Highlights

• Operating earnings improved in FY26 as stronger net property income and portfolio transactions outweighed higher financing costs.
• Property valuations strengthened materially, helping lift statutory profit and net tangible assets per unit.
• CQR continued reshaping its portfolio toward convenience net lease retail while refinancing debt to improve funding flexibility.

FY26 Earnings Move Higher

Charter Hall Retail REIT (ASX: CQR) released its FY26 financial results on 7 August 2026, followed by the FY26 Annual Report on 21 August 2026. The convenience retail property investor delivered higher operating earnings and distributions for the year ended 30 June 2026, supported by resilient property performance and continued portfolio repositioning.

Operating earnings increased to AU$153.4 million from AU$147.5 million in FY25, while operating earnings per unit advanced 4.0% to 26.39 cents. Statutory profit rose to AU$389.4 million, compared to AU$218.3 million previously. The FY26 figures reflect CQR’s early adoption of AASB 18, with prior-period comparatives restated accordingly.

Property Performance Supports Earnings

Same-property net property income expanded 3.0%, with both convenience shopping centres and net lease retail assets producing 3.0% growth. Portfolio occupancy remained high at 99.1%. Net tangible assets increased 8.4% to AU$5.03 per unit, while the 12-month levered portfolio return reached 15.8%.

CQR also benefited from a AU$304.8 million net revaluation gain across investment properties, compared to AU$144.1 million in FY25. This valuation movement was a major contributor to the stronger statutory result.

Portfolio Mix Continues to Evolve

During FY26, CQR acquired five net lease properties for AU$201.5 million and three convenience shopping centres for AU$250.2 million. It also increased exposure to the Ampol and BP Australia portfolios through AU$219.2 million of additional investment. Convenience net lease retail represented 49% of portfolio income by year-end, compared to 35% previously.

Capital Management Strengthens

In February 2026, CQR refinanced its debt into a AU$1.6 billion secured platform across eight lenders. The transaction extended weighted average debt maturity to four years and reduced debt margins by 40 basis points.

Full-year distributions increased 3.3% to 25.5 cents per unit. Looking ahead, management expects portfolio diversification, long-duration leases and inflation-linked rental growth to support further earnings growth in FY27.

Note- All data presented is based on information available at the time of writing.

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