This article is from the Australian Property Journal archive
CHARTER Hall Social Infrastructure REIT (CQE) has struck new 20-year leases across 48 of its Goodstart Early Learning centres that underpinned an $81 million uplift in its latest round of revaluations, while the trust also announced a special distribution.
CQE has 211 properties, of 61% of its childcare portfolio by gross asset value independently valued, and which included the newly leased sites.
The revaluation uplift represented 12.3% growth on the prior book values of the properties and their passing yield firmed by 56 basis points to 5.7%.
Prior to the new leases, the Goodstart centres had a weighted average lease expiry of 5.5 years. As a result of the agreement and other activities during the half, CQE’s wale at June 30 is expected to be approximately 15 years.
Excluding the 29 leasehold properties valued, the passing yield on freehold properties firmed by 59 basis points to 5.4%.
A further 122 childcare properties that were last independently valued at the end of December were adjusted for rental increases during the half, resulting in a further uplift of $1.4 million, or 0.3%.
These properties have a passing yield at of 5.7%.
CQE’s 50% interest in the Brisbane City Council Bus Network Terminal was independently revalued to $61.12 million, reflecting a passing yield of 4.5% and an uplift of $6.1 million, or 11.1% on the prior book value.
The unaudited impact of the valuations is an 8.1% increase, $0.24 increase, of the pro-forma NTA per unit to $3.27.
CQE declared the distribution for the June quarter of 4.1c per unit, resulting in an annual distribution of 15.7c per unit, and also declared a special distribution of 4.0 cents per unit, which it said resulted from “portfolio curation activity undertaken during the year and resultant capital gains” meaning its taxable income for the year would exceed the total cash distribution paid to unitholders.
