Charter Hall Social Infrastructure (CQE) H2 2025 earnings summary

Executive summary

• Operating earnings reached AUD 57.0 million (15.3 cents per unit), with distributions of 15.2 cents per unit, matching upgraded FY25 guidance and reflecting resilient income from a diversified social infrastructure portfolio.

• NTA per unit increased 1.0% year-over-year to AUD 3.86, supported by independent valuations and active portfolio curation.

• Major acquisitions totaled AUD 144 million, 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 30 early learning properties for AUD 151 million at an 8.3% premium to carrying value and a 4.4% yield, optimizing the portfolio.

• Portfolio comprises 328 properties valued at AUD 2.1 billion, 100% occupancy, and a WALE of 11.6 years.

Financial highlights

• Operating earnings totaled AUD 57.0 million, with like-for-like net property income growth of 3.3% year-over-year.

• Statutory profit rose to AUD 71.0 million, reversing a prior year loss, driven by positive fair value movements.

• NTA per unit rose to AUD 3.86, up from AUD 3.82 at June 2024.

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

• Distribution payout ratio was 99%.

Outlook and guidance

• FY26 distribution guidance is 16.8 cents per unit, up 10.5% from FY25.

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

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

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

• Quarterly distributions to continue.