Charter Hall Social Infrastructure REIT has reported a significant increase in its first-half earnings and upgraded its full-year distribution outlook. The ASX-listed trust saw operating earnings climb to $31.4 million for the six months ending December 31, a 10.2 per cent increase compared to the previous year. Statutory profit also experienced a substantial rise, jumping 51.6 per cent to $47 million. Charter Hall Social Infrastructure REIT invests in and manages social infrastructure properties, such as early learning centres and government-tenanted buildings, across Australia and New Zealand. The REIT aims to provide investors with stable, long-term income and capital growth through its diversified portfolio.
Operating earnings per unit rose by 11.8 per cent to 8.5 cents, while distributions increased by 12.0 per cent to 8.4 cents per unit. Net tangible assets also saw a positive movement, rising 1 per cent to $3.90 per unit. Bolstered by higher-yielding acquisitions and asset sales above book value, the trust has upgraded its fiscal year 2026 distribution guidance by 1.2 per cent to 17 cents per unit. Part of the buying was funded through the sale of 20 early learning assets for $88.9 million at a 4.3 per cent yield, achieving a 4.6 per cent premium to book value.
The REIT’s property portfolio was valued at $2.3 billion, with independent valuations on 61 per cent of assets resulting in a $12.2 million uplift, or 1.1 per cent, from June book values. The portfolio yield also experienced a slight increase, edging up to 5.5 per cent from 5.4 per cent. Charter Hall Social Infrastructure’s strong performance reflects its strategic focus on high-quality assets and proactive portfolio management.
The balance sheet has been strengthened following a $900 million debt refinancing in July, which included the addition of $450 million in Asian term loan facilities. This refinancing has extended the weighted average debt maturity to 4.4 years, with no maturities due until July 2029. Gearing currently stands at 34.1 per cent, which is within the trust’s target range, indicating a healthy financial position.
