Charter Hall Social Infrastructure Reit · ASX:CQE
Charter Hall Social Infrastructure Reit — H1 FY2025 Earnings Presentation
30 slides from Charter Hall Social Infrastructure Reit's earnings presentation, Feb 11, 2025
Slide 1: Charter Hall Social Infrastructure REIT 2025 Half Year Results
Charter Hall Social Infrastructure REIT 2025 Half Year Results ASX:CQE Charter Hall Social Infrastructure REIT 2025 Half Year Results
Slide 2: Agenda
Acknowledgement of Country Charter Hall acknowledges the Traditional Custodians of the lands on which we work and gather. We pay our respects to Elders past and present and recognise their Agenda continued care and contribution to Country. 1. 2025 Half Year Highlights and Strategy 2. Financial Perfo
Slide 3: 2025 Half Year Highlights and Strategy
1 2025 Half Year Highlights and Strategy Only About Children Camberwell, Vic Charter Hall Social Infrastructure REIT 2025 Half Year Results 3
Slide 4: 1H FY25 highlights
2025 Half Year Highlights and Strategy 1H FY25 highlights EPU / DPU Acquisitions 7.6 / 7.5cpu $47.0m In line with FY25 DPU guidance of 15.0 cents Accretive life science acquisition with initial yield of 6.4%2 NTA per Unit Divestments3 $3.82 $84.0m No change from 30 June 2024 16 properties sold for 8
Slide 5: Acquisition Overview – Clinipath Pathology
2025 Half Year Highlights and Strategy Acquisition Overview – Clinipath Pathology – In January 2025, CQE increased its exposure to life sciences through the acquisition of a pathology laboratory in Osborne Park, Western Australia leased to Clinipath Pathology1 for $47.0 million on an initial yield o
Slide 6: Our Strategy
2025 Half Year Highlights and Strategy Our Strategy Providing investors with resilient income and capital growth from a social infrastructure property portfolio Enhancing income Targeting stable and sustainability and Portfolio curation ongoing capital growth resilience ‒ Building a diversified soci
Slide 7: A diversified social infrastructure property portfolio delivering essential community services
2025 Half Year Highlights and Strategy A diversified social infrastructure property portfolio delivering essential community services – Diversified social infrastructure portfolio (347 assets) with SI Sub-sector by % of income as at 31 December 20243 sector leading tenants providing essential servic
Slide 8: Financial Performance
2 Financial Performance TAFE & Wise Medical Robina, Qld Charter Hall Social Infrastructure REIT 2025 Half Year Results 8
Slide 9: Earnings Summary
Financial Performance Earnings Summary $m 1H FY24 1H FY25 % change Net Property Income - LFL1 50.0 51.6 3.2 - Strong like-for-like net property income growth of 3.2% has been partially offset by net Net Property Income – Transactions 2.9 1.9 (34.5) divestment activity Operating Expenses (6.7) (6.7)
Slide 10: Balance Sheet
Financial Performance Balance Sheet $m 30 June 2024 31 December 2024 - In 1H FY25, CQE settled a total of $68.0 million Cash 11.6 16.1 of childcare property divestments Investment Properties 1,970.5 1,930.0 - Independently valued 59% of the portfolio with a net property revaluation uplift of $6.4 mi
Slide 11: Capital Management
Financial Performance Capital Management Key metrics as at 31 December 20241 - Diversified funding sources with no debt Debt summary Hedging summary maturity until July 2027 with a weighted average debt maturity of 3.4 years Facility Limit ($m) 850.0 Debt Hedged ($m)3 560.0 Drawn Debt ($m) 673.0 Ave
Slide 12: Portfolio Update
3 Portfolio Update Only About Children Balwyn North, Vic Charter Hall Social Infrastructure REIT 2025 Half Year Results 12
Slide 13: Properties delivering predictable and growing returns
Portfolio Update Properties delivering predictable and growing returns C l i Tenant profile by % of income as at 31 December 20245 c k i c o Property passing WALE (years) Occupancy n t o Attractive yield G8 Education a d d 8% Property p i Only About c 5.3% 11.9 100% 1 2 t Fundamentals Children u r e
Slide 14: Portfolio WALE remains strong at 11.9 years
Portfolio Update Portfolio WALE remains strong at 11.9 years – Only 2.9% of lease income expiring within the next 5 years (only 0.9% without further options) – Typical notice periods of 3 – 5 years from expiry Lease expiry profile by % of annual rent: CY25 – CY44+ 16 14 WALE: 11.9 years 12 10 8 % 6
Slide 15: Strong rental growth potential with 43% of income subject to market reviews
Portfolio Update Strong rental growth potential with 43% of income subject to market CQE Annual Rent Review Schedule by Rental Income reviews in next 4 years 11% 11% 9% 9%4% 15% 15% 12% 12% 19% 20% 20% 19% 19% – 15 market reviews completed in 1H FY25 achieving uplift of 19% 19% 21% 21% 16.4%1 – 8 un
