Charter Hall Group

First-half FY26 operating earnings after tax were $238.8 million, up 21.6% on the prior comparable period, or $0.505 per security. Statutory profit after tax was $272.8 million, and distributions per security continue to grow at 6%. Group FUM increased from $84.3 billion to $92.2 billion on a pro forma basis, while property FUM rose from $66.8 billion to $73.6 billion. Funds management secured $4.8 billion of gross equity inflows in the half, and total transactions were $9.8 billion, including $6.6 billion of acquisitions and $3.2 billion of divestments. Balance sheet gearing was 7.7%, NTA increased to $5.54, and the group said it has $1 billion of investment capacity and $7.8 billion of total platform deployment capacity. FY26 guidance was upgraded to approximately $1.00 per security in post-tax operating earnings, excluding performance fees, with DPS guidance for 6% growth over FY25.

David Harrison framed the half as a period of broad-based momentum across the platform, pointing to record inflows, stronger FUM, and early signs of recovery in office and other property markets. He emphasized Charter Hall’s capital-light model, long history of dividend growth, and ability to recycle earnings into higher-yielding investments without needing public equity to grow. His tone was confident and constructive, especially on office, where he argued the recovery is still early and could surprise over the next few years.

Anastasia Clarke highlighted first-half operating earnings after tax of $238.8 million, up 21.6%, and statutory NPAT of $272.8 million. She said property investment income benefited from 4% like-for-like funds income growth and a $290 million net equity investment over the past 18 months, while development investment EBITDA rose to $38.1 million and FM EBITDA was $142.3 million. She also noted $73.5 million of variable operating costs, $10 billion of debt refinancing year-to-date, a 27-basis-point average reduction in credit margins across the platform, a 10-basis-point lower WACD versus 30 June 2025, and $400 million of new undrawn debt lines added after balance date.

Analysts focused on the scale and deployment of CCRF inflows, the effect of rising bond yields on capital partner appetite, and why transaction fees looked low relative to the $6.6 billion of acquisitions. Management said CCRF still has about $1 billion of acquisition capacity and expects further inflows, while also explaining that some transactions do not generate fees, and some revenue will fall into the second half if deals were not unconditional at 31 December. Questions also probed office recovery, AI’s impact on office demand, and the $5.5 billion living/mixed-use pipeline; management said core CBD office is benefiting from strong leasing, AI is more likely to pressure weaker suburban assets than prime CBD stock, and the living pipeline will progress only when planning, capital partners, presales and construction pricing all align.