Charter Hall Retail (CQR) H1 2026 earnings summary

Executive summary

• Achieved record portfolio occupancy of 99.1% and specialty tenant retention rate of 88% for the half year ended 31 December 2025.

• $4.6bn diversified convenience retail portfolio with a WALE of 7.1 years, split 51% shopping centres and 49% net lease assets.

• Statutory profit for the half year ended 31 December 2025 was $240.7 million, up from $105.7 million year-over-year, driven by higher net property income and significant revaluation gains.

• Portfolio curation and strategic acquisitions, including $435m investment in CCRF and 100% acquisition of four Bunnings assets, drove a 28.5% increase in like-for-like capital values since 2020.

• Net tangible assets (NTA) per unit increased by 5.8% to $4.91, driven by rent growth and valuation uplift.

Financial highlights

• Operating earnings for the half were $75.6 million, or 13.0 cents per unit, up 3.4% year-over-year.

• Distribution per unit rose to 12.8 cents, a 4.1% increase, with a payout ratio of 98.4%.

• Statutory profit surged 127.7% to $240.7 million, reflecting significant revaluation gains.

• Like-for-like shopping centre NPI growth was 3.1%; net lease retail NPI growth was 2.7%.

• Portfolio cap rate as of 31 December 2025 was 5.55%.

Outlook and guidance

• FY26 operating earnings guidance of no less than 26.4 cents per unit (+4.0% over FY25).

• FY26 distribution per unit guidance of no less than 25.5 cents (+3.3% over FY25), representing a 6.6% yield.

• Portfolio curation to maintain a 50% shopping centre and 50% net lease mix.

• Positive momentum expected to continue, supported by strong tenant demand, limited new supply, and population growth.

• The REIT is monitoring potential impacts from capital and property market volatility, interest rate movements, and property valuation changes.