Charter Hall updates FY26 guidance amid strong insto appetite

Charter Hall group has updated its FY26 guidance, increasing security value based on strong performances from its institutional property funds management (PFM) platform.

The group has increased its operating earnings per security from 100 cents to 103 cents, a 26.5% increase from FY25.

The growth is underpinned by heightened allocation from institutional investors, with $6.5 billion inflows to its PFM platform through investments, partnerships and mandates during the period.

PFM's funds under management (FUM) surged to $74.7 billion, up from $71.7 billion as at 31 December 2025 with a new $1.2 billion diversified core direct institutional real estate mandate in April, following another $2.1 billion mandate secured in 1H FY26.

Recent client activity has resulted in the addition of 25 new institutional investors to the platform over the last 18 months, including several institutions making initial allocations to the Australian property sector, supporting long term growth potential, Charter Hall said.

The update also follows the launch of the Telco Exchange Fund 2 (TEF2), by Charter Hall Direct, achieving full reservation of its $82 million equity raising, which provides exposure to Australia's telecommunications data exchange assets.

Commenting, managing director and group chief executive David Harrison said Australia continues to present a sizable appeal for institutional capital across the property market.

"We are seeing increased allocations from existing institutional investors alongside new domestic and offshore inflows seeking diversified exposures," Harrison said.

"The resilience of unlisted property returns, and inflation hedge characteristics continue to support strong investor demand, with Australia remaining a preferred destination for global capital.

"Our platform scale, disciplined capital deployment and co-investment alignment continues to drive equity flows and sustained earnings growth."

Looking ahead, Harrison said FY26 is set to be the strongest year of capital raising since inception despite recent changes to capital gains tax and negative gearing brought forward in the Federal Budget.

"Across the capital spectrum, we anticipate heightened demand for higher yielding retail, industrial, social infrastructure and office assets, particularly when secured on long lease contracts with fixed and inflation linked annual rental growth," Harrison continued.

"As Australia's largest diversified manager of attractive yielding real estate, active across public and private markets, we see continued growth in capital inflows seeking to partner with the group."