Charter Hall Retail (CQR) investor relations material

Executive summary

• FY 2026 delivered strong results, with operating earnings per unit up 4% year-over-year to 26.4 cents and statutory profit of $389.4 million, supported by a $5.3bn diversified convenience retail portfolio and 99.1% occupancy.

• Net Tangible Assets (NTA) per unit rose 8.4% to $5.03, driven by a $248 million net valuation uplift.

• Portfolio transformation to a 50/50 mix of high-quality shopping centers and net lease assets has enhanced income growth, resilience, and diversification.

• Record occupancy of 99.1% and sector-leading tenant covenants underpin earnings resilience, with specialty tenant retention at 86%.

• Strategic capital recycling, acquisitions, and expansion in the Charter Hall Ampol Partnership drove value creation.

Financial highlights

• Operating earnings per unit reached AUD 0.264 (26.4 cents), up 4% from FY 2025; distributions per unit were AUD 0.255 (25.5 cents), up 3.3%.

• NTA per unit increased 8.4% to AUD 5.03, driven by net valuation uplift of AUD 248 million (4.9%).

• Total net property income grew 10.5% to $278.5 million, with same property NPI growth of 3%.

• Statutory earnings surged 78.4% to $389.4 million, reflecting significant revaluation gains.

• Portfolio value grew to AUD 5.3 billion, with a weighted average cap rate of 5.45%.

Outlook and guidance

• FY 2027 operating earnings expected to be no less than AUD 0.273 (27.3 cents) per unit, at least 3.5% growth over FY 2026.

• Distributions per unit for FY 2027 expected to be no less than AUD 0.264 (26.4 cents), also at least 3.5% growth.

• Distribution yield forecast at 6.5% based on closing price of AUD 4.06.

• Guidance does not assume any acquisitions or divestments; upside possible from future capital recycling.

• Continued focus on portfolio quality, tenant retention, and capital efficiency.