Charter Hall Retail (CQR) H1 2025 earnings summary

Executive summary

• Operating earnings for H1 FY25 were $73.1 million, or 12.6 cents per unit, with distributions per unit at 12.3 cents, and statutory profit rebounded to $108.6 million from a prior loss.

• Portfolio occupancy remains high at 98.7%, with specialty sales productivity at $11,278/sqm and strong leasing activity.

• Major acquisitions included an 85.4% stake in Hotel Property Investments (HPI) and 50% of Glebe Hill Village, enhancing diversification and income growth.

• Portfolio curation included the sale of Lake Macquarie Square at a premium and acquisitions of high-performing assets.

• ESG leadership maintained, with net zero carbon target for 2025 and high GRESB/Sustainalytics rankings.

Financial highlights

• Operating earnings per unit were 12.6 cents, with total operating earnings of $73.1 million.

• Distribution per unit was 12.3 cents, payout ratio at 97.8%.

• Statutory profit was $108.6 million, a turnaround from a $42.1 million loss in the prior period.

• Net tangible assets per unit rose 1.3% to $4.57.

• Investment property value increased to $4.5 billion, reflecting acquisitions and valuation uplift.

Outlook and guidance

• FY25 operating earnings guidance reaffirmed at approximately 25.4 cents per unit.

• FY25 distribution per unit forecasted at 24.7 cents, in line with FY24.

• Positive outlook supported by population growth, limited new supply, stabilized cap rates, and inflation-linked rents.