Charter Hall Retail (CQR) H1 2026 earnings summary

Executive summary

• Portfolio occupancy reached 99.1% with a specialty tenant retention rate of 88% and a WALE of 7.1 years; portfolio split is approximately 50% shopping centres and 50% net lease assets.

• Statutory profit for the half year ended 31 December 2025 was $240.7 million, up 127.7% year-over-year, driven by higher net property income and significant revaluation gains.

• Operating earnings for the half were $75.6 million (13.0 cpu), up 3.4% year-over-year, reflecting stable portfolio performance and accretive transactions.

• Net Tangible Assets per unit increased 5.8% to $4.91, driven by rent growth and valuation uplift.

• Strategic acquisitions and divestments included a $435 million investment in CCRF, acquisition of four Bunnings assets, and divestment of Mareeba Square and Lansell Square.

Financial highlights

• Operating earnings for 1H FY26 were $75.6 million, or 13.0 cpu, up 3.4% year-over-year.

• Distribution per unit rose to 12.8 cpu, a 4.1% increase, with a payout ratio of 98.4%.

• Statutory profit surged to $240.7 million, reflecting significant revaluation gains.

• Like-for-like shopping centre NPI growth was 3.1%; net lease retail NPI growth was 2.7%; total MAT growth was 2.9%.

• Portfolio cap rate as of 31 December 2025 was 5.55%.

Outlook and guidance

• FY26 operating earnings guidance reaffirmed at no less than 26.4 cpu (+4.0% over FY25); distributions per unit expected at no less than 25.5 cpu (+3.3%), representing a 6.6% yield.

• Positive momentum expected to continue, supported by strong tenant demand, limited new supply, and population growth.

• Portfolio curation to maintain a 50/50 split between shopping centres and net lease assets.

• The REIT is monitoring potential impacts from capital and property market volatility, interest rate movements, and property valuation changes.