Key Highlights

  • Charter Hall Retail REIT will pay 6.6 cents per unit on 27 November 2026 for the September quarter.
  • The distribution is unfranked and paid in cash, as the reinvestment plan does not apply.
  • The payment is one quarter of FY27 distribution guidance of at least 26.4 cents.
  • The amount was confirmed as actual in a later company notice.

Charter Hall Retail REIT (ASX:CQR) will pay a September quarter distribution of 6.6 cents per unit on Friday 27 November 2026, one of the larger REIT payments on the ASX Dividend calendar for the rest of November. The amount was confirmed as actual in an Appendix 3A.1 lodged with the ASX on 18 September 2026. Units went ex-distribution on 29 September and the Record Date was 30 September 2026, so entitlement is already fixed. Four quarterly payments of 6.6 cents would equal the REIT's FY27 distribution guidance of no less than 26.4 cents per unit, which it set out at its Annual General Meeting on 29 October.

Dates and Details of the 27 November Payment

The Appendix 3A.1 sets the distribution at AUD 0.066 per unit for the quarter ending 30 September 2026. The ex date was 29 September, the record date 30 September and the payment date 27 November 2026. The amount is marked as actual rather than estimated.

The distribution is 0 per cent franked, which is usual for an Australian real estate Investment trust that passes rental income through to unitholders. The REIT has a distribution reinvestment plan, but the notice states the plan does not apply to this distribution, so the payment will be made in cash. Holders who bought units on or after 29 September will not receive this payment, because the ex date marks the first day units trade without the entitlement attached, even though the cash arrives about two months later.

The REIT has previously published an attribution managed investment trust notice setting out the tax components of its June quarter distribution, released on 26 August 2026. Investors can expect similar tax information for the September quarter payment, which helps with completing tax returns because unfranked trust distributions can include different taxable and tax-deferred components.

FY27 Guidance and the Quarterly Run-Rate

At the AGM, the REIT gave FY27 guidance for operating Earnings of no less than 27.3 cents per unit, growth of at least 3.5 per cent, and distributions of no less than 26.4 cents per unit. The September quarter payment of 6.6 cents is one quarter of that distribution figure.

For FY26, operating earnings were 26.4 cents per unit, up 4.0 per cent. Same-property net property income grew 3.0 per cent, with both shopping centres and net Lease Assets contributing 3.0 per cent. Net tangible assets per unit rose 8.4 per cent to $5.03, and the 12-month levered portfolio return was 15.8 per cent.

The gap between guided operating earnings of at least 27.3 cents and guided distributions of at least 26.4 cents indicates the REIT expects to retain a small portion of earnings while paying out most of it.

The Convenience Retail Portfolio

The distribution is backed by a portfolio that Fund Manager Ben Ellis, who is also Charter Hall's Retail chief executive, describes as focused on non-discretionary convenience retail. At 30 June 2026, the portfolio was valued at $5.3 billion across 730 properties, up from 699 a year earlier. Occupancy was 99.1 per cent and tenant arrears were below 0.5 per cent.

The portfolio is split between $2.5 billion of shopping centres, which provide 51 per cent of income, and $2.8 billion of net lease assets, which provide 49 per cent. That reaches the REIT's target mix of about half shopping centres and half net lease. The weighted average lease expiry was 7.1 years overall and 8.9 years for major tenants. The weighted average Capitalisation rate was 5.45 per cent, after a like-for-like tightening of 16 basis points. The top 10 tenant groups accounted for 61 per cent of portfolio rent.

Net lease assets include the sale and leaseback of bp and Ampol service station portfolios across Australia and New Zealand, along with the take-private of HPI. The REIT said it had deployed $907 million of Equity across these transactions, which are now valued at $1.2 billion, an average uplift of 35 per cent.

Debt Costs and Interest Rates

Interest rates matter for REIT distributions because borrowing costs come out of rental income before anything is paid to unitholders. The REIT reported pro forma gearing of 30.9 per cent. After refinancing, its Debt Margin fell by 40 basis points to 125 basis points, and its weighted average cost of debt was 5.0 per cent.

Chair Roger Davis said net lease rents with inflation-linked increases provide a hedge against inflation. That is relevant after the Reserve Bank lifted the cash rate to 4.60 per cent at its 29 September 2026 meeting and to 4.85 per cent on 3 November 2026, because inflation-linked rent reviews can help offset part of the effect of higher costs over time.

Board Changes and Governance

The AGM also marked changes to the board. Kate Melrose joined as an independent director, and Michael Gorman retired as an independent director after a decade on the board. The REIT said the board has a majority of independent directors. The results of the meeting were lodged with the ASX on 29 October, and a final director's interest notice followed on 30 October.

What Comes Next on the Calendar

After the 27 November payment, the next distribution will relate to the December quarter, ending 31 December 2026. The REIT has not yet announced the amount or dates for that distribution. Based on FY27 guidance of at least 26.4 cents per unit, investors may look for a further Appendix 3A.1 confirming the December quarter amount and timetable.

Key Takeaways

Charter Hall Retail REIT will pay 6.6 cents per unit on 27 November 2026 for the September quarter, following an ex date of 29 September and a record date of 30 September. The distribution is unfranked and paid in cash, as the reinvestment plan does not apply. The payment is one quarter of FY27 distribution guidance of at least 26.4 cents, set alongside operating earnings guidance of at least 27.3 cents. With occupancy of 99.1 per cent, a 7.1-year lease expiry profile and gearing of 30.9 per cent, the REIT's next entry on the ASX dividend calendar will be its December quarter notice.