Fund Manager Summary
The fund managers believe that the outlook for Charter Hall Group (CHC) presents a compelling investment opportunity, particularly as they initiate a new position in the company. In their opinion, despite a significant downturn in the real estate sector, with CHC down 48% from its 2022 high, the current share price of approximately $12.68 does not reflect the true potential of the business. They assert that the market has overly discounted the earnings resilience of CHC, which they consider to be a best-in-class property funds management business. This perspective suggests that the fund managers anticipate a recovery and growth that could outperform current market expectations.
Source: Trading View
Commentary From The Managers
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Wilson Asset Management
24 Nov 2025
$24.86
Summary
- Charter Hall has raised its FY2026 earnings per share guidance by 5.5% to 95 cents, indicating a 17% growth over FY2025.
- The increase is attributed to improvements in property investment, development income, and a positive outlook for funds under management (FUM).
- Direct flows are showing improvement following a previously muted period.
- There is potential for further upgrades, as management is incentivized to elevate the share price to $26 or above to meet retention bonus hurdles exceeding $100 million.
- With its strong market position, Charter Hall is positioned to invest in attractive opportunities as the economic cycle progresses, supporting further growth in FUM and earnings.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Wilson Asset Management
24 Nov 2025
$24.86
- Charter Hall has raised its FY2026 earnings per share guidance by 5.5% to 95 cents, indicating a 17% growth over FY2025.
- The increase is attributed to improvements in property investment, development income, and a positive outlook for funds under management (FUM).
- Direct flows are showing improvement following a previously muted period.
- There is potential for further upgrades, as management is incentivized to elevate the share price to $26 or above to meet retention bonus hurdles exceeding $100 million.
- With its strong market position, Charter Hall is positioned to invest in attractive opportunities as the economic cycle progresses, supporting further growth in FUM and earnings.
Summary
Airlie Funds Management
30 Sept 2025
$22.75
- Charter Hall Group experienced a 19% increase in share price during the quarter.
- The rally was driven by optimism that interest rates have peaked.
- Strong FY26 EPS guidance contributed to positive market sentiment.
- There was positive momentum from new fund launches and mandate wins.
- Airlie Funds Management has reduced their position size in response to the share price strength.
Summary
Pendal Group
30 Sept 2025
$22.75
- Pendal Group maintains an overweight position in Charter Hall Group (CHC, +16.0%).
- CHC achieved a solid 7% improvement in earnings despite a flat fund management result.
- Property funds under management (FUM) increased modestly by $0.4bn half-on-half to $66.8bn.
- CHC remained a net divestor of assets in the second half of FY25.
- Key contributors to earnings improvement include higher property earnings, good cost control, and lower taxes.
- CHC is positioned for growth in FY26, with expectations of higher property earnings, lower debt costs, and increased funds management earnings.
- Net equity inflows for FY26 have been strong at approximately $3bn, exceeding total inflows for FY24/25 combined.
- This growth is attributed to the launch of a new wholesale retail fund and a Challenger mandate win.
Summary
First Sentier Investors
4 Aug 2025
$20.02
- First Sentier Investors continues to hold a positive outlook on Charter Hall.
- David Harrison has effectively led the company over a long period.
- The stock is currently valued at a PE of 20.
- Projected high single-digit to early double-digit EPS growth.
- Funds Under Management (FUM) expected to grow from $70 billion to $100 billion by the end of the decade.
- Charter Hall offers attractive growth potential.
- The business is well-diversified.
Summary
Blackwattle Investment Partners
30 June 2025
$19.19
- Charter Hall (CHC) was a standout performer, aided by surprise index inclusion and disciplined cost control.
- Resilient performance fees in a challenging real estate environment further support its position.
- Charter Hall boasts a scalable funds management platform, one of the largest in Australia, appealing to sovereign wealth funds seeking real estate exposure.
- With 73% of revenue recurring, its income is underpinned by long-term leases across various sectors, including industrial, office, and social infrastructure.
- As the RBA is poised to reduce interest rates, Charter Hall is seen as well-positioned for a potential recovery in transaction volumes and real estate markets.
Summary
SG Hiscock & Company
30 June 2025
$19.19
- Charter Hall Group (CHC) is recognized as Australia’s largest property fund manager.
- CHC significantly contributed to the fund's performance in the June quarter.
- Over decades, CHC’s focus on tier one assets has fostered a loyal client base of investors and tenants.
- The property sector faces challenges, including vacancy pressures in the office sector due to post-pandemic work-from-home trends.
- Higher interest rates are impacting borrowing costs and property valuations.
- Despite challenges, CHC’s higher quality office assets maintain high occupancy rates, demonstrating their appeal.
- These assets boast strong energy-saving credentials, prime locations, and modern amenities.
