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Charter Hall Social Infrastructure REIT (ASX:CQE)

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Fund overview

 

The Charter Hall Social Infrastructure REIT (ASX:CQE) (CQE or Trust), is an ASX listed Real Estate Investment Trust (REIT) that invests in social infrastructure properties within Australia.

These properties are vital in delivering essential community services to Australians and can include childcare centres and education facilities, health and transport assets and government services (e.g. justice and emergency facilities).

Our strategy focuses on providing investors with secure income and capital growth through a diversified social infrastructure portfolio leased to sector leading corporate and Government tenants.

 

Occupancy
100%

Occupancy

Properties
360

Properties

WALE
12.8 years

WALE

Gross Assets
$2.2bn

Gross Assets

Key attributes

  • ASX-200 listed property trust with total assets of over $2.2 billion
  • Long leases (WALE – 12.8 years) with predictable annual rental increases
  • 100% occupancy with high tenant customer retention due to strategic location of properties
  • Strong ESG credentials
  • Conservative balance sheet gearing of 32.5% and weighted average debt maturity of 4.3 years
  • FY24 forecast distribution of 16 cents per unit, paid on a quarterly basis

Strategy

  • Providing investors with secure income and capital growth through exposure to a diversified Social Infrastructure property.
  • Own modern or specialised assets in strategic locations leased to sector leading corporates and Government tenants.
  • Targeting sectors providing essential community services underpinned by Government support

Portfolio

  • 360 properties with 100% occupancy and WALE of 12.8 years
  • Weighted average rent reviews of 3.5% for the 12 months to 31 December 2023
  • 46% of rental income subject to market rent reviews in the next 5 years
  • Majority of leases in portfolio are triple net
  • Total land holdings of 109.9 hectares predominantly located in metropolitan and residentially zoned areas

Experienced Manager

  • Managed by Charter Hall, one of Australia's leading fully integrated property groups
  • Charter Hall has $67.7 billion of real estate funds under management across 1,641 properties
  • Charter Hall's interests are aligned through a material investment in the REIT

What are Social Infrastructure properties?

At Charter Hall, we see Social Infrastructure properties as playing an important role in delivering essential community services to Australians.

Our growing and increasingly diversified Social Infrastructure portfolio comprises of childcare centres and education facilities, health and transport assets and government services.

With a strong weighting toward education, we're Australia's largest owner of early learning centres, actively partnering with some of the country's leading childcare operators to provide an integrated service offering.

We’re experts at selecting the best properties, with a keen understanding of demand and supply fundamentals such as strong population growth, workforce participation and civic needs, and we deliver solutions that support the community and drive value for our investors.

Our areas of focus

Childcare

Importance continues as an essential part of Australia’s education system and integral to Australia’s economic prosperity to increase workforce participation

Education

By 2050 it is estimated that 55% of all employed persons will require a higher education qualification, up from 36% of Australia’s working population at present

Health

Ageing population to continue to drive increased demand for care and support services

Government Services

Areas of focus include those that are providing an essential community service (e.g. justice and emergency facilities)

Transport

Increased road, rail and air infrastructure is required to service Australia's growing population

Benefits of Social Infrastructure property investment

Geoscience Australia

  • Positive industry and demographic fundamentals to provide further growth opportunities
    • Population growth of 3.9 million people or 15% over the next 10 years
    • The number of Australians aged 65 and over will more than double over next 40 years
  • Strategic locations and specialist use properties with limited competition and low substitution risk result in long leases and drive high tenant retention rates
  • Low correlation to other property classes due to essential services providing stable ‘through the cycle’ returns
  • High underlying land values
Geoscience Australia

Our practical, authentic and targeted approach

We continue to partner with our customers and communities to explore opportunities and deliver meaningful change.

CQE leverages Charter Hall Group’s platform-wide scale and integration of sustainability as a core driver of value for the REIT.

Find out how our approach sustainability remains practical, authentic and targeted.

Access

Geoscience Australia

Our partnerships drive sustainable outcomes

At CQE, we invest in more than just assets; we invest in partnerships that drive substantial ESG outcomes. Our approach extends beyond acquiring properties with strong sustainability attributes to fostering meaningful collaborations that yield long-term benefits for our communities and the environment.

Learn about our partnerships

Board of Directors

Greg Paramor, AO

Greg Paramor, AO

Non-Executive Chair

Michael Johnstone

Michael Johnstone

Non-Executive Director

Sean McMahon

Sean McMahon

Chief Investment Officer

Kate Melrose

Kate Melrose

Non-Executive Director

Miriam Patterson

Miriam Patterson

Executive Director

Bevan Towning

Bevan Towning

Non-Executive Director

Fund Management Team

Travis Butcher

Travis Butcher

Fund Manager

Carla Hayes

Carla Hayes

Deputy Fund Manager - CQE

Scott Martin

Scott Martin

Head of Finance - Diversified

Mark Bryant

Mark Bryant

Group General Counsel and Company Secretary

Contacts

Philip Cheetham

Philip Cheetham

Head of Listed Investor Relations

Important Information

Charter Hall Social Infrastructure Limited ACN 111 338 937; AFSL 281544 (“CHSIL”) has issued this information in its capacity as the responsible entity of Charter Hall Social Infrastructure REIT ARSN 102 955 939 (“CQE"). This information has been prepared for general information purposes only and is not an offer or invitation for subscription or purchase of, or recommendation of, securities. It does not take into account any potential investors’ personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice. For more details on fees, see CQE’s latest annual report. The information has been prepared by CQE in good faith. No representation or warranty, express or implied, is made as to the accuracy, adequacy, reliability or completeness of any statements, estimates, opinions or other information contained in this presentation, any of which may change without notice. This includes, without limitation, any historical financial information and any estimates and projections and other financial information derived from them (including any forward-looking statement). Nothing contained in this information  is, or may be relied upon, as a promise or representation, whether as to the past or the future. To the maximum extent permitted by law, CQE (including its respective unitholders, shareholders, directors, officers, employees, affiliates and advisers) disclaim and exclude all liability for any loss or damage suffered or incurred by any person as a result of their reliance on the information contained in this presentation or any errors in or omissions from this presentation. This presentation contains information as to past performance of CQE. Such information is given for illustrative purposes only, and is not – and should not be relied upon as – an indication of future performance of CQE. The historical information is, or is based upon, information contained in previous announcements made by CQE to the market. These announcements are available at www.asx.com.au. This information contains certain “forward looking statements”. Forward looking words such as “expect”, “should”, “could”, “may”, “will”, “believe”, “forecast”, “estimate” and other similar expressions are intended to identify forward-looking statements. Such statements are subject to various known and unknown risks, uncertainties and other factors that are in some cases beyond CQE’s control. These risks, uncertainties and factors may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements and from past results, performance or achievements. CQE cannot give any assurance or guarantee that the assumptions upon which management based its forward-looking statements will prove to be correct or exhaustive beyond the date of its making, or that CQE’s business and operations will not be affected by other factors not currently foreseeable by management or beyond its control. Such forward-looking statements only speak as at the date of this announcement and CQE assumes no obligation to update such information. All information contained herein is current as at 31 December 2023 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.