Charter Hall Social Infrastructure REIT 2026 Full Year Results

Operating earnings per unit growth of 13.1% on FY25

Charter Hall Social Infrastructure REIT (ASX:CQE) today announces its full year results for the year ended 30 June 2026 (FY26). Key financial and operating highlights for the year are:

Financial highlights:

• Statutory profit of $90.5 million, up 27.5% on FY25
  
• Operating earnings of $64.2 million, up 12.6% on FY25;
  
• Operating earnings of 17.3 cents per unit (cpu), up 13.1% on FY25;
  
• Distributions paid of 17.0 cpu, up 11.8% on FY25; and
  
• Net tangible assets (NTA) of $3.93 per unit, an increase of 1.8% from 30 June 2025.

Operating highlights:

• Acquisitions of $291.9 million of accretive social infrastructure properties during FY26 at an average acquisition yield of 6.2%;
  
• $136.7¹ million of early learning asset divestments contracted during FY26 at an average yield of 4.4% and a 4.1% premium to book value;
  
• $2.3 billion property portfolio with a long WALE of 11.4 years and 99.7% occupancy;
  
• Weighted average rent review of 3.8%² for FY26; and
  
• 6.4% average increase achieved on 91 market rent reviews completed during the year.

Charter Hall Social Infrastructure REIT’s Fund Manager, Travis Butcher said: “CQE delivered operating earnings per unit growth of 13.1% and distribution growth of 11.8% in FY26 driven by accretive portfolio curation and strong organic rental growth. The addition of high-quality social infrastructure properties during the year, being the Western Sydney University campus in Parramatta (Sydney) and the Sonic Healthcare pathology laboratory in Bowen Hills (Brisbane) enhance portfolio quality and income growth.

Strong population growth and the essential nature of social infrastructure services continue to drive demand for high-quality assets across early learning, life sciences and health, higher education and government services. CQE is well positioned to capitalise on structural tailwinds and continue growing within this attractive and defensive real estate segment.”

Portfolio update

CQE continued to enhance the quality and resilience of its portfolio through $291.9 million of accretive acquisitions during FY26 at an average acquisition yield of 6.2%.

Sonic Healthcare pathology laboratory (Bowen Hills, Brisbane, Qld) - $111.2 million

In June 2026, CQE acquired a 25% interest in a world-class integrated pathology laboratory fully leased to Sonic Healthcare Limited in Bowen Hills, Brisbane.

The property is secured by a 20-year triple net lease with a further 30 years of options, featuring annual CPI-linked rent reviews capped at 3.5%.

The property serves as Sonic’s central laboratory for Queensland and parts of New South Wales and the Northern Territory, supporting a network of more than 450 pathology collection centres.

Developed in two stages between 2016 and 2024 and comprising approximately 43,500sqm, the property includes high-quality specialised laboratory fit-out, diagnostic offices and logistics facilities to manage high sample volumes.

CQE’s 25% interest in the property was acquired for $111.2 million on a 5.6% property yield.

Western Sydney University campus (Parramatta, Sydney, NSW) - $152.0 million

During the year, CQE increased its higher education exposure through the acquisition of a 50% interest in the university campus fully leased to Western Sydney University, located at 1 Parramatta Square, Parramatta.

The university campus is a modern, purpose-built vertical-style building completed in 2017 with NLA of approximately 26,500sqm and offers strong ESG benefits through 5-Star Green Star and 5-star NABERS ratings.

The asset is critical education infrastructure within Parramatta’s CBD, providing university services with strong transport connectivity and access to a broad range of civic, health and commercial amenities.

The property is underpinned by a long-term lease of over 16³ years with further option periods totalling 15 years and annual rent reviews of 3.75%. The 50% interest in the property was acquired for $152.0 million on an initial yield of 6.5%⁴ .

Early learning divestments

During FY26, CQE contracted $136.7 million of early learning asset divestments at an average yield of 4.4% and a 4.1% premium to book value. The active divestment program, combined with recent acquisitions, continues to enhance portfolio quality, strengthen tenant covenant profiles, and support earnings and distribution growth.

Market rent reviews

Management completed 91 market rent reviews during FY26, achieving an average uplift of 6.4%. These comprised 59 market rent reviews due in FY26 and 32 market reviews due in FY27.

Portfolio valuations

CQE independently valued 100% of the portfolio by value during FY26, with a net property revaluation uplift of $19.2 million or 1.0% reflecting the resilient nature of CQE’s portfolio.

As at 30 June 2026, CQE’s portfolio weighted average capitalisation rate was 5.5%, compared with 5.4% as at 30 June 2025.

Capital position

In July 2025, CQE completed the successful refinancing of its $900 million debt platform, including $450 million of Asian Term Loan facilities, a $50 million facility upsize, longer tenure and improved pricing.

As at 30 June 2026, balance sheet gearing was 33.7%5 which is below the midpoint of CQE’s 30-40% target gearing range. CQE’s weighted average debt maturity was 3.8 years, with no facilities expiring until June 2029.

CQE maintained a highly hedged position, with new hedging executed, resulting in 73% average hedging across FY27 and 50% in FY28, providing greater certainty in relation to its cost of debt.

Outlook and FY27 guidance

CQE will continue to execute on its strategy and actively manage its diversified social infrastructure property portfolio, delivering essential community services. Positive industry and demographic fundamentals are expected to continue to provide further opportunities in the social infrastructure sector.

Based upon information currently available and barring unforeseen events, CQE expects FY27 operating earnings to be no less than 18.1 cents per unit (an increase of 4.6% from FY26) and FY27 distributions of 18.0 cents per unit (an increase of 5.9% from FY26).

Distributions are paid quarterly.

Announcement Authorised by the Board

<sup>1. Includes 5 divestments (1 contracted in July 2026) settling in 1H FY27 amounting to $19.8 million. Excludes 5 assets totalling $21.0 million which were contracted at 30 June 2025 and settled in FY26
2. Weighted average rent review on like-for-like properties for FY26 including impact of market rent reviews
3. At time of acquisition
4. Following the annual rental increase of 3.75% which occurred in February 2026
5. Calculated on a pro-forma basis post the divestment of 5 contracted early learning centres ($19.8 million) held for sale, expected to settle by November 2026</sup>