Charter Hall Retail REIT delivered earnings growth of 4.0 percent in FY26 with operating earnings of 26.4 cents per unit, while providing guidance for at least 3.5 percent growth in FY27 with earnings expected to reach 27.3 cents per unit. The result demonstrates the resilience of CQR’s convenience retail strategy and its ability to grow earnings despite a subdued retail environment, underpinned by reliable tenant covenants and strategic property locations.
The REIT’s net tangible asset backing improved 8.4 percent to $5.03 per unit, outpacing earnings growth and reflecting both strong operational performance and portfolio revaluation gains across its $5.2 billion asset base. Portfolio occupancy reached 99.1 percent, up 20 basis points from June 2025, confirming CQR’s positioning as a preferred landlord among tenants and the quality of its asset selection. Same-property net property income growth of 3.0 percent across both the shopping centre and net lease segments demonstrates consistent rental income expansion, with both segments contributing equally to this growth.
CQR’s convenience retail portfolio focuses on non-discretionary retail in strategic locations with high visibility and convenient access, combined with long-term tenant tenure and diverse rent review structures. This positioning provides natural protection through economic cycles, differentiating the portfolio from discretionary retail operators facing demand headwinds. The REIT manages Australia’s largest convenience retail platform with a nationwide presence, employing retail specialists across functions and states to deliver an integrated service offering to tenants.
Capital management through portfolio curation and asset recycling accelerated significantly in the second half, with total divestments of approximately $400 million completed or announced alongside acquisitions of roughly $516 million settled or signed. CQR sold three metropolitan assets at a 5.3 percent yield and deployed proceeds into higher-yielding regional convenience properties, including Gympie Central and Yeppoon Central in Queensland, targeting average yields of 6.7 percent. This active redeployment strategy repositions the portfolio towards more resilient regional convenience retail with stronger rent growth dynamics.
The balance sheet remained conservative with gearing of 30.9 percent and a weighted average cost of debt of 5.0 percent. CQR refinanced debt facilities during the period, with debt margins contracting by 40 basis points to 125 basis points, reflecting improved credit metrics and stronger market positioning. The REIT’s 12-month levered portfolio return of 15.8 percent reflected both earnings growth and the benefit of asset revaluation, supporting continued capital management flexibility.
Investors should monitor how CQR’s regional convenience retail acquisitions perform relative to the divested metropolitan assets, whether same-property NPI growth can sustain above 3.0 percent as rents on shorter lease cycles reset upward, and whether the REIT maintains leverage within its guided range while continuing to recycle capital. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Charter Hall Retail REIT (ASX: CQR)
Charter Hall Retail REIT is a real estate investment trust that owns and manages a portfolio of retail properties in Australia and New Zealand, primarily supermarket-anchored neighbourhood shopping centres, service stations, and retail logistics facilities. The trust’s major tenants include leading retailers such as Woolworths, Coles, Wesfarmers, Aldi, Ampol, and BP. It operates approximately 699 properties across Australia and is managed by Charter Hall Group.
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