Key Highlights

  • Distributions paid were 17.0 cents per unit, up 11.8% on FY25.
  • Operating earnings per unit were 17.3 cents, up 13.1%, and statutory profit was $90.5 million.
  • Net tangible assets were $3.93 per unit, up 1.8%.
  • The approximate yield is near 7.6%, unfranked, with no reinvestment plan.

Charter Hall Social Infrastructure REIT (ASX:CQE) announced its results for the year ended 30 June 2026 on 4 August 2026, reporting operating earnings per unit growth of 13.1% and distributions up 11.8%. Charter Hall Social Infrastructure REIT (ASX:CQE) owns social infrastructure property, a category that includes early learning centres, university campuses and healthcare facilities. At 30 June 2026 its portfolio was valued at $2.3 billion, with a weighted average lease expiry of 11.4 years and occupancy of 99.7%.

Charter Hall Social Infrastructure Limited is the responsible entity, within the Charter Hall group. The REIT earns rent under long leases, with annual reviews and market rent reviews, and it recycles capital by buying properties that fit its criteria and selling others. During FY26 it bought interests in a Western Sydney University campus in Parramatta and a Sonic Healthcare pathology laboratory in Brisbane, and it sold early learning assets. That mix shows a move from childcare towards higher education and healthcare tenants.

The Dividend Picture

CQE has an approximate yield of about 7.6% at a price near $2.27, no franking and no distribution reinvestment plan. Distributions paid were 17.0 cents per unit against operating earnings of 17.3 cents, so about 98% of operating earnings was paid out, a calculation from the stated figures. The 11.8% rise in distributions was slightly below the 13.1% rise in operating earnings per unit, which left a small cushion. The release gives no FY27 distribution guidance in the extract used here.

Understanding the Dividend Data for Charter Hall Social Infrastructure REIT

At a share price of approximately $2.27, the approximate yield is 7.6%. There is no franking, so the grossed-up yield is the same as the cash yield and no tax credits are attached to the payments. No distribution reinvestment plan is available, so payments are made in cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $762 of cash distributions over a year before tax, calculated from the stated percentage. The extract used here gives no FY27 distribution guidance. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

FY26 Results

Statutory profit was $90.5 million, up 27.5%, and operating earnings were $64.2 million, up 12.6%. Net tangible assets were $3.93 per unit, up 1.8%. The weighted average rent review was 3.8%, and 91 market rent reviews achieved a 6.4% average increase.

Acquisitions and Divestments

CQE acquired $291.9 million of social infrastructure properties at an average yield of 6.2%, including the Western Sydney University campus in Parramatta and a Sonic Healthcare pathology laboratory in Bowen Hills, Brisbane. It contracted $136.7 million of early learning divestments at an average yield of 4.4% and a 4.1% premium to book value. This portfolio curation moved capital from early learning towards other social infrastructure.

Portfolio Strength

The portfolio's long lease term and near-full occupancy underpin the income stream. The release describes the acquisitions as accretive and ties earnings growth to both portfolio curation and organic rental growth.

Key Acquisitions

In June 2026 CQE acquired a 25% interest in a pathology laboratory in Bowen Hills, Brisbane, fully leased to Sonic Healthcare, for $111.2 million at a 5.6% property yield. It carries a 20-year triple net lease with 30 years of options and annual CPI-linked reviews capped at 3.5%, and serves a network of more than 450 collection centres. During the year CQE also bought a 50% interest in the Western Sydney University campus at 1 Parramatta Square for $152.0 million, a purpose-built building of about 26,500 square metres completed in 2017 with 5-Star Green Star and NABERS ratings.

Divestments and Portfolio Shape

CQE contracted $136.7 million of early learning divestments at an average yield of 4.4%, a 4.1% premium to book value, which recycles capital away from childcare towards higher education and healthcare. The fund manager says social infrastructure is a defensive segment, and the portfolio's 11.4-year lease expiry and 99.7% occupancy support predictable income. The extract used for this article contains no FY27 distribution guidance.

How the Payout Measure Works

The measure that matters for this dividend is operating earnings per unit. Operating earnings of 17.3 cents per unit exclude fair value movements, so they differ from the statutory profit of $90.5 million. Distributions of 17.0 cents are about 98% of operating earnings. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The results were released on 4 August 2026. The extract used here gives no FY27 guidance or payment dates. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.