Corporate Overview
Charter Hall is listed on the Australian Securities Exchange and trades under the ticker code ASX:CHC.
With over 34 years’ experience, Charter Hall is Australia’s leading fully integrated diversified property investment and funds management group. We use our expertise to access, deploy, manage, and invest equity across our core property sectors – Office, Retail, Industrial & Logistics, Social Infrastructure and Living.
Operating with prudence, we have carefully curated an A$83.4bn diverse portfolio, comprising A$66.4bn of property FUM with over 1,500 high-quality, long-leased properties to more than 4,400 tenants.
Partnership and financial discipline are at the heart of our approach. Our balance sheet capital is primarily invested alongside our investors, and underpinning our focus on mutual success, we have more than A$2.7bn co-invested in our funds and partnerships.
We take a long-term view, combining insight and inventiveness to unlock hidden value for our customers and communities. Our A$13.3bn pipeline of develop-to-core projects delivers sustainable, technologically enabled, future-proofed assets that attract key customers and high-quality, long-term leases, ultimately delivering superior returns for our funds and partnerships.
The impacts of what we do are far-reaching. From helping businesses succeed by supporting their evolving workplace needs, to providing investors with superior returns, we’re powered by the drive to go further.
Note: Figures as of 31 December 2024 unless otherwise stated.
Strategic corporate development
Charter Hall actively seeks out opportunities to strategically grow its business across Australia, with a strong emphasis on diversification through new funds, capital partners, tenant customers, asset acquisitions and our develop-to-core pipeline across all property sectors.
Through diversification of capital sources, we have built resilience into our business model, supported by a high-quality team focused on delivering outstanding results. Our strategic focus remains on investment funds and partnerships characterised by long WALE, high occupancy, and annual rent reviews, which deliver real income growth to our investors. Our development pipeline enables us to add value to existing assets while developing new high-quality, sustainable assets within our funds and partnerships.
Investment principles & strategy
Charter Hall is a fully integrated property investment management platform with expertise across investment management, property and asset management, transaction, leasing and development.
We are a leading owner and manager of long WALE assets that are predominantly leased to corporate and government tenants on long-term leases. Our focus on quality, well-located assets, with strong sustainability credentials and long-term leases, together with our ability to unlock hidden value, creates a balance between stability, returns and growth.
Our development pipeline enables us to add value to existing assets while creating new product within our funds to limit the need for buying assets in a competitive on-market environment.
Our extensive market presence enables us to provide cross-sector solutions to tenant customers. More than 71% of our tenant customers lease multiple tenancies from us, reflecting the value they find in our offerings.
Our leading market share in transactions, combined with our dedicated teams in each major metropolitan market, provides invaluable insight into local property markets. Over the past five years, we have undertaken A$39.2bn in gross transactions, driven by the collaborative efforts of our investment management, transaction, property services and support teams, who together curate our portfolios for the benefit of our funds and partnerships.
A key competitive advantage is our unparalleled access to off-market deals, completing approximately 50% of all transactions in the last 5 years off-market. We also leverage our skills and relationships to partner with major corporate and government entities on sale and leaseback transactions. We have undertaken more than A$11bn in sale and leaseback transactions in the past 10 years, securing our position as the leader in the long WALE triple net lease sector.
Note: Figures as of 31 December 2024 unless otherwise stated.
Sector forecasts
Office
Capital markets and a broad range of signals affirm the Prime office sector is rotating towards the next cycle of growth. Many indicators are at their strongest position since the onset of the inflation cycle: vacancy has fallen to the lowest level and effective rents have increased at their fastest pace.
Prime occupied stock growth accelerated over the 12-months, increasing by 433,000 sqm – the largest since June 2022. National CBD effective rental growth increased by 4.6% y/y. The strongest result since December 2018.
In addition, higher cost of capital and construction challenges continue to reduce forward supply activity. From an initial 5.9 million sqm of mooted/proposed developments, only 1.7 million are expected to be delivered nationally over the next five years.
Industrial & Logistics
The Industrial & Logistics sector continues to benefit from longer-term structural drivers of growth, alongside a strong outlook for consumption and infrastructural development. The demand for modern, high-quality assets in premium locations is intensifying, driven by the ongoing evolution of online retailing, the importance of resilient supply chains, higher transportation costs, increased prevalence of automation and heightened ESG requirements.
New supply is forecasted to reach 2.2 million sqm in CY25, down 28% y/y, with many development projects pushed back into CY26 or not going ahead without a pre-commitment. Construction and financing costs remain high, with feasibility of many developments continuing to be impacted. Demand remains high for modern, high-quality assets, with 47% of the CY25 supply pre-committed as at 1Q25 (expected to increase to ~80% in line with CY24).
The national vacancy rate is expected to continue to drift upward as conditions continue to normalise. However, this could be gradual given the challenging construction environment. Prime industrial rental growth continues to moderate, although remaining above long-term averages. This is driven by the sustained demand/supply imbalance.
Retail
Non-discretionary and convenience retailing growth have continued to be significant, driven by material growth in the population, inbound migration and international students. These formulate strong fundamentals of supermarket and other convenience-focused retailing.
High construction costs and limited development stock have reduced forward supply. Vacancy rates are expected to continue to trend down over the short and medium term, given the improving consumer environment, solid population growth and chronic undersupply of retail space.
Rental growth is expected to improve over coming quarters for non-CBD retail centres, underpinned by the high pressure of construction costs, solid retail sales growth, limited supply and expected downward trend in vacancy.
Living
High construction and financing costs, labour shortages, and a restrictive planning system are contributing to an undersupply of new housing. Current forecasts anticipate the National Housing Accord target of 1.2 million new homes will be missed by one third or more (~395,000 to 462,000 dwelling shortfall).
The apartment sector will be increasingly critical to support a ramp up in housing supply. However, the recovery of higher-density housing will take longer due to the lag between approvals and completions.
Social Infrastructure
Assets, such as childcare centres, senior housing, student accommodation, government premises and medical/health facilities, are becoming an increasingly attractive sector for investors. Essential by nature, these sectors continue to benefit from strong demand fundamentals.
Important Information This information has been prepared by Charter Hall Funds Management Limited (ACN 082 991 786) (together, with its related bodies corporate, the Charter Hall Group). This information has been prepared without reference to your particular investment objectives, financial situation or needs and does not purport to contain all the information that a prospective investor may require in evaluating a possible investment. Prospective investors should conduct their own independent review, investigations and analysis of the information contained in or referred to in this publication and the further due diligence information provided. It is not an offer of securities or advice. Any forecast or other forward-looking statement contained in this information may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Charter Hall Group is not responsible for providing updated information to any prospective investors.
Compliance statement
This information has been prepared by Charter Hall Funds Management Limited (ACN 082 991 786) (together, with its related bodies corporate, the Charter Hall Group). This information has been prepared without reference to your particular investment objectives, financial situation or needs and does not purport to contain all the information that a prospective investor may require in evaluating a possible investment. Prospective investors should conduct their own independent review, investigations and analysis of the information contained in or referred to in this publication and the further due diligence information provided. It is not an offer of securities or advice. Any forecast or other forwardlooking statement contained in this information may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Charter Hall Group is not responsible for providing updated information to any prospective investors.
