Charter Hall Retail (CQR) H2 2025 earnings summary

Executive summary

• Portfolio value reached $4.8 billion as of June 30, 2025, following the acquisition of the HPI portfolio, which added 57 net leased assets and enhanced diversification.

• Portfolio occupancy remained high at 98.9%, with a 7.0-year WALE and record specialty sales productivity.

• Operating earnings per security/unit were $25.04–25.4 cents, with distributions of $24.07–24.7 cents, both in line with guidance.

• Strategic acquisitions, divestments, and the launch of CCRF generated a $294 million net capital return and reduced gearing.

• Achieved Net Zero for Scope 1 and 2 emissions from July 2025, supported by solar and renewable energy initiatives.

Financial highlights

• Net tangible assets (NTA) per unit increased by 2.9% to $4.64, driven by $151 million net valuation growth.

• Like-for-like net property income grew 2.6% year-over-year; shopping centre NPI up 2.4%, net lease retail NPI up 3.1%.

• Operating earnings of $0.2504–0.254 per unit and distribution of $0.2407–0.247 per unit, matching guidance.

• Weighted average cost of debt increased from 4.4% to 4.9% for FY25.

• 99% of the portfolio externally revalued in FY25, with a 2.9% uplift in shopping centres and 3.9% in net lease retail.

Outlook and guidance

• FY26 operating earnings guidance is 26.03–26.3 cents per unit, up 3.5% year-over-year; distributions forecast at 25.04–25.4 cents, up 2.8%.

• Quarterly distributions to commence from Q1 FY26.

• Strong population growth, limited new supply, and robust investor demand expected to support asset performance and valuation growth.