Overview

Corporate Overview

Charter Hall (ASX:CHC) is Australia’s leading fully integrated diversified property investment and funds management group. We use our expertise to access, deploy, manage and invest equity to create value and generate superior returns for our investor customers. We’ve curated a diverse portfolio of high-quality properties across our core sectors – Office, Industrial & Logistics, Retail and Social Infrastructure.

Operating with prudence, we have carefully curated a A$94.3 billion portfolio, comprising A$76.0 billion of property funds under management with over 1,600 high-quality, long-leased properties with more than 5,700 tenant leases, providing consistent income across varying market conditions.

Partnership and financial discipline are at the heart of our approach. Underpinning our focus on mutual success, our balance sheet capital is primarily invested alongside our investors, with more than A$3.2 billion 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$20.4 billion 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 support our customers, people and communities to grow.

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.

Sector forecasts

INDUSTRIAL & LOGISTICS:

Australia’s Industrial & Logistics market is entering a period of resilient, income-led value growth, supported by structurally higher occupier demand and constrained supply.

Annual leasing volumes reached 4.3 million sqm to June 2026, near record highs and 31% above the 10-year average, driven by population growth, e-commerce, automation, digitalisation and supply-chain resilience.

Development feasibility remains challenged by elevated debt and construction costs, planning complexity and limited serviced industrial land. Consequently, CY26 supply is forecast at 2.3 million sqm, 32% below the CY24 peak and 17% below CY25.

National vacancy remains low at 3.2%, with demand concentrated in modern, well-located facilities. Prime face rents increased 3.8% over the year, while transaction volumes reached $15.9 billion, 80% above the 10-year rolling average. Data-centre expansion is also increasing competition for development-ready industrial land.

Following the interest-rate-led repricing, these fundamentals provide a constructive platform for sustainable rental and value growth over the medium term.

OFFICE:

Australia’s office outlook is constructive for modern, high-quality assets in conviction CBD markets.

A pronounced flight to quality is widening the divergence between prime and secondary buildings. Prime occupied stock increased by 188,000 sqm over the year to June 2026, while secondary occupied stock declined by 96,800 sqm. Vacancy is concentrated in older assets, with 94% of CBD vacancy contained within 30% of buildings.

At June 2026, national prime CBD vacancy was 14.4%, compared with 16.9% for secondary assets. Higher capital and construction costs continue to restrict new development, with CY26 expected to record the lowest level of new starts on record. Improving prime demand and limited supply supported 7.3% annual net effective rental growth, above the 10-year average of 3.4%.

Indicative capital values increased 5.7% and Office Specialist Fund total returns reached 7.8%. The recovery should remain concentrated in well-located buildings offering modern amenity, sustainability credentials and workplace experience.

RETAIL:

Australia’s convenience retail sector remains supported by non-discretionary spending, population growth, tenant covenants and constrained supply. CY25 delivered the lowest level of new retail floorspace in approximately 30 years, while CY26 supply is forecast at 424,000 sqm, below the long-term average of 507,000 sqm. Development feasibility remains challenged by elevated replacement costs, financing costs and planning constraints, particularly in inner-metro catchments. Retail vacancy declined to 4.4% at June 2026, its lowest level in eight years, while neighbourhood vacancy was 3.9%. Rental growth improved across all subsectors, led by Large Format Retail at 5.5% annually. Charter Hall’s retail platform recorded 3.7% annual rental growth and 1.0% vacancy. Investment volumes reached $13.5 billion over the year and Core Retail Fund total returns reached 10.2%. Well-located convenience assets remain positioned to outperform, supported by supermarkets, essential services, omni-channel fulfilment and household expenditure on daily needs across superior, supply-constrained catchments over the medium term.

OTHER:

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.

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 69% 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$46.8bn 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$12.0bn in sale and leaseback transactions in the past 10 years, securing our position as the leader in the long WALE triple net lease sector.

Strategic corporate development

Performance verification

As at 30 June 2026, CPOF outperformed the MSCI Core Office Index over the 10-year period. Over 10-year timeframe, CPOF has returned 5.0% p.a. in comparison to the MSCI Core Office Index 4.7% p.a.

As at 30 June 2026, CPIF continues to outperform the 10-year MSCI Core Index benchmark returns by 5.3%, post all fees (CPIF MSCI 10-Year Return 9.9% vs MSCI Core Index of 4.6%).

Charter Hall’s new flagship retail fund, Charter Hall Convenience Retail Fund (CCRF), was launched in August 2025 and achieved inclusion into the MSCI Index from September 2025. Over the 11 months since inception to 30 June 2026, CCRF generated a total return of 11.7%, which is 200bps above the performance of the MSCI Retail index over the same time period.

_{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 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.}

_{Note: Figures as of 30 June 2026 unless otherwise stated.}