Charter Hall Group (AU:CHC)
ASX:CHC
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Charter Hall Group
(Sydney:CHC)
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Rating:70Outperform
Price Target:
AU$22.00
▲(2.42% Upside)
Action:UpgradedDate:02/19/26
The score is driven primarily by solid financial fundamentals (profitability rebound, low leverage, and good cash conversion) and a strong, guidance-upgraded earnings call. These positives are partially offset by an expensive valuation (high P/E with only a moderate yield) and mixed technical signals (negative MACD and below the 50-day average).
Positive Factors
Scale & FUM growth
Record six‑month equity inflows and near A$100bn platform scale materially expand the recurring fee base and diversify revenue across mandates and sectors. Larger FUM supports stable base fees, improves pricing leverage with institutional clients and lowers single‑asset concentration risk over the medium term.
Negative Factors
Rising variable operating costs
Higher staff-related and incentive accruals are raising the variable cost base, pressuring funds‑management margins that underpin recurring earnings. If elevated, these costs could persist and erode FM EBITDA and distributable cashflow, reducing margin resilience through the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & FUM growth
Record six‑month equity inflows and near A$100bn platform scale materially expand the recurring fee base and diversify revenue across mandates and sectors. Larger FUM supports stable base fees, improves pricing leverage with institutional clients and lowers single‑asset concentration risk over the medium term.
Read all positive factors
Charter Hall Group (CHC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.43B
Dividend Yield1.97%
Average Volume (3M)1.01M
Price to Earnings (P/E)10.6
Beta (1Y)1.03
Revenue Growth15.06%
EPS Growth47.66%
CountryAU
Employees447
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.51
Shares Outstanding472,997,200
10 Day Avg. Volume990,000
30 Day Avg. Volume1,006,651
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)3.35
Price to Sales (P/S)13.20
P/FCF Ratio25.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$25.79Price Target Upside20.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.03
Revenue Forecast (FY)AU$871.71M
Charter Hall Group Business Overview & Revenue Model
Company Description
With over 30 years' experience in property investment and funds management, we're one of Australia's leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors: offic...
How the Company Makes Money
Charter Hall primarily makes money through (1) funds management income earned for managing unlisted and listed real estate funds/vehicles and mandates on behalf of investors, and (2) property-related income and value outcomes from its own balance-...
Charter Hall Group Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: management reported strong operating earnings growth (OEPS +21.6%), record equity inflows ($4.8bn), significant FUM and property FUM expansion, a large pre-committed development pipeline, and upgraded FY26 guidance to $1.00 per security (23% growth). Balance sheet metrics remain robust (7.7% gearing, $1bn dry powder) and financing margins have improved. Caveats include higher variable operating costs, timing/recognition nuances in transaction fee revenue, construction and residential execution risks, and exposure to a higher interest rate environment — all manageable but worth monitoring. On balance, the positive operational momentum, fundraising success and upgraded guidance outweigh the near-term cost and timing challenges.Positive Updates
Strong operating earnings and EPS growth
Operating earnings for H1 FY26 were $238.8–$239.0 million and OEPS was $0.505, a 21.6% increase on the prior comparable period; management upgraded FY26 OEPS guidance to ~$1.00 (23% growth vs FY25).
Negative Updates
Higher operating and variable costs
Variable operating costs increased to $73.5 million in H1 (higher employee costs and payroll tax accruals tied to outperformance and STI accruals), placing pressure on near-term FM margins.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong operating earnings and EPS growth
Operating earnings for H1 FY26 were $238.8–$239.0 million and OEPS was $0.505, a 21.6% increase on the prior comparable period; management upgraded FY26 OEPS guidance to ~$1.00 (23% growth vs FY25).
