Charter Hall's Retail CEO, Ben Ellis, said, “It’s been another very strong period of portfolio performance from CQR with like-for-like net property income growth of 3.7%. The attractive nature of our assets has seen us sell four regional non-core centres for $290 million following unsolicited offers that were in-line with our prevailing book values. That’s provided significant balance sheet capacity for us to continue improving the portfolio and I’m delighted to announce the acquisition today of Eastgate Bondi Junction shopping centre, in partnership with our wholesale capital partner in RP6.”
“This is an outstanding acquisition for CQR, acquiring a premium investment grade convenience retail centre on an attractive 6.1% passing yield. This continues our on-going portfolio curation and further concentrates CQR’s portfolio in major East Coast metropolitan markets. It’s also pleasing to see new incremental wholesale capital investing in convenience retail shopping centres, recognising the attractive nature of this asset class.” Added Mr Ellis. 

Financial Highlights:

• Operating earnings of $78.6 million, or 13.52 cents per unit (cpu)
• Statutory earnings of ($42.1) million
• Distribution of 12.3 cpu
• Net Tangible Assets (NTA) per unit of $4.54
• Portfolio pro-forma balance sheet gearing of 24.2% and look-through gearing of 31.0%1
• 73% of FY24 drawn debt hedged and available liquidity of $518 million2

Operating Highlights:

• Ongoing portfolio curation with $290 million of divestments, selling four regional, non-core assets
• Acquisition of a 20% interest in Eastgate Bondi Junction shopping centre, NSW, for $25 million3 on a 6.1% initial yield in partnership with RP6
• Acquisition of the Endeavour Group leased Rye Hotel VIC on a 5.0% initial yield for $8 million4, increasing CQR’s ownership of the LWIP2 partnership to 29%
• Record high shopping centre portfolio occupancy of 98.7%, up from 98.6% at June 2023
• Continuing positive specialty leasing spreads of +1.2% with 102 specialty lease renewals (+1.6% leasing spread) and 70 new leases (+0.1% leasing spreads)
• Like-for-like net property income (NPI) growth of 3.7% with shopping centre like-for-like NPI growth of 3.3% and net lease retail like for like growth of 5.7
• Total MAT growth of 4.1%

Related Reading:

Eastgate Bondi Junction for sale after almost 30 years of ownership - JLL & Stonebridge | Commo.

Springfield landholding for sale a unique development opportunity Southeast QLD Major Growth Corridor | Commo.

From COVID crosshairs to 2023 most traded property asset: Retail fund/syndicate and private investment boost | Commo.

Perth’s Midland Gate Regional Shopping Centre Transacts at $465 million - CBRE & Colliers 

Cairns Central sold to Fawkner Property for $390m - CBRE, Colliers and McVay Real Estate | Commo.

Woolworths Bomaderry Shopping Centre transacts for $40 million  - Colliers  | Commo.

Colliers Australian 2024 Market Outlook  | Commo.