Yesterday, Charter Hall Retail REIT (ASX: CQR) held its annual general meeting (AGM) where it discussed its FY25 results, highlighting operating earnings of 25.4 cents per unit and a portfolio occupancy rate of 98.9%.
What did Charter Hall Retail REIT report in FY25?
- Property investment value of $4.8 billion, including the HPI acquisition
- Net Tangible Assets (NTA) per security up 2.9% to $4.64
- FY25 operating earnings of 25.4 cents per unit, in line with guidance
- Distribution of 24.7 cents per unit, matching FY24
- Proforma balance sheet gearing of 27.1%, look-through gearing at 35.0%
- Same property net property income (NPI) growth of 2.6%
What else do investors need to know?
Charter Hall Retail REIT continued to focus on its core convenience retail portfolio, with shopping centres making up 61% and net lease properties 39% of its $4.8 billion portfolio. Major tenants include supermarkets and service stations, supporting resilient rental income streams.
Portfolio curation remains a priority, highlighted by the 100% acquisition of four Bunnings assets for $151 million, expected to settle in March 2026. The business maintained a high weighted average lease expiry of 7.0 years, providing income stability.
What did Charter Hall Retail REIT management say?
Commenting on the company's progress, Ben Ellis, Retail CEO & Fund Manager said:
The FY25 result reflects the strength and resilience of our convenience retail platform, underpinned by long lease terms, quality tenants and active asset management.
What's next for Charter Hall Retail REIT?
Looking ahead, management upgraded guidance for FY26, targeting operating earnings of no less than 26.4 cents per unit and distributions of at least 25.5 cents per unit. This represents expected growth of over 4% in operating earnings and 3.3% in distributions compared to FY25.
The REIT will move to paying distributions quarterly from Q1 FY26 and continues to focus on income growth across its convenience retail portfolio, with limited new supply and ongoing portfolio curation expected to support future growth.
Charter Hall Retail REIT share price snapshot
Over the past year, the Charter Hall Retail REIT shares have risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 8% over the same period.
