Charter Hall Faces Board Changes Amid Earnings Upgrade and Sustainability Push

A Milestone Year for Charter Hall

At its 2025 Annual General Meeting, Charter Hall Group celebrated two decades on the ASX, marking a journey from $1 billion in funds under management (FUM) at listing to an impressive $84.3 billion in FY25. Chair Stephen Conry reflected on the company’s evolution into one of Australia’s largest and most resilient property investment and funds management groups, underscored by a strong governance framework and a customer-centric approach.

Charter Hall’s Managing Director and Group CEO, David Harrison, highlighted the company’s sustained earnings growth, with operating earnings per security (OEPS) rising 7.4% to 81.4 cents in FY25. This performance was driven by a doubling of net equity inflows and robust leasing activity across diversified property sectors including office, industrial & logistics, retail, and social infrastructure.

Upgraded Earnings Guidance and Growth Drivers

Building on FY25 momentum, Charter Hall upgraded its FY26 OEPS guidance to 95 cents, representing a 16.7% increase over the prior year and a 5.5% uplift from previous forecasts. This optimistic outlook is supported by heightened investment activity, strong equity inflows totaling $3.4 billion in FY25 and an additional $3.2 billion in early FY26, as well as a well-diversified $2.7 billion property investment portfolio with low gearing of 6%.

The company’s tenant relationships remain a strategic pillar, with over 4,500 tenants generating $3.5 billion in annual rent. High occupancy rates, 99% in industrial & logistics and 96% in office, reflect Charter Hall’s ability to meet evolving tenant needs, including long-term lease renewals and expansions. The industrial portfolio benefits from a unique land bank of over 2 million square meters, supporting future development pipelines.

Sustainability and Governance at the Forefront

Charter Hall has integrated sustainability deeply into its operations, achieving net zero platform emissions from July 2025 through solar power, renewable electricity contracts, and carbon offsets. The company boasts Australia’s largest footprint of green-rated assets, with nearly 9 million square meters certified under Green Star Performance ratings. Social initiatives include over $1 million invested in community partnerships and employment programs for vulnerable youth.

Governance remains a focus with a predominantly independent board guiding strategy and oversight. The AGM marked the retirement of long-serving director Karen Moses, who contributed significantly to the company’s growth and governance over nine years. Additionally, the company announced the appointment of EY as its new external auditor, succeeding PwC after 20 years of service.

Looking Ahead

Charter Hall’s strong balance sheet, diversified portfolio, and strategic partnerships position it well to capitalize on constrained supply and growing demand in Australian commercial property markets. With a disciplined approach to capital allocation and a commitment to sustainability and tenant engagement, the Group aims to continue delivering consistent earnings and distribution growth for investors.