In This Article:
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Operating Earnings Per Security: $27.4, in line with full year guidance.
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Underlying Same-Property NPI Growth: 3.6%, up from 3.3% last year.
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MAT Growth: 3.7% for the year.
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Leasing Transactions: 313 completed, with positive leasing spreads of 2.7%.
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Portfolio Occupancy: Increased to 98.8%, with total portfolio occupancy above 99%.
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Balance Sheet Gearing: Reduced to 26.7%.
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Net Property Income: Grew by 3.2% to $245.3 million.
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Distribution Per Unit: $24.7, reflecting a payout ratio of 90.3%.
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Investment Property Value: Decreased to $4.05 billion.
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Net Tangible Assets (NTA) Per Unit: Decreased by 4.7% to $4.51.
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Debt Collection: Over 99.3% at 30 June 2024.
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Balance Sheet Capacity: Over $400 million available.
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Weighted Average Cost of Debt: Increased from 3.4% in FY '23 to 4.4% in FY '24.
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Supermarket MAT Growth: 4.3%.
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Specialty Tenant Sales Productivity: Reached a record high of $11,077 per sqm.
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Tenant Retention Rate: High at 82%.
Release Date: August 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Charter Hall Retail REIT (ASX:CQR) achieved a record high occupancy rate of 98.8% in its convenience shopping center portfolio.
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The REIT completed 313 leasing transactions with positive leasing spreads of 2.7%, indicating strong demand and successful lease negotiations.
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CQR's balance sheet capacity increased to over $400 million, providing significant investment flexibility.
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The acquisition of Eastgate Shopping Center in Bondi Junction enhances the portfolio with high-quality metro centers.
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CQR's portfolio benefits from 60% of total income growth being directly or indirectly linked to inflation, providing resilience against economic fluctuations.
Negative Points
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Finance costs increased due to a rise in interest rates, impacting overall financial performance.
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Net property income growth was partially offset by divestments, leading to a decrease in investment property value.
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The weighted average cost of debt increased from 3.4% to 4.4%, reflecting higher borrowing costs.
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The REIT's net tangible assets (NTA) decreased by 4.7% to $4.51 per unit, primarily due to valuation decreases.
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Higher pressure on insurance, security, and cleaning costs was noted, although offset by savings in electricity.
Q & A Highlights
Q: Can you provide details on the expected CapEx for FY '25 and whether this is a consistent annual target? A: Joanne Donovan, Head of Retail Finance, stated that the CapEx for FY '25 is expected to be similar to FY '24, around $60 million. This includes pad site developments, center upgrades, and operational CapEx. Benjamin Ellis, Retail CEO, added that the amount could vary depending on opportunities to unlock further potential across properties.