Charter Hall shares climb following second FY26 guidance upgrade
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More news: Shares in Charter Hall jumped in afternoon trade after the property investor upgraded its FY26 earnings guidance for the second time this year, while flagging potential upside from the proposed government changes to capital gains tax and negative gearing.
Shares rose 5.28% to $20.35 at 1:39pm AEST.
Charter Hall upgrades guidance, flags upside in federal budget changes
The news: Property investor Charter Hall has announced a further upgrade to its FY26 earnings guidance, with the group also expecting benefits from proposed changes set out in the federal budget.
The numbers: The group increased its operating earnings guidance from 100 cents per security to 103 cents, marking a 26.5% increase on the FY25 result of 81.4 cents. It follows a previous upgrade to guidance announced in February.
Full-year distribution per security guidance remains at 6% growth over FY25.
The context: Charter Hall managing director and group CEO David Harrison said he expects to see benefits from proposed changes to capital gains tax and negative gearing for the residential property sector, outlined in the recent federal budget.
He said he expects the changes could drive a rotation of capital demand towards higher yielding commercial assets from low yielding residential investments, due to lower income returns in residential property and reduced tax benefits from negative gearing.
“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,” he said.
What they said: “Australia continues to attract institutional capital as a stable and highly dependable real asset market,” Harrison said.
“We are seeing increased allocations from existing institutional investors alongside new domestic and offshore inflows seeking diversified exposures.
“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.”
The source: ASX
