Charter Hall Retail REIT (ASX:CQR) Releases 2025 Half Year Results
Financial Performance
Charter Hall Retail REIT reported operating earnings of $73.1 million for the first half of 2025, a 7.0% decrease from $78.6 million in the previous period. Operating earnings per unit declined by 7.0% to 12.6 cents, while distributions per unit remained steady at 12.3 cents. Net tangible assets per unit increased by 1.3% to $4.57. The portfolio valuation grew by 1.9%, with a net tangible asset (NTA) increase of 1.3% for the six-month period.
Operational Performance
The REIT maintained a high portfolio occupancy rate of 98.7%, reflecting strong portfolio quality. Total MAT growth was 3.4%, and convenience net lease retail represented 35% of the total portfolio value, projected to increase to 39% following the acquisition of Hotel Property Investments (HPI). The acquisition of HPI, valued at $356 million with an 85.4% ownership stake, is expected to drive superior income growth through a strong rent review structure.
Portfolio Highlights
The convenience shopping centre retail portfolio remains 100% occupied with significant growth in net property income (NPI). Valuation growth was supported by acquisitions, including Glebe Hill Village in Hobart and Ampol Marsden Park in NSW, enhancing the portfolio’s overall value and income potential. The REIT continued active asset management and divested non-core assets to improve portfolio quality and manage gearing.
Outlook and Guidance
Charter Hall Retail REIT expects FY25 operating earnings to be approximately 25.4 cents per unit. Distributions per unit are projected to remain in line with FY24 at 24.7 cents per unit, representing a distribution yield of 7.5%. The REIT remains focused on non-discretionary convenience retail, aiming for resilient income growth through portfolio curation and strategic acquisitions.
ESG Leadership
The REIT achieved Net Zero status from 1 July 2025 through on-site solar generation and off-site renewable electricity. ESG initiatives included a 5% uplift in waste diversion from landfill and significant investments in clean technology. Charter Hall Retail REIT was ranked 2nd in Australia and New Zealand for listed retail entities in the 2024 GRESB Report and maintained an A level Public Disclosure rating.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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