- With $70bn of assets, CHC is expected to continue its strategy of acquiring high-quality properties and developments.
Summary
Pendal Group
30 June 2025
$19.19
- Pendal Group continues to hold an overweight position in Charter Hall Group (CHC, +7.0%).
- Positive commentary and a sell-side research upgrade were noted in early June.
- Charter Hall Group is highly sensitive to falling interest rates, which can enhance property valuations.
- The potential for transaction recovery from recent headwinds is promising.
- There is also potential for improved performance fees on recently-created funds.
Summary
Airlie Funds Management
31 Mar 2025
$16.18
- Charter Hall has shown one of the best results during the reporting season.
- Airlie Funds Management notes that the company has effectively reduced its cost base by approximately 20% during the property downturn.
- This reduction in operating expenses positions Charter Hall well for future operating leverage as the property cycle improves.
- Transaction activity is expected to increase, enhancing Charter Hall's market position.
- Devaluations are no longer a headwind for Funds Under Management (FUM), indicating a positive outlook for the business.
- With anticipated decreases in interest rates, Charter Hall is well positioned for growth.
Summary
Oracle Advisory Group
31 Mar 2025
$16.18
- Oracle Advisory Group updates its investment thesis on Charter Hall Group (CHC).
- Indication of Upturn: Charter Hall reported signs of recovery in the property market, with minor property devaluations.
- Growth in FUM: There is a modest increase in wholesale and listed property Funds Under Management (FUM).
- FY25 Earnings Upgrade: The company upgraded its FY25 operating earnings per share from 79 cents to 81 cents.
- Significant Growth: This upgrade reflects a 6.9% growth over FY24.
- Oracle Advisory Group continues to hold its position based on these positive indicators.
Summary
Oracle Advisory Group
30 Sept 2024
$15.97
- Charter Hall has been a great investment for Oracle Advisory Group.
- Returns for 2023 are 45.4%, 42.3%, and 26.2% respectively.
- FY24 results showed a decline in Funds Management EBITDA but stock surged by 15.79% on result day.
- First growth guidance in Operating EPS since FY22 at 79 cents for FY25 versus 75.8 cents for FY24.
- CHC is viewed as a classic value investment, averaged in at cyclical low prices.
- Current weight in the name is 5.6%.
- One of the best performing stocks on ASX-100 this year with total return of 32.4% YTD and 68% over the last year.
- Best performing stock in the ASX-100 this quarter.
Summary
Spheria Asset Management
30 Sept 2024
$15.97
- Charter Hall Group’s (CHC.ASX) share price rose 10% during the month.
- Strong performance was noted following the release of FY24 results with FY25 guidance exceeding market forecasts.
- CHC-managed fund CQR and capital partner Hostplus made a bid for Hotel Property Investments (HPI).
- The bid for HPI represents a 10% discount to NTA and is considered unlikely to succeed.
- Success would only result in a +1.5% increase in CHC’s funds under management.
- The bid could indicate an inflection point in the challenging real estate fundraising environment.
- A 50bps reduction in interest rates by the US Federal Reserve further supports positive sentiment.
- While CHC is up over 70% in the past year, it is valued at 14x EBIT with minimal debt.
- CHC is viewed as relatively attractive given the fund’s underweight position in the real estate sub-sector.
Summary
Endeavor Asset Management
31 Aug 2024
$14.66
- Endeavor Asset Management bought Charter Hall Group (CHC) in July alongside another real estate business.
- They believe expectations for the broader property market, especially office real estate, are overly pessimistic as interest rates stabilize or decline.
- CHC demonstrated astrong triple positive result: FY24 EPS above guidance and consensus.
- They upgraded FY25 DPS guidance and provided better than expected FY25 EPS guidance of circa79cps, implying~4.2% growth YoY.
- The share price rose14.3% in August due to the results and potential inclusion in the EPRA NAREIT Index.
- Endeavor Asset Management sold into the short-term share price boost.
- They continue to monitor the valuation closely and might re-enter at a more compelling valuation.
Summary
Endeavor Asset Management
31 July 2024
$12.68
- Endeavor Asset Management has initiated a new position in Charter Hall Group (CHC)
- The fund manager has been significantly underweight in real estate exposure within the Growth Equities Portfolio
- Current share prices in the sector reflect a significant downturn, with CHC down 48% from the high in 2022
- Endeavor Asset Management believes the outlook for CHC is more optimistic than current valuations indicate
- CHC is regarded as a best-in-class property funds management business
- The fund manager expects earnings to be more resilient than what the market has priced in
Summary
Airlie Funds Management
30 June 2024
$11.27
- Charter Hall Group (ASX: CHC) experienced a decline despite improvements in the office market with transactions reflecting better valuations.
