Charter Hall Retail (CQR) H1 2025 earnings summary

Executive summary

• Operating earnings per security for H1 FY25 were AUD 0.126, with distributions per security at AUD 0.123, matching December 2023 levels.

• Statutory profit for the half year ended 31 December 2024 was $108.6 million, a turnaround from a $42.1 million loss in the prior corresponding period.

• Strong portfolio performance driven by 3% same property MPI growth and 3.4% MAT growth, with shopping center occupancy at 98.7%.

• Acquisition of 85.4% of Hotel Property Investments (HPI) in JV with Hostplus, enhancing portfolio diversification and income growth.

• Portfolio curation included the sale of Lake Macquarie Square and acquisitions such as Glebe Hill Village and several net lease assets.

Financial highlights

• Operating earnings for the half were AUD 73.1 million, or AUD 0.126 per unit, down 7.0% year-over-year.

• Distribution per unit was AUD 0.123, in line with the prior period; payout ratio increased to 97.8%.

• Statutory profit rebounded to $108.6m from a loss of $42.1m in 1H FY24, driven by property revaluations.

• NTA per unit rose 1.3% to AUD 4.57, with a 1.7% uplift in shopping center valuations and 2.3% in net lease retail.

• Investment property value increased to AUD 4.5 billion, reflecting acquisitions and valuation uplift.

Outlook and guidance

• FY25 operating earnings guidance reaffirmed at approximately AUD 0.254 per unit.

• Distributions per unit expected to match FY24 at AUD 0.247, representing a 7.5% yield.

• Positive outlook supported by population growth, limited new supply, stabilized capitalization rates, and inflation-linked rent reviews.

• Directors note that future results may be materially impacted by property valuation changes, interest rate movements, and capital market conditions.