Charter Hall Social Infrastructure REIT posts $71m profit in FY25
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The news: Charter Hall Social Infrastructure REIT (CQE) has posted a swing to statutory profit in financial year 2025, despite a fall in operating earnings, following a significant divestment of early learning assets.
The numbers: CQE’s statutory profit came in at $71 million for financial year 2025, recovering from FY24's loss of $19.6 million. Meanwhile, operating earnings totalled $57 million, a 4.2% dip compared to $59.5 million in FY24.
Distributions of 15.2 cents per unit were paid in FY25. Independent property valuations during FY25 resulted in a net increase of $28 million, a 1.4% increase on June 2024 book values.
Market consensus estimates, according to Visible Alpha, was for profit to come in at $63.7 million and operating earnings to come in at $57.3 million. Analysts had also anticipated dividends of 15.2 cents per unit.
Looking forward, CQE is guiding FY26 distributions of 16.8 cents per unit, which would be 10.5% better than distributions paid in FY25.
The context: Throughout the year, the fund acquired a modern pathology laboratory in Perth, Western Australia for $47 million at an initial yield of 6.4%, a 22.5% interest in a university campus in Parramatta fully leased to Western Sydney University in July 2025 for $68.4 million at an initial yield of 6.2%.
CQE also increased its interest in the Geosciences Australia facility in Canberra by 8.3% to 33.3% for a total consideration of $287 million at an initial yield of 8.4%.
The acquisitions were funded through a divestment of 30 early learning assets for a total consideration of $151.1 million achieving an 8.3% premium to book value and at an average yield of 4.4%.
What they said: “We expect that there will continue to be significant growth opportunities in social infrastructure assets, driven by favourable demographic trends and the essential nature of the industry, including government backing,” the company said in a statement to the exchange.