- Near-term headwinds arise from higher interest rates following the May inflation print, impacting AUM growth.
- Devaluations and reduced transaction activity are observed as buyers and sellers await clarity on interest rate peaks.
- Uncertainty exists regarding the duration for these factors to resolve.
- Airlie Funds Management believes Charter Hall is fundamentally cheap at 14.9x FY24 EPS guidance, compared to a historical average of ~17x.
- FY24 is expected to represent trough earnings, primarily from recurring fee streams with minimal transaction and performance fees.
- Although there are concerns about the office sector, it constitutes only ~33% of Charter Hall's overall FUM, with significant allocations to Industrial and Logistics (~31%), Retail (~13%), Listed Equities (~19%), and Social Infrastructure (~4%).
Summary
Airlie Funds Management
31 Dec 2023
$11.81
- Airlie Funds Management emphasizes the importance of Business Quality in their investment process, defining high-quality businesses as those that earn decent returns on capital.
- Despite the REIT sector being perceived as low total return, Charter Hall Group (CHC) has achieved a total return of ~11.5% p.a. since its IPO in 2006, primarily due to its transition to a fund manager.
- Current market conditions raise concerns about office investments, but Airlie Funds Management believes risks are reflected in CHC’s pricing, presenting an opportunity for investment.
- CHC's exposure to the Office sector is mitigated as approximately two-thirds of its Funds Under Management (FUM) are in non-office sectors such as Industrial, Logistics, and Retail.
- The principle of location remains vital; CHC's portfolio consists of newer, well-located buildings, achieving superior occupancy rates.
- High interest rates have pressured CHC's asset values and transaction activity; however, Airlie Funds Management believes interest rates may have peaked, potentially reviving transactions and mitigating devaluations.
- CHC trades at a discount (~15x FY24 EPS) compared to the ASX 200 (~22x), despite a strong track record of EPS growth at 15.1% p.a. over the last decade.
- Key factors contributing to CHC’s business quality include high revenue recurrence (~73%), sticky FUM, and a strong balance sheet with minimal debt.
- CHC's funds management margins have grown to 73%, indicating scalability and a stable earnings stream even without performance fees.
- Despite rising margins and proven earnings growth, CHC’s valuation remains attractive, trading at ~14x forward EPS, suggesting potential for a re-rating if market conditions stabilize.
Summary
Airlie Funds Management
30 Sept 2023
$9.55
- Airlie Funds Management continues to add to their Charter Hall Group (CHC) position due to its underperformance in the REIT sector.
- CHC is facing near-term headwinds to AUM growth from rising interest rates, leading to devaluations and reduced transaction activity.
- There is uncertainty regarding the duration of these challenges.
- CHC is considered fundamentally cheap at 12.6x FY24 EPS guidance compared to a historical average of ~17x.
- FY24 is viewed as a trough earnings period, primarily reflecting recurring fee streams with minimal transaction and performance fees.
- Despite concerns in the Office sector, it comprises only ~34% of CHC’s overall FUM; the rest is diversified across Industrial and Logistics (~28%), Retail (~16%), Listed Equities (~18%), and Social Infrastructure (~4%).
- CHC’s Office Portfolio boasts high-quality tenants with a 96% occupancy and an 89% retention rate on new leasing transactions in FY23.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With Charter Hall Group's shares seemingly oversold, the potential for resilience in earnings could redefine its valuation narrative, making it a compelling entry point for investors willing to look beyond the current market pessimism."
Last Updated: 24 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Charter Hall Group (ASX:CHC)?
Fund managers including Endeavor Asset Management, Spheria Asset Management, Oracle Advisory Group, Airlie Funds Management, SG Hiscock & Company, Pendal Group, Blackwattle Investment Partners, First Sentier Investors and Wilson Asset Management have invested in Charter Hall Group (ASX:CHC).
Why do fund managers invest in Charter Hall Group?
Fund managers are investing in Charter Hall Group due to its strong position as a leading property funds management business. Despite a significant decline in share prices, fund managers believe the current valuations do not reflect the company's resilient earnings potential and optimistic outlook, especially in a sector that has already priced in substantial downturns.
What happened to Charter Hall Group (ASX:CHC)?
Fund managers are investing in Charter Hall Group due to its strong earnings growth potential, driven by effective management and a diversified business model. With expected EPS growth in the high single to double digits and significant increases in funds under management (FUM) projected to rise from $70 billion to $100 billion by the end of the decade, Charter Hall is positioned for solid financial performance. Recent reports highlight improved earnings, cost control, and strong net equity inflows, reflecting confidence in the company's ability to capitalize on new fund launches and market opportunities. Additionally, management's incentive to enhance share price further supports the outlook for sustained growth.