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Charter Hall Group
(Sydney:CHC)
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Rating:54Neutral
Price Target:
AU$18.50
â–¼(-10.24% Downside)
Action:Downgraded
Date:08/22/26
The score is held back primarily by deteriorating cash flow (negative operating and free cash flow in 2026) and higher balance-sheet leverage, alongside weak technical momentum with the price trading below key moving averages. These are partially offset by constructive FY27 guidance and positive earnings-call sentiment around earnings/FUM growth, plus a reasonable (not cheap) valuation and modest dividend yield.
Positive Factors
Funds Under Management Growth
Rapid FUM expansion strengthens Charter Hall’s recurring management-fee base and demonstrates continued investor demand for its property strategies. A larger platform can support operating leverage, broaden capital deployment opportunities, and provide a durable foundation for earnings growth.
Negative Factors
Weak Cash Generation
The shift to negative operating and free cash flow weakens earnings quality and reduces internal funding flexibility. If it persists, Charter Hall may have less capacity to fund investments, support distributions, or absorb property-market volatility without relying more heavily on external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Funds Under Management Growth
Rapid FUM expansion strengthens Charter Hall’s recurring management-fee base and demonstrates continued investor demand for its property strategies. A larger platform can support operating leverage, broaden capital deployment opportunities, and provide a durable foundation for earnings growth.
Read all positive factors
Charter Hall Group (CHC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$8.93B
Dividend Yield2.69%
Average Volume (3M)2.00M
Price to Earnings (P/E)25.2
Beta (1Y)1.02
Revenue Growth-19.06%
EPS Growth6.95%
CountryAU
Employees447
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.75
Shares Outstanding472,997,200
10 Day Avg. Volume1,721,757
30 Day Avg. Volume1,995,709
Financial Highlights & Ratios
PEG Ratio-1.72
Price to Book (P/B)18.58
Price to Sales (P/S)19.42
P/FCF Ratio-478.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$24.26Price Target Upside17.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.16
Revenue Forecast (FY)AU$968.13M
Charter Hall Group Business Overview & Revenue Model
Company Description
Charter Hall Group stands as a premier integrated property entity in Australia, leveraging over three decades of profound expertise in both property investment and funds management. Our deep understanding of the property market enables us to sourc...
How the Company Makes Money
Charter Hall primarily makes money through a funds management model tied to real estate investment vehicles it manages, alongside income and returns from property and development activities. Key revenue streams include: (1) Funds management fees: ...
Charter Hall Group Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call presents a broadly positive picture: strong operating earnings (+26.8%), robust FUM and Property FUM growth (+12% and ~14%), record equity inflows ($6.7B) and high transaction activity ($17.1B). Management provided confident FY'27 guidance (OEPS ~$1.14, +10.5%) and outlined multiple sector strengths (office outperformance, industrial fundamentals, convenience retail scale, large development pipeline) alongside sustainability and financing progress. Notable challenges include higher operating/employee costs driven by one-off STI outperformance, modestly higher net finance costs and elevated gearing from warehousing transactions, exclusion of performance fees from guidance (creating upside uncertainty), and some short-term inflow timing volatility. On balance, the highlights substantially outweigh the lowlights, with management conveying confidence in ongoing FUM growth, earnings momentum and capital deployment capability.Positive Updates
Strong Operating Earnings Growth
Operating earnings (post-tax) rose 26.8% to $488.1 million, or $103.20 per security. Statutory NPAT increased ~30% to $427.9 million.
Negative Updates
Rising Operating and Employee Costs
Operating expenses increased 6%; employee costs on statutory income statement rose by ~ $50M (from $185M to $235M). FY'26 included a one-off STI outperformance component (187% average STI award) that contributed ~ $30M of extra cost, with partial (~$15M) expected easing in FY'27.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Operating Earnings Growth
Operating earnings (post-tax) rose 26.8% to $488.1 million, or $103.20 per security. Statutory NPAT increased ~30% to $427.9 million.
Read all positive updates
Company Guidance
Charter Hall guided FY27 post‑tax operating earnings of approximately $1.14 per security (c.10.5% growth on FY26), noting this delivers ~40% growth over the three years from FY24; distribution guidance is $0.537 per security (6% DPS growth, the 16th consecutive year at that rate) and the FY27 guidance explicitly excludes any performance‑fee revenue and assumes no material change in market conditions. Management reiterated an expectation that Group FUM (FY26: $94.3bn, +$10bn / +12%; Property FUM FY26: $76.0bn, +13.8%) will exceed $100bn in FY27, highlighted FY26 operating earnings of $488.1m (reported as $103.2 per security) and FY26 metrics including NTA ~$5.95, return on contributed equity 26.4% post‑tax, gearing ~14.2%, headstock investment capacity ~A$1.0bn and total group investment capacity ~A$6.4bn.Charter Hall Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
34
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 556.70M | 687.80M | 597.80M | 870.20M | 1.10B |
| Gross Profit | 547.80M | 677.40M | 402.70M | 668.50M | 790.50M |
| EBITDA | 524.30M | 455.70M | -82.40M | 450.10M | 580.90M |
| Net Income | 241.50M | 327.70M | -222.10M | 196.10M | 927.00M |
Balance Sheet | |||||
| Total Assets | 3.96B | 3.54B | 3.64B | 4.10B | 4.22B |
