Charter Hall Group
(OTCPK:CTOUF)
$
16.82
(0%)
Market Cap: 7.96 Bil
Enterprise Value: 8.33 Bil
PE Ratio: 20.71
PB Ratio: 3.00
GF Score: 79/100 
Full Year 2026 Charter Hall Group Earnings Call Transcript
Aug 21, 2026 / 01:00AM GMT
Release Date Price:
$16.82
Key Points
Positve
- Charter Hall Group (CTOUF) delivered a strong FY26 result with operating earnings per security of $1.032, up 26.8% year-over-year, and provided FY27 guidance of $1.14, representing a further 10.5% growth.
- The company achieved record equity inflows of $6.7 billion during FY26, with strong momentum continuing into FY27 with over $600 million in net inflows in the first six weeks.
- Group FUM grew 12% to $94.3 billion, with property FUM up 13.8% to $76 billion, and the company expects to exceed $100 billion in group FUM during FY27.
- The property investment portfolio (PI) grew to $3.2 billion, with occupancy at 97.8% and a WALE of 8.7 years, contributing to a 17% increase in property investment EBITDA.
- The company maintained a strong balance sheet with 14% gearing, approximately $1 billion in balance sheet investment capacity, and a record $17 billion in property transaction activity during FY26.
- Charter Hall Group (CTOUF) achieved net zero Scope 1 and 2 emissions from July 1, 2025, and increased sustainable finance facilities to $8.2 billion.
- The company's development pipeline grew to approximately $20 billion, with $1.4 billion in completions during FY26, positioning it for future earnings growth.
- The group's effective tax rate was permanently reduced by approximately five percentage points due to capital allocation efficiency, enhancing future earnings.
- The company reported strong like-for-like income growth of 6.97% across the portfolio, with office and industrial sectors showing robust leasing spreads and tenant retention.
- Charter Hall Group (CTOUF) has a diversified platform with 1,620 properties and over 5,700 leases, with top 20 tenants accounting for 52% of income, providing excellent covenant quality.
Negative
- The company's FY27 guidance excludes any performance fee revenue, which could be a downside if performance fees do not materialize, but also indicates a conservative approach.
- Transaction fee revenue of $43.8 million was lower than expected relative to the $17 billion in transaction activity, due to related-party transactions and new mandates that do not generate fees.
- Operating expenses increased by 6%, including a one-off STI outperformance expense of $30 million, which may not be repeated in FY27, but could pressure margins if not managed.
- The company faces potential headwinds from elevated divestment activity, with $5.8 billion in divestments during FY26, which could reduce FUM growth if not offset by acquisitions.
- The office market faces structural challenges, with lower absorption rates and a bifurcation between modern and older buildings, which could impact leasing demand in certain submarkets.
- The company's gearing increased to 14.2%, and while it has capacity, higher drawn debt and undrawn capacity have increased net finance costs, which could impact earnings if rates remain high.
- The company's reliance on equity inflows for growth is subject to market conditions, and a slowdown in inflows could impact future earnings growth.
- The company's listed REITs are trading at discounts to NTA, limiting the ability to raise equity in the listed market, which could constrain growth in that segment.
- The company's development pipeline, while large, carries execution risks, including construction costs and pre-leasing requirements, which could impact profitability.
- The company's performance fee revenue is uncertain and not included in guidance, which could lead to volatility in earnings if market conditions change.
Operator
Ladies and gentlemen, thank you for standing by and welcome to the Charter Hall Group 2026 full-year results briefing. (Operator Instructions) Please note that this conference is being recorded today, Friday, August 21, 2026.
I would now like to hand the conference over to your host today, Mr. David Harrison, Managing Director and Group Chief Executive Officer. Thank you. Sir, please go ahead.
David Harrison
Charter Hall Group - Group Chief Executive Officer, Managing Director, Executive Director
Good morning, and thank you for attending FY26 results call, which our Group CFO, Anastasia Clarke, will present with myself.
Turning to the group's earnings on slide 4, FY26 has seen CHC deliver operating earnings of $488.1 million, translating to $1.032 per security, representing 26.8% growth over FY25. Today, we're also providing FY27 guidance of approximately $114 cents per security, representing a further 10.5% growth over FY26, which delivers a three-year growth of 40% over FY24 to '27. Noting that the FY24 result of $0.814 cents, was an
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