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Charter Hall Social Infrastructure REIT (ASX: CQE) today announced its results for the half year ended 31 December 2022. Key financial and operating highlights for the period are:
Charter Hall Social Infrastructure REIT’s Fund Manager, Travis Butcher said:
“CQE continues to execute on its strategy with another period actively curating the portfolio, divesting non-core assets and reinvesting in larger social infrastructure assets that have greater earnings resilience and improve the portfolio’s quality. We have acquired some excellent social infrastructure assets that perform critical roles in the community, are well located and are difficult to replace. CQE unitholders have benefitted from the Charter Hall platform, securing these assets with other Charter Hall managed funds.”
Property portfolio performance
During 1H FY23, CQE extended and increased CQE’s debt facilities by $50 million to $850 million.
CQE has a weighted average debt maturity of 3.5 years with diversified funding sources and no debt maturing until January 2025.
In December 2022, CQE implemented an additional $150 million of hedging and as a result, CQE has an average amount hedged of 59% with a weighted average hedge maturity of 2.9 years and an average hedged rate of 1.82%. Balance sheet gearing7 is 33.7% and look-through gearing7 is 34.4%. CQE has available investment capacity of $75 million as at 31 December 2022.
FY23 outlook and guidance
CQE will continue to execute on its diversified social infrastructure strategy and actively curate the portfolio to larger scale assets with stronger tenant and property fundamentals.
Based on information currently available and barring any unforeseen events, CQE reconfirms the existing FY23 distribution guidance of 17.2 cents per unit
CQE will continue to pay quarterly distributions.
1 Like-for-like valuation uplift, excludes development sites, assets held for sale, acquisitions and developments completed during 1H FY23
2 Forecast Weighted Average Rent Review based on average fixed (3.0%) and CPI rental adjustments (7.5%) to 31 December 2023
3 Reflects CQE’s 25% interest
4 Reflects CQE’s 49.9% interest
5 One property settled in 1H FY23 with remaining 3 properties to settle in 2H FY23
6 Five divestments contracted in 1H FY23. One property settled in December 2022 with remaining 4 properties to settle in 2H FY23. In addition, there are a further 2 childcare centres contracted for divestment previously announced in FY22, also due for settlement in 2H FY23
7 Balance sheet and look through gearing are calculated as total borrowings net of unrestricted cash/total assets less unrestricted cash and has been adjusted to include contracted acquisitions and disposals, divestment of ARF units and the completion of the childcare development pipeline. Unadjusted balance sheet gearing and look-through gearing as at 31 December 2022 was 31.6% and 32.3% respectively
Announcement Authorised by the Board
Click here to view the PDF ASX Release
Click here to view the PDF 1H FY23 Results Presentation
Click here to view the PDF Interim Financial Report
Click here to view the PDF Appendix 4D