Charter Hall Social Infrastructure (CQE) H1 2025 earnings summary

Executive summary

• Operating earnings for the half-year ended 31 December 2024 were AUD 28.5 million (0.076 per unit), with distributions of AUD 28.0 million (0.075 per unit), in line with guidance.

• NTA per unit remained stable at AUD 3.82, reflecting portfolio resilience.

• Statutory profit for the half year was AUD 31.0 million, a turnaround from a AUD 10.9 million loss in the prior period.

• Portfolio comprises 347 properties, 100% occupancy, and an 11.9-year WALE, valued at AUD 2.1 billion.

• Completed AUD 47 million life sciences acquisition and AUD 84 million in divestments at an 8.6% premium to book value.

Financial highlights

• Like-for-like net property income grew 3.2% year-over-year, partially offset by net divestments.

• Net property revaluation uplift of AUD 6.4 million from independent valuations covering 59% of the portfolio.

• Statutory earnings for 1H FY25 were AUD 31.0 million, up from a loss in 1H FY24, driven by positive fair value movements.

• Total revenue for the half year was AUD 59.8 million, up from AUD 58.9 million year-over-year.

• Finance costs increased due to higher average debt costs, though partially offset by lower drawn debt.

Outlook and guidance

• FY25 distribution guidance increased from AUD 0.15 to AUD 0.152 per unit, driven by positive yield spread and market review outcomes.

• AUD 25 million unit buyback announced to capitalize on price discount to NTA.

• Social infrastructure remains a growth sector, supported by demographic trends and government funding.