Charter Hall Social Infrastructure (CQE) H2 2025 earnings summary

Executive summary

• Operating earnings reached AUD 15.3 per unit, with distributions of AUD 15.2 per unit, matching upgraded FY25 guidance and reflecting resilient income from a diversified social infrastructure portfolio.

• NTA per unit increased 1% year-over-year to AUD 3.86, supported by independent valuations and active portfolio curation.

• Completed AUD 144m in accretive acquisitions at a 6.7% yield, including a Perth pathology lab (AUD 47m), a 22.5% stake in Western Sydney University campus (AUD 68m), and an increased interest in Geoscience Australia facility (AUD 28.7m).

• Divested AUD 151m in early learning properties at an 8.3% premium to carrying value and a 4.4% yield.

• Portfolio comprises 328 properties, 100% occupancy, and a WALE of 11.6 years, with only 3.5% of lease income expiring in the next 5 years.

Financial highlights

• Operating earnings totaled AUD 57m, or AUD 15.3 per unit, with like-for-like net property income up 3.3% year-over-year.

• Statutory earnings rose to AUD 71m from a loss of AUD 19.6m in FY24, driven by positive fair value movements.

• Distribution payout ratio was 99%.

• Portfolio revaluations delivered a net uplift of AUD 28m (1.4%).

• NTA per unit rose to AUD 3.86, up AUD 0.04 from June 2024.

Outlook and guidance

• FY26 distribution guidance is AUD 16.8 per unit, up 10.5% from FY25, supported by positive industry and demographic trends.

• Growth driven by positive yield spread, market rent reviews, and reduced cost of debt.

• Payout ratio expected to remain in the 98%-100% range.

• Strategy remains focused on active management and portfolio curation to deliver essential community services.