| Cash, Cash Equivalents and Short-Term Investments | 206.30M | 286.70M | 382.70M | 401.40M | 594.70M |
| Total Debt | 717.90M | 496.00M | 474.50M | 474.20M | 480.30M |
| Total Liabilities | 1.06B | 833.60M | 823.10M | 848.00M | 932.80M |
| Stockholders Equity | 582.00M | 2.71B | 2.82B | 3.26B | 3.25B |
Cash Flow | |||||
| Free Cash Flow | -22.60M | 354.80M | 425.50M | 336.60M | 592.70M |
| Operating Cash Flow | -19.90M | 356.00M | 428.00M | 338.90M | 603.80M |
| Investing Cash Flow | -6.50M | -216.70M | -256.00M | -321.10M | -358.50M |
| Financing Cash Flow | -54.00M | -235.30M | -190.70M | -211.10M | -2.50M |
Charter Hall Group Technical Analysis
Neutral
20.61
Price Trends
20.00
Negative
21.00
Negative
21.05
Negative
Market Momentum
-0.31
Negative
51.49
Neutral
71.24
Neutral
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 20.61 is above the 20-day moving average (MA) of 18.28, above the 50-day MA of 20.00, and below the 200-day MA of 21.05, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.24 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$10.39B | 10.44 | 9.44% | 5.89% | 14.63% | 18.93% | |
74 Outperform | AU$8.72B | 8.27 | 9.83% | 5.33% | -7.59% | 178.60% | |
69 Neutral | AU$55.81B | 19.97 | 11.41% | 1.10% | 17.33% | 59.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$6.08B | 12.93 | 4.83% | 6.50% | -28.16% | 250.74% | |
58 Neutral | AU$728.33M | -9.40 | -4.99% | 10.43% | -5.19% | -377.08% | |
54 Neutral | AU$8.93B | 25.16 | 20.47% | 2.69% | -19.06% | 6.95% |
* Real Estate Sector Average
AU:CHC
Charter Hall Group
18.87
-2.82
-12.99%
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-26.58%
Charter Hall Group Corporate Events
Daiichi Group Entities Exit Substantial Holder Status in Charter Hall
Sep 29, 2026
Charter Hall Group has disclosed that TAL Daiichi Life Australia Pty Ltd and its related Daiichi Life Group entities have ceased to be substantial holders in the company. The change follows Challenger Limited’s notification that it no longer...
Challenger Exits Substantial Holder Position in Charter Hall Group
Sep 29, 2026
Challenger Limited has lodged a formal notice with the ASX confirming that it has ceased to be a substantial holder in Charter Hall Group. The change in status reflects a reduction in Challenger’s relevant interest in Charter Hall’s vo...
Charter Hall Director David Harrison Increases Equity Stake Through Vesting of Incentive Rights
Sep 4, 2026
Charter Hall Group has reported a change in director David Harrison’s interests in the group’s stapled securities and rights, reflecting the vesting of various performance and service-based incentives. The update, lodged with the ASX, ...
Charter Hall Expands Stapled Security Base Through Option Conversions
Sep 4, 2026
Charter Hall Group has notified the market of the issue and transfer of 6,106,862 CHC stapled securities, designated as “US Prohibited,” following the exercise or conversion of previously unquoted options or other convertible securitie...
Charter Hall Cuts 2.2 Million Lapsed Performance Rights From Issued Capital
Sep 4, 2026
Charter Hall Group has notified the market of the cessation of 2,238,118 performance rights, which have lapsed after the underlying conditions were not met or became incapable of being satisfied. The securities cessation, effective 31 August 2026,...
TAL Daiichi Group Ceases to Be Substantial Holder in Charter Hall
Sep 4, 2026
TAL Daiichi Life Australia Pty Ltd and its Daiichi Life Group associates have notified Charter Hall Group that they have ceased to be substantial holders in the company, following Challenger Limited’s disclosure that it no longer holds a sub...
Challenger exits substantial holder status in Charter Hall Group
Sep 4, 2026
Challenger Limited has lodged a formal notice with the ASX stating it has ceased to be a substantial holder in Charter Hall Group, the Australian property and funds management company. The filing indicates that Challenger and its associated entiti...
Charter Hall outlines AMIT fund payment and fully franked dividend for June 2026 period
Aug 26, 2026
Charter Hall Funds Management Limited, as responsible entity for Charter Hall Property Trust, has declared that the trust is an Attribution Managed Investment Trust for the six months to 30 June 2026, detailing a total fund payment of 25.6885 cent...
Charter Hall Details 2026 Corporate Governance Framework
Aug 20, 2026
Charter Hall Group has released its 2026 Corporate Governance Statement outlining the governance framework that guides the effective management of the business and its compliance with statutory obligations. The framework is designed to reinforce t...
Charter Hall Flags Key Assets in 2026 Full‑Year Results Agenda
Aug 20, 2026
Charter Hall Group is a listed Australian property investment and funds management company active in commercial real estate. It manages diversified portfolios spanning logistics facilities, retail centres and office buildings for institutional and...
Charter Hall Delivers Record FY26 Earnings and Expands Property Platform
Aug 20, 2026
Charter Hall Group reported a strong FY26 performance, with operating earnings rising to $488.1 million and operating earnings per security up 26.8%, while funds under management expanded to $94.3 billion, including $76.0 billion in property. The ...
Charter Hall lifts earnings, distributions and reshapes property trust structure
Aug 20, 2026
Charter Hall Group reported a solid financial performance for the year ended 30 June 2026, with revenue edging up 2.2% to $556.7 million and profit after tax attributable to securityholders climbing 30.6% to $427.9 million. Operating earnings, the...
Charter Hall CIO Departs as Group Moves to Interim Investment Leadership
Aug 3, 2026
Charter Hall Group has announced the departure of Chief Investment Officer Sean McMahon after a decade with the business, with his responsibilities to be temporarily overseen by Managing Director and Group CEO David Harrison and other executive co...
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.