Highlights

  • FY26 operating earnings reached $64.2 million, equivalent to 17.3 cents per unit.
  • Distributions paid for FY26 totalled 17.0 cents per unit, with quarterly payments maintained.
  • The $2.3 billion portfolio recorded 99.7% occupancy and an 11.4-year weighted average lease expiry.
  • FY26 property acquisitions totalled $291.9 million while early learning divestments were contracted.
  • The trust outlined FY27 operating earnings and distribution guidance in its August results.

Charter Hall Social Infrastructure REIT (ASX:CQE) invests in Australian social infrastructure properties serving early learning, education, healthcare and government-related needs. Managed by Charter Hall, the trust reported higher operating earnings and distributions in FY26 while reshaping its property portfolio through acquisitions and disposals. Its latest results also outlined leasing conditions, financing arrangements and distribution guidance for FY27.

FY26 Earnings and Cash Distributions

For the year ended 30 June 2026, Charter Hall Social Infrastructure REIT (ASX:CQE) reported operating earnings of $64.2 million, a 12.6% increase on FY25. Operating earnings per unit were 17.3 cents, up 13.1%, while statutory profit reached $90.5 million, increasing 27.5%. Net tangible assets stood at $3.93 per unit at year-end.

The trust paid FY26 distributions of 17.0 cents per unit, an 11.8% increase on FY25, compared with operating earnings of 17.3 cents per unit. Charter Hall Social Infrastructure REIT (ASX:CQE) pays distributions quarterly; these are property trust distributions rather than ordinary corporate dividends.

Portfolio Transactions Shift the Asset Mix

During FY26, Charter Hall Social Infrastructure REIT (ASX:CQE) acquired $291.9 million of social infrastructure properties at an average acquisition yield of 6.2%. These included university and pathology laboratory properties. The acquisitions expanded the trust’s exposure beyond its early learning properties.

The trust also contracted $136.7 million of early learning asset divestments during FY26, at an average yield of 4.4% and a 4.1% premium to book value. The combination of acquisitions and disposals changed the portfolio composition and the profile of its property tenants.

Occupancy, Rental Reviews and Debt Position

At 30 June 2026, Charter Hall Social Infrastructure REIT (ASX:CQE) reported a $2.3 billion property portfolio with 99.7% occupancy and an 11.4-year weighted average lease expiry, a measure of remaining contracted lease terms. Weighted average rental reviews were 3.8% for FY26. Across 91 market rent reviews completed during the year, average increases were 6.4%.

The trust recorded a net property revaluation increase of $19.2 million, or 1.0%, during FY26. Reported balance sheet gearing was 33.7% on the company’s stated pro-forma basis, within its 30%–40% target range. Weighted average debt maturity was 3.8 years, with no facilities due to expire until June 2029. The company reported average debt hedging of 73% for FY27 and 50% for FY28.

FY27 Guidance and Operating Considerations

In its August 2026 full-year announcement, Charter Hall Social Infrastructure REIT (ASX:CQE) provided FY27 operating earnings guidance of at least 18.1 cents per unit and distribution guidance of 18.0 cents per unit, subject to its stated assumptions and unforeseen events.

The trust remains exposed to tenant operating conditions, property leasing outcomes, movements in asset values and borrowing costs. For early learning properties, changes in childcare funding and operating expenses may affect tenant conditions. Its mix of education, laboratory and other social infrastructure assets also creates distinct leasing and property-management requirements.

Key Insights

FY26 results for Charter Hall Social Infrastructure REIT (ASX:CQE) show that operating earnings and cash distributions increased alongside a shift in the property portfolio. Occupancy, lease duration and rental reviews provide context for the reported operating performance, while acquisitions, disposals and debt arrangements shape its capital position. FY27 guidance sets out management’s expectations but remains subject to future operating and financial conditions.