Slide 16: Portfolio Valuations
Portfolio Update Portfolio Valuations - 178 operating assets were independently valued as at 31 Australian childcare property transactions and yields2 December 2024 resulting in a passing yield of 5.3% (June 2024: 5.2%) 1,000 7.0% - This resulted in a net 0.5% or $6.4 million increase on June 2024 b
Slide 17: ESG Leadership
Portfolio Update ESG Leadership Achievements in 1H FY25 Looking forward Net Zero carbon Clean energy Green Star Scope 3 emissions Environment Maintained Net Zero carbon emissions Total solar installed across the portfolio Nearing completion on partnership with Partner with tenant customers to reduce
Slide 18: Outlook and Guidance
4 Outlook and Guidance Nido Early School Coburg, Vic Charter Hall Social Infrastructure REIT 2025 Half Year Results 18
Slide 19: Outlook and Guidance
Outlook and Guidance Outlook and Guidance − Continue to execute on CQE’s strategy to actively manage the diversified social Click infrastructure property portfolio delivering icon to add essential community services pictur e − Positive industry and demographic fundamentals will continue to provide f
Slide 20: Additional Information
5 Additional Information Geoscience Australia Narrabundah, ACT Charter Hall Social Infrastructure REIT 2025 Half Year Results 20
Slide 21: Statutory Earnings Reconciliation
Additional Information Statutory Earnings Reconciliation 1H FY24 1H FY25 ($m) ($m) Operating Earnings 29.6 28.5 Net fair value movements on investment properties (29.3) 10.8 Net movements on derivative financial instruments (12.9) (8.4) Straight lining of rental income, amortisation of lease fees an
Slide 22: CQE and joint venture summary - 1H FY25
Additional Information CQE and joint venture summary - 1H FY25 Investment in property joint ventures – operating earnings and balance sheet breakdown $m CQE CH BBD Trust LWR GSA PFA Westmead Total Ownership interest 100.0% 50.0% 25.0% 49.9% Properties Multiple Brisbane Bus Terminal Geoscience Austra
Slide 23: CQE and joint venture summary - 1H FY24
Additional Information CQE and joint venture summary - 1H FY24 Investment in property joint ventures – operating earnings and balance sheet breakdown $m CQE CH BBD Trust LWR GSA PFA Westmead Total Ownership interest 100.0% 50.0% 25.0% 49.9% Properties Multiple Brisbane Bus Terminal Geoscience Austra
Slide 24: Debt Summary
Additional Information Debt Summary Debt summary ($m) Limit Drawn Maturity Gearing ICR (covenant) (covenant) - $0.9 billion of look through debt facilities across Balance sheet debt CQE’s head trust and joint venture partnerships Domestic bank bilateral debt facilities 260.0 260.0 Jul-27 - Weighted
Slide 25: Portfolio Overview
Additional Information Portfolio Overview As at 31 December 2024 No. Value ($m) % Portfolio Passing Yield (%) QLD 110 548.5 25.8 4.8 − 74% of leases in the portfolio are triple net VIC 82 491.5 23.1 5.0 NSW / ACT 74 283.3 13.3 5.5 − Total land holdings of 107.1 hectares: WA 43 225.9 10.6 5.1 − 72% m
Slide 26: Social Infrastructure: Properties delivering essential community services
Additional Information Social Infrastructure: Properties delivering essential community services – Strong industry and demographic trends resulting in increasing demand and future growth opportunities for social infrastructure assets – Population growth of 3.9 million people or 15% over the next 10
Slide 27: Childcare Industry
Additional Information Childcare Industry Childcare Subsidy – Federal Government Spending1 Government funding forecast to increase to $16.0 billion 18 per annum1 in FY27 16 – Importance of sector remains crucial to Australia’s education system and 14 economic prosperity, driving workforce participat
Slide 28: Key Statistics
Additional Information Key Statistics Financial & Capital Management Metrics FY21 FY22 FY23 FY24 1H FY25 NTA ($) 3.25 4.08 4.04 3.82 3.82 DPU (c) – Ordinary 15.7 17.2 17.2 16.0 7.5 DPU (c) – Special 4.0 - - - - Gearing (%) 24.5 29.8 32.2 33.0 31.0 Weighted Average Cost Of Debt (%) 2.8 3.2 4.3 5.1 5.
Slide 29: Glossary
Additional Information Glossary ACECQA Australian Children’s Education and Care Quality Authority ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt less cash to total tangible assets, less cash CPI Consumer Price Index CPU Cents per unit CQE Charter H
Slide 30: Further information
Further information Investor Relations Click icon to Tel 1300 365 585 (within Australia) add pictur e +61 2 8651 9000 (outside Australia) Email reits@charterhall.com.au Presentation authorised by the Board charterhall.com.au/cqe IMPORTANT NOTICE & DISCLAIMER Charter Hall Social Infrastructure Limite
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