S&P/ASX 200 Index (ASX: XJO) real estate investment trust (REIT) Charter Hall Social Infrastructure REIT (ASX: CQE) has seen some sizeable share price swings over the past year.
Both higher and lower.
But, as you can see in the chart below, CQE – which invests in childcare centres, healthcare facilities, and transport hubs – has enjoyed a strong rebound in 2025.
At yesterday's closing price of $2.88, shares are up 9.92% from this time last year.
The ASX 200 REIT also has a long track record as a reliable passive income stock. And unlike the majority of ASX 200 stocks, which pay dividends twice per year, the Charter Hall Social Infrastructure REIT pays dividends quarterly.
Over the past 12 months, CQE has paid out a total of 15.6 cents a share in unfranked dividends.
At Monday's closing price, that equates to a trailing dividend yield of 5.4%.
And according to Daylight Financial Group's Elio D'Amato, there's a lot of potential upside ahead for CQE in 2025 (courtesy of The Bull).
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Tailwinds ahead for this ASX 200 REIT
"CQE invests in social infrastructure properties within Australia," said D'Amato, who has a buy recommendation on the ASX 200 REIT. "Following its first half result in fiscal year 2025 and recent share price bounce, CQE is trading at a hefty discount to net tangible assets."
Commenting on the REIT's results for the six months to 31 December, D'Amato said:
It has a conservative balance sheet, with no debt maturing until July 2027. Occupancy remains at 100%. The company divested $84 million in childcare properties at an 8.6% premium to book value, while reducing childcare exposure from 77% to 74%.
Investing $47 million in a healthcare facility provides more portfolio diversity.
The ASX 200 REIT also has some built-in buffers against the earnings-eroding powers of inflation.
"Market rent reviews on 60 properties in fiscal year 2025 provides potential for rental growth," D'Amato explained.
As for those juicy dividends, D'Amato said, "Management increased distribution guidance, implying a 5.5% forecast yield. A buy-back of up to $25 million adds further upside to sentiment."
What's happening with the Charter Hall Social Infrastructure REIT?
The CQE share price closed up 8.5% on 11 February, the day the company reported its half-year results.
The ASX 200 REIT holds a $2.1 billion property portfolio with a long weighted average lease expiry (WALE) of 11.9 years and 100% occupancy. And 43% of CQE's rental income will be subject to market rent reviews in the next four years.
As for that boosted dividend guidance, management increased the full-year FY 2025 payout forecast to 15.2 cents a share, up from the prior guidance of 15.0 cents a share.