Read all positive updates
Company Guidance
Charter Hall upgraded FY‑26 post‑tax operating earnings guidance to ~A$1.00 per security (23% above FY‑25 and A$0.05 above the AGM‑upgraded A$0.95), excluding performance fees, and expects distributions per security to grow ~6% (continuing 15 years of consecutive DPS growth); the upgrade follows H1 operating earnings of A$239m (OEPS A$0.505), record H1 gross equity inflows of A$4.8bn, pro‑forma Group FUM of A$92.2bn (Property FUM A$73.6bn), H1 transaction volume A$9.8bn, a strong post‑tax return on contributed equity of 23.1% (pre‑tax >28%), low balance‑sheet gearing of 7.7% with A$1bn dry powder and A$7.8bn platform deployment capacity, and is given on a “no material adverse change” basis.Charter Hall Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 676.40M | 687.80M | 597.80M | 870.20M | 1.10B | 668.40M |
| Gross Profit | 752.40M | 677.40M | 402.70M | 668.50M | 790.50M | 413.60M |
| EBITDA | 560.80M | 455.70M | -82.40M | 450.10M | 580.90M | 243.90M |
| Net Income | 539.40M | 327.70M | -222.10M | 196.10M | 927.00M | 495.60M |
Balance Sheet | ||||||
| Total Assets | 3.55B | 3.54B | 3.64B | 4.10B | 4.22B | 3.32B |
| Cash, Cash Equivalents and Short-Term Investments | 224.60M | 286.70M | 382.70M | 401.40M | 594.70M | 351.90M |
| Total Debt | 487.70M | 496.00M | 474.50M | 474.20M | 480.30M | 564.40M |
| Total Liabilities | 699.00M | 833.60M | 823.10M | 848.00M | 932.80M | 806.70M |
| Stockholders Equity | 2.86B | 2.71B | 2.82B | 3.26B | 3.25B | 2.37B |
Cash Flow | ||||||
| Free Cash Flow | 349.10M | 354.80M | 425.50M | 336.60M | 592.70M | 220.00M |
| Operating Cash Flow | 351.70M | 356.00M | 428.00M | 338.90M | 603.80M | 225.60M |
| Investing Cash Flow | -184.60M | -216.70M | -256.00M | -321.10M | -358.50M | -180.30M |
| Financing Cash Flow | -231.80M | -235.30M | -190.70M | -211.10M | -2.50M | 67.70M |
Charter Hall Group Technical Analysis
Neutral
21.48
Price Trends
20.86
Negative
22.51
Negative
22.05
Negative
Market Momentum
-0.32
Negative
52.30
Neutral
91.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CHC, the sentiment is Neutral. The current price of 21.48 is above the 20-day moving average (MA) of 19.14, above the 50-day MA of 20.86, and below the 200-day MA of 22.05, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CHC.
Charter Hall Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$9.43B | 10.60 | 19.38% | 1.97% | 15.06% | 47.66% | |
69 Neutral | AU$8.72B | 10.58 | 7.84% | 4.41% | 12.66% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$10.08B | 11.82 | 8.50% | 4.29% | 4.75% | 170.39% | |
56 Neutral | AU$6.38B | 5.34 | 4.78% | 5.32% | 4.52% | ― | |
54 Neutral | AU$2.44B | 4.72 | 6.69% | 6.14% | -9.63% | ― | |
53 Neutral | AU$1.60B | 7.35 | 1.57% | 8.12% | -0.33% | 58.26% |
* Real Estate Sector Average
AU:CHC
Charter Hall Group
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29.35%
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Charter Hall Long WALE REIT
3.44
-0.04
-1.18%
Charter Hall Group Corporate Events
Charter Hall Wins $1.2 Billion Institutional Property Mandate
Apr 8, 2026
Charter Hall Group has secured a new $1.2 billion diversified direct property mandate from an existing institutional client, further consolidating its role as a major manager of core real estate across Australia. While portfolio details remain con...
Charter Hall Appoints Darren Steinberg to Board, Discloses Initial Securities Interest
Mar 2, 2026
Charter Hall Group has appointed Darren Joseph Steinberg as a director effective 25 February 2026, formalising his role on the board of the stapled entity comprising Charter Hall Limited and Charter Hall Property Trust. The initial director’...
Charter Hall details AMIT fund payment and stapled security cash distribution
Feb 25, 2026
Charter Hall Property Trust, part of Charter Hall Group, has confirmed its status as an Attribution Managed Investment Trust for the six months to 31 December 2025 and detailed the tax components of its latest distribution. The trust declared a ca...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.