Charter Hall Retail REIT posts $214m full-year profit
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The news: Charter Hall Retail REIT has reported full-year statutory profit of $213.8 million, up from $17.2 million in the previous year, following its takeover of Hotel Property Investments with wholesale partner Hostplus.
The numbers: The full-year statutory profit result was behind market estimates of $222.1 million, according to Visible Alpha data.
Operating earnings for the financial year came in at $147.5 million, 7.2% lower than the $159 million reported in FY24. This was higher than the market consensus estimate of $132.4 million.
Net tangible assets per unit increased by 2.9% to $4.64.
The company posted distributions per unit of 24.7 cents per unit, the same as the previous corresponding period. The market consensus estimate was also 24.7 cents per share.
Charter Hall Retail is guiding FY26 operating earnings of about 26.3 cents per unit and FY26 distributions of 25.4 cents per unit, an increase of 3.5% and 2.8% respectively. It will move to quarterly distributions from the first quarter of FY26.
The context: The listed fund said its joint acquisition of Hotel Property Investments with wholesale capital partner Hostplus has "materially enhanced the portfolio's income growth profile" and is already paying dividends with a 4.9% valuation uplift on its original equity investment of $367.5 million.
The acquisition added "exposure to a diversified $1.3 billion portfolio of 57 pub and accommodation assets".
Charter Hall Retail CEO Ben Ellis said the fund's 5.5% rent growth for speciality tenancy renewals, supported by 4.9% improvement on retained tenants and 7.6% increase in leases signed from new tenants, were the "highest we have experienced in over a decade".
