1.4 billion, while the development pipeline grew to $20.4 billion, reflecting expanded industrial and office projects. Charter Hall achieved Net Zero Scope 1 and 2 emissions from 1 July 2025, five years ahead of target, and five of its managed portfolios ranked among GRESB’s global top 10 for sustainability.

During the year, the group completed $22.6 billion in new and refinanced debt across 66 funds, giving it $1.0 billion in balance sheet investment capacity and a low gearing ratio of 14.2%.

What did Charter Hall Group management say?

David Harrison, Managing Director & Group CEO, said:

FY26 was a strong year for the Group, with record gross equity inflows for the Property Funds Management business of $6.7 billion, gross property transactions of $17.1 billion and the launch of multiple new funds and partnerships.

What’s next for Charter Hall Group?

Looking ahead, management expects FY27 post-tax operating earnings per security of around 114.0 cents, representing 10.5% growth, assuming no performance fee revenue. FY27 distribution per security guidance is for 6% growth over FY26 levels. Charter Hall’s strategy remains focused on matching quality real estate opportunities with tenant demand and further expanding its funds platform.

Sustained momentum in both institutional and direct investor channels, along with a robust development pipeline and a strong capital position, are set to underpin future earnings and portfolio growth.

Charter Hall Group share price snapshot

The Charter Hall share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a modest decline of 3%.

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The post Charter Hall Group FY26 earnings: Operating earnings up 26.8% appeared first on The Motley Fool Australia.

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