Charter Hall Group unveils 42.28c per security capital reallocation

Charter Hall Group announces a 42.28 cents per security capital reallocation, with adjusted cost base and no cash payment to investors.

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Key points

  • Charter Hall Group announced a capital reallocation of 42.28 cents per security, including an 11.61 cent return of capital and a 30.67 cent special fully franked dividend, without cash transactions for holders.
  • This reallocation involves no cash payments or security issuance/cancellation, but adjusts the cost base for each security, potentially affecting future tax obligations for securityholders.
  • The capital reallocation supports Charter Hall's capital management strategy, with investors awaiting an ATO ruling to confirm the tax implications, while key documents are available for investor guidance.

The Charter Hall Group (ASX: CHC) share price is in focus after the company announced a capital reallocation of 42.28 cents per security, following securityholder approval at its November AGM. Key features include a return of capital and a special fully franked dividend, with no cash changing hands for investors.

What did Charter Hall Group report?

  • Capital reallocation of 42.28 cents per stapled security approved and set for 18 December 2025
  • Return of capital of 11.61 cents per Charter Hall Limited (CHL) share
  • Special fully franked dividend of 30.67 cents per CHL share (franking credit: 13.14 cents)
  • No cash payment or issue/cancellation of securities for securityholders
  • ATO draft class ruling obtained; formal ruling expected within six weeks

What else do investors need to know?

Securityholders will not receive any cash from the capital reallocation. Instead, the capital will shift from Charter Hall Limited to Charter Hall Property Trust, automatically adjusting the cost base for each security. This may have future tax implications for investors.

The capital reallocation is scheduled for 18 December 2025, with the record date on 17 December 2025. Confirmation letters and statements will be sent out to investors on or about 9 January 2026.

What's next for Charter Hall Group?

Charter Hall expects the capital reallocation to support the group's ongoing capital management strategy, enhancing transparency and cost base alignment for investors. The company awaits the final ATO class ruling to confirm the tax treatment for securityholders.

Management says key documents, including the AGM Notice, Explanatory Memorandum, and tax ruling, will be available on the company's website to support investor understanding.

Charter Hall Group share price snapshot

Over the past 12 months, Charter Hall Group shares have climbed 67%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen around 2% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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