Charter Hall Group has reported a strong first half for FY26, with operating earnings surging 21.6% and record equity inflows driving funds under management to $92.2 billion. The group has upgraded its full-year earnings guidance, signalling confidence amid ongoing market volatility.
- Operating earnings up 21.6% to $238.8 million
- Record $4.8 billion gross equity inflows in 1H FY26
- Funds under management reach $92.2 billion
- Development pipeline valued at $17.9 billion
- FY26 earnings guidance upgraded to 100 cents per security
Strong Half-Year Performance
Charter Hall Group has delivered a robust set of results for the half-year ending December 31, 2025, with operating earnings rising 21.6% to $238.8 million. This performance reflects a growing confidence in the Australian commercial property sector, despite global economic uncertainties. Statutory earnings post-tax reached $272.8 million, while distributions per security increased by 6%, underscoring the group’s commitment to delivering steady returns to investors.
The company’s Managing Director and Group CEO, David Harrison, highlighted the record equity inflows of $4.8 billion as a key driver behind the strong results. This influx of capital, the highest in three decades, was fuelled by both domestic and international institutional investors seeking the relative stability of Australian real estate amid volatile global markets.
Expanding Funds Under Management and Development Pipeline
Charter Hall’s funds under management (FUM) have expanded significantly, reaching $92.2 billion, with property FUM accounting for $73.6 billion. This growth was supported by $8.5 billion in acquisitions and $1.2 billion in net property revaluations, partially offset by divestments. The group’s development pipeline remains robust at $17.9 billion, reflecting ongoing efforts to modernise assets and meet tenant demand across all core sectors.
The property investment portfolio, valued at $2.8 billion, continues to demonstrate strong earnings growth and diversification. With a high occupancy rate of 97.1% and a weighted average lease expiry of 8.2 years, the portfolio benefits from a mix of CPI-linked rent increases and fixed escalations, providing an implicit inflation hedge and stable income streams.
Capital Management and Sustainability Initiatives
Charter Hall has also strengthened its capital position, completing $10 billion in new and refinanced debt facilities with improved terms, including lower credit margins and extended loan tenors. The group maintains a conservative balance sheet with gearing at 7.7% and liquidity of $1 billion, positioning it well to capitalise on future opportunities.
On the sustainability front, Charter Hall has achieved a significant milestone by operating as a Net Zero platform since July 2025. This is supported by extensive onsite solar installations and renewable electricity contracts, with plans to expand solar capacity further. These initiatives align with growing investor and tenant expectations around environmental responsibility.
Upgraded Earnings Guidance and Outlook
Reflecting confidence in its strategic positioning and market conditions, Charter Hall has upgraded its FY26 post-tax operating earnings per security guidance to 100 cents, representing a 22.9% increase over FY25. Distribution guidance also anticipates 6% growth. The group cites constrained supply across sectors and strong tenant demand as key factors supporting this outlook.
David Harrison emphasised the group’s disciplined approach and scale as competitive advantages that will enable Charter Hall to accelerate growth and continue delivering value to investors and tenants alike.
Bottom Line?
With record inflows and an upgraded earnings outlook, Charter Hall is poised to capitalise on constrained supply and sustained tenant demand in FY26.
Questions in the middle?
- How will Charter Hall’s assumption of no performance fees in FY26 impact actual earnings?
- What risks could arise if global market volatility intensifies and affects capital inflows?
- How will the group prioritise deployment of its $7.8 billion investment capacity amid evolving sector dynamics?