Highlights

  • FY26 operating Earnings reached AUD 153.4 million, equivalent to 26.4 cents per unit, up 4.0% on FY25.
  • FY26 distributions totalled 25.5 cents per unit, while statutory profit was AUD 389.4 million.
  • Portfolio occupancy reached 99.1%, with like-for-like net property income increasing 3.0%.
  • FY27 guidance anticipates operating earnings of at least 27.3 cents per unit and distributions of 26.4 cents per unit.

Charter Hall Retail REIT (ASX:CQR) owns interests in Australian convenience retail shopping centres and net Lease retail properties, including Assets serving everyday shopping and fuel-related needs. Charter Hall Retail REIT (ASX:CQR) shares closed at AUD 3.91 on 10 November 2026. Its FY26 results showed higher operating earnings, portfolio valuation gains and continued changes to the balance between shopping centres and net lease assets.

FY26 earnings and property performance

For the year ended 30 June 2026, Charter Hall Retail REIT (ASX:CQR) recorded operating earnings of AUD 153.4 million, or 26.4 cents per unit, up 4.0% from FY25. The annual distribution rose 3.3% to 25.5 cents per unit. Statutory profit was AUD 389.4 million, while net tangible assets increased 8.4% to AUD 5.03 per unit. Statutory profit can incorporate property valuation movements.

Like-for-like net property income increased 3.0% across the portfolio, with both shopping centres and net lease retail recording 3.0% growth. Occupancy reached 99.1%. The REIT completed 416 specialty leasing transactions during FY26, including 145 new leases and 271 renewals, producing an average positive leasing spread of 4.1%. Supermarket moving annual turnover increased 3.6%.

Portfolio acquisitions, sales and valuations

Charter Hall Retail REIT (ASX:CQR) continued to move towards an approximately equal income allocation between convenience shopping centres and convenience net lease retail. Net lease retail accounted for 49% of portfolio income at 30 June 2026. The REIT settled the AUD 251 million Acquisition of three shopping centres in Queensland and New South Wales, with an average acquisition Yield of 6.7%. It also settled an AUD 200 million Equity Investment in a convenience retail partnership, raising its ownership from 5% to 49.9%.

Portfolio recycling included the AUD 110 million sale of Lansell Plaza in Victoria. In July 2026, after the financial year ended, the REIT acquired Yeppoon Central for AUD 65.3 million and sold three shopping centres for AUD 210 million. Portfolio net valuations increased AUD 248 million, or 4.9%, over FY26, contributing to the increase in net tangible assets.

Debt refinancing and FY27 expectations

During FY26, Charter Hall Retail REIT (ASX:CQR) refinanced its Debt platform, reducing its average debt Margin by 40 basis points to 125 basis points. The reported weighted average cost of debt was 5.0%, with weighted average debt Maturity of 3.6 years at 30 June 2026. Pro forma Balance Sheet gearing was 30.9%, reflecting specified transactions completed after balance date. The REIT reported average interest-rate hedging of 67% for FY27 and 46% for FY28.

For FY27, Charter Hall Retail REIT (ASX:CQR) guided to operating earnings of no less than 27.3 cents per unit and distributions of 26.4 cents per unit, both representing indicated growth of 3.5%. Financing costs, tenant trading conditions, lease negotiations and property valuations remain relevant variables when assessing whether the REIT meets its guidance.

Key Insights

Charter Hall Retail REIT (ASX:CQR) entered FY27 with high reported occupancy, positive like-for-like rental income growth and a refinanced debt structure. Its FY26 asset purchases and disposals changed portfolio composition, while FY27 earnings and distribution targets remain subject to operating and market conditions.