Charter Hall’s Funds Under Management Hit $84.3 Billion as Property EBITDA Grows 7.8%
Charter Hall Group delivered robust full-year 2025 results, marked by operating earnings growth and a strengthened funds management portfolio. The group projects continued momentum into FY26 with increased earnings and distribution guidance.
- 7.8% growth in Property Investment EBITDA
- Funds under management reach $84.3 billion
- FY26 guidance – 10.6% increase in post-tax operating earnings per security
- Strong balance sheet with low 6.0% gearing and $0.7 billion investment capacity
- Sustainability milestone, Net zero emissions for Scope 1 and 2 achieved
Robust Financial Performance Amid Market Recovery
Charter Hall Group has reported a strong finish to its 2025 financial year, showcasing a 7.8% increase in Property Investment EBITDA and maintaining a resilient balance sheet with gearing at a conservative 6.0%. Operating earnings per security (OEPS) rose to 81.4 cents, supported by a diversified portfolio and active asset management.
The group’s funds under management (FUM) expanded to $84.3 billion, bolstered by significant equity inflows and a dynamic transaction pipeline that saw $6.1 billion in gross property transactions. This growth reflects Charter Hall’s strategic focus on accessing diverse equity sources, including wholesale, listed, and direct investors, which collectively underpin its funds management earnings.
Development Pipeline and Leasing Momentum
Charter Hall’s development pipeline remains substantial at $17 billion, with high pre-leasing rates of 94% for Industrial & Logistics and 79% for Office projects. Notable completions include a multi-level logistics estate in Sydney and premium office developments such as Chifley Square South Tower and 360 Queen Street Brisbane. Leasing activity demonstrated strong momentum, with effective rents outpacing face rents and tenant retention rates exceeding 95% in key office assets.
Sustainability and Community Engagement
The group has made significant strides in sustainability, achieving a 77% reduction in net Scope 1 and 2 emissions and operating its entire platform as net zero from July 2025. Investments in solar capacity and renewable electricity contracts now supply 80% of tenant energy needs. Charter Hall also deepened its community partnerships, contributing over 2,900 volunteer hours and supporting vulnerable youth employment initiatives.
Outlook and Guidance
Looking ahead, Charter Hall projects a 10.6% increase in post-tax operating earnings per security to approximately 90 cents for FY26, alongside a 6% growth in distributions per security. This guidance assumes stable market conditions and excludes performance fee income. The group’s strong capital position, with $0.7 billion in investment capacity, positions it well to capitalize on emerging opportunities across its diversified portfolio.
Overall, Charter Hall’s FY25 results underscore its market leadership in real estate asset management, driven by strategic fund creation, disciplined capital management, and a commitment to sustainability and tenant engagement.
Bottom Line?
Charter Hall’s FY25 momentum and robust balance sheet set the stage for continued growth, but market conditions and development execution will be key to sustaining this trajectory.
Questions in the middle?
- How will rising interest rates and inflation impact Charter Hall’s development pipeline and leasing activity in FY26?
- What is the outlook for performance fee income given the current market environment?
- How will Charter Hall leverage its net zero platform to attract new investors and tenants?
