Social Infrastructure Assets showing strong valuation growth than other asset class at Charter Hall

Charter Hall have released the results of their June year end valuations for their Long WALE REIT, Retail REIT and Social Infrastructure REIT covering some 2,400 properties.

The results reveal that the Social Infrastructure assets (predominantly Early Leaning Centres) have shown strong valuation growth than the retail or long WALE assets. Charter Hall’s Social Infrastructure assets grew 5.6%, whereas the Retail assets grew 4.5% and the Long WALE assets grew just 2.0%.

Charter Hall’s Social Infrastructure REIT (CQE)

CQE had 361 independent valuations completed, representing 100% of the property portfolio by gross asset value. The valuations resulted in a $101.5 million or 5.6% uplift on the prior book values. The average passing yield on these properties has compressed 20 bps from 4.9% to 4.7%.

The unaudited impact of the valuations announced today represent a $0.28, or 7.4% increase on the
December 2021 NTA per unit of $3.782

Charter Hall’s Long WALE REIT (CLW)

CLW had 529 properties, or 90% of the portfolio by gross asset value independently valued as at
30 June 2022. The valuations resulted in a $137.7 million, or 2.0% uplift on prior book values. The overall portfolio value has increased from $7.0bn to $7.1bn and the portfolio average cap rate has compressed 3bps from 4.38% to 4.35%.

The unaudited impact of the valuations announced today represents an estimated increase in the NTA
per security from $5.89 as at 31 December 2021 to $6.081, reflecting a $0.19 or 3.2% increase

Charter Hall’s Retail REIT (CQR)

CQR had 100% of the portfolio independently valued as at 30 June 2022. The valuations resulted in a $185 million, or 4.5% increase on prior book values inclusive of forecast capital expenditure. The overall portfolio value has increased from $4,010 million to $4,255 million and the portfolio average cap rate has compressed 19bps from 5.39% to 5.20%.

The shopping centre convenience retail portfolio cap rate has compressed 21bps from 5.66% to 5.45%
and the Long WALE convenience retail portfolio cap rate has compressed 5bps from 4.37% to 4.32%.

The unaudited impact of the valuations announced today represent a $0.26, or 5.7% increase on the
December 2021 NTA of $4.54. This excludes movements in working capital, derivatives and FX