This article is from the Australian Property Journal archive
OVER the FY23 period, Charter Hall Social Infrastructure REIT (ASX: CQE) continued to diversify its assets, enhancing income resilience and the portfolio quality.
CQE posted a $58.7 million statutory profit for the FY23 period, down from $358.5 million in the previous financial year.
Operating earnings were at $59.2 million, or 16.1 cents per unit, down 5.9% from $62.9 million in FY22. While distributions for the period remained unchanged at 17.2 cents per unit.
CQE posted a NTA per unit of $4.04 representing a 1.0% decrease from 30 June 2022’s $4.08 per unit.
CQE’s $2.2 billion property portfolio comprised 366 assets, with occupancy at 100%, with a WALE of 13.2-years and a WARR at 3.7%.
“FY23 saw CQE’s continued diversification into larger social infrastructure assets that provide greater income resilience and improve the portfolio quality,” said Travis Butcher, fund manager.
“We acquired some excellent social infrastructure assets that perform critical roles in the community, are strategically located and are difficult to replace.”
Over the period, CQE contracted $184.2 million of new acquisitions in diversified social infrastructure assets.
“These acquisitions were partially funded through selective disposals of non-core assets at attractive prices. Our on-going portfolio curation is designed at improving portfolio quality and security of income to ensure long-term capital and income growth for Unitholders.”
With $33.8 million of developments completed and $84.4 million of divestments contracted.
77% of CQE’s lease income was on fixed rent reviews and the balance CPI-linked, with 47% of rental income subject to market rent reviews in the next 5 years and a lease expiry profile with 3.5% of lease income expiring within the next five years.
In FY23, CQE extended and increased its debt facilities to $850 million, with a weighted average debt maturity of 2.9 years and no debt maturing until January 2025.
CQE’s has average hedging of 80% through to June 2025 at an average hedged rate of 2.3%.
While balance sheet gearing was at 32.2%, within the target 30% to 40% range, with look-through gearing at 32.8%.
CQE provided a FY24 distribution guidance of 16.0 cents per unit.
