Charter Hall Retail achieves $78.6 million

16 February 2024

Today, Charter Hall Retail (ASX:CQR) announced operating earnings of $78.6 million, resulting in distributions per security of 12.3 cents.

The portfolio underwent record high shopping centre occupancy of 98.7%, with positive leasing oof specialty real estate.

Charter Hall Retail’s CEO, Ben Ellis said: “It’s been another very strong period of portfolio performance from CQR with like-for-like net property income growth of 3.7%. The attractive nature of our assets has seen us sell four regional non-core centres for $290 million following unsolicited offers that were in-line with our prevailing book values. That’s provided significant balance sheet capacity for us to continue improving the portfolio and I’m delighted to announce the acquisition today of Eastgate Bondi Junction shopping centre, in partnership with our wholesale capital partner in RP6. 

“This is an outstanding acquisition for CQR, acquiring a premium investment grade convenience retail centre on an attractive 6.1% passing yield. This continues our on-going portfolio curation and further concentrates CQR’s portfolio in major East Coast metropolitan markets. It’s also pleasing to see new incremental wholesale capital investing in convenience retail shopping centres, recognising the attractive nature of this asset class.”

The REIT underwent $290 million of divestments, whilst reinvested took place with acquisition of 49% of Eastgate Bondi Junction shopping centre, NSW, in partnership with RP6.

CQR’s strategy is to be the leading owner of convenience retail property, delivering investors a resilient and growing income stream from convenience retail properties. Portfolio curation and active asset management will continue to enhance the portfolio quality through time.

Positive leasing spreads, high occupancy levels and MAT growth are expected to continue. Portfolio income is expected to benefit from direct and indirect inflation-linked rental growth, which will also underpin asset values. 

Based upon information currently available and barring unforeseen events, CQR reconfirms that it expects FY24 operating earnings to be approximately 27.4 cents per unit.