Charter Hall Reports 16.7% OEPS Growth, $87 Billion FUM, and 6% DPS Rise for FY26
Charter Hall Group reported solid FY25 financial results with significant earnings growth and sustainability milestones, while guiding higher earnings and distributions for FY26.
- FY25 operating earnings per security (OEPS) rose to 81.4 cents
- Distributions per security (DPS) grew 10.4% annually since FY15 to 47.8 cents
- Net zero emissions target achieved platform-wide from July 2025
- Pro-forma funds under management (FUM) reached $87 billion
- FY26 guidance projects OEPS of 95.0 cents and 6% DPS growth
Strong Financial Performance Anchors FY25
Charter Hall Group has delivered a robust set of full-year results for FY25, underscoring its position as a leading real estate asset manager in Australia. The group reported operating earnings per security (OEPS) of 81.4 cents, reflecting a 16.7% increase over the prior year. Distributions per security (DPS) reached 47.8 cents, continuing a decade-long compound annual growth rate of 10.4% since FY15. This steady growth trajectory highlights Charter Hall’s ability to generate consistent returns for investors amid evolving market conditions.
Sustainability Milestones and ESG Leadership
Beyond financial metrics, Charter Hall has made significant strides in sustainability. The group achieved a 77% reduction in net Scope 1 and 2 emissions and will operate as a net zero emissions platform from July 2025, leveraging renewable electricity contracts and on-site solar installations. This commitment is complemented by active community partnerships, including investments exceeding $1 million in natural disaster relief and social enterprise support. Charter Hall’s ESG credentials are further validated by top-tier ratings from GRESB, MSCI, and Sustainalytics, positioning it as a peer leader in responsible property management.
Expanding Funds Under Management and Investment Capacity
The group’s funds under management (FUM) have expanded to a pro-forma $87 billion, supported by strong equity inflows across wholesale, listed, and direct funds. FY25 saw net equity inflows double year-on-year, driven predominantly by wholesale investors. This capital growth underpins Charter Hall’s capacity to pursue new investment opportunities and fund organic growth initiatives. The group’s investment capacity stands at $5.9 billion, providing ample liquidity to capitalize on market opportunities.
Diverse Portfolio and Leasing Momentum
Charter Hall’s diversified property portfolio spans industrial, office, convenience retail, and social infrastructure sectors. The industrial and logistics segment boasts high occupancy rates and strong leasing momentum, with rents on renewed leases rising 21% above previous levels. The office portfolio maintains solid occupancy and lease durations, while the convenience retail and social infrastructure assets continue to deliver stable income streams with long lease terms. This diversification supports resilience and steady cash flow generation.
Governance and Capital Management
At the recent Annual General Meeting, shareholders approved key governance items including the re-election of director Greg Paramor AO, adoption of the remuneration report, and issuance of performance rights to CEO David Harrison. Notably, the group secured shareholder approval for a capital reallocation program of up to $200 million, allowing flexibility in returning capital to investors or reinvesting in the business. Additionally, Charter Hall announced the appointment of Ernst & Young as its new external auditor, pending regulatory approvals.
Outlook and FY26 Guidance
Looking ahead, Charter Hall projects FY26 operating earnings per security of approximately 95.0 cents, representing a 16.7% increase over FY25, alongside a 6% growth in distributions per security. This guidance continues a 15-year streak of consistent distribution growth, signaling confidence in the group’s earnings power and capital management strategy. The outlook assumes stable market conditions and excludes performance fees, suggesting a conservative baseline for investors.
Bottom Line?
Charter Hall’s blend of strong financial growth, sustainability leadership, and strategic capital management sets the stage for continued market outperformance in FY26.
Questions in the middle?
- How will Charter Hall sustain its earnings growth amid potential market volatility in FY26?
- What impact will the auditor transition from PwC to Ernst & Young have on governance and reporting?
- How will Charter Hall’s net zero commitment influence future asset acquisitions and tenant relationships?