Charter Hall Social Infrastructure (CQE) H2 2026 earnings summary

Executive summary

• Operating earnings per unit rose 13.1% year-over-year to AUD 0.173 (17.3 cents), with distributions per unit up 11.8% to AUD 0.17 (17.0 cents), driven by portfolio curation, accretive acquisitions, and strong rental growth.

• Portfolio value increased 9.6% to AUD 2.3 billion across 295 properties, with a WALE of 11.4 years and 99.7% occupancy.

• Major acquisitions included a 25% interest in Sonic Healthcare pathology lab (AUD 111.2m, 5.6% yield) and a 50% interest in Western Sydney University campus (AUD 152m, 6.5% yield), enhancing sector diversification.

• Early learning property divestments totaled AUD 136.7m–137.8m for 32 assets at a 4.1%–4.4% premium to book value.

Financial highlights

• Operating earnings reached AUD 64.2 million, up 12.6%–13.1% from FY25, exceeding guidance.

• Statutory profit increased to AUD 90.5 million, up 27.5% year-over-year.

• Like-for-like net property income grew 4.2%; total net property income rose 10% to AUD 119.9 million.

• NTA per unit increased 1.8% to AUD 3.93; payout ratio was 98%.

• Net property revaluation uplift of AUD 19.2 million, or 1.0% of portfolio value.

Outlook and guidance

• FY27 guidance: operating earnings per unit no less than AUD 0.181 (18.1 cents), up at least 4.6%; distributions per unit forecast at AUD 0.18 (18.0 cents), up 5.9%.

• Guidance based on contracted transactions, with 68% of rent fixed (typically 3%) and 24% CPI-linked.

• Positive industry and demographic fundamentals expected to support continued growth.