Charter Hall Retail REIT: Record rally continues!

Shares of the Australian retail REIT continue their impressive upward trajectory. With a 20 percent gain year-to-date and significant forecast upgrades, Charter Hall Retail REIT is demonstrating why it is currently among the top performers in the Australian real estate market.

Mega-deals drive growth

Charter Hall Retail REIT has significantly accelerated its expansion strategy with two major transactions. The complete acquisition of four Bunnings properties, valued at $151 million, strengthens its convenience store portfolio. Even more significant, the completion of the Hotel Property Investments transaction brings a $1.3 billion portfolio of 57 pub and hotel assets into the company.

These strategic acquisitions significantly diversify the investment portfolio and create new long-term return prospects. The total portfolio now comprises over $4.8 billion in real estate assets – almost 40 percent of which are net-lease retail properties.

The numbers speak for themselves.

At the recent annual general meeting, management presented convincing figures and bold forecasts:

• Operating profit FY25: 25.4 cents per unit
• Distribution FY25: 24.7 cents per unit
• FY26 operating profit forecast: At least 26.4 cents (+4%)
• FY26 payout forecast: At least 25.5 cents (+3.3%)
• Portfolio occupancy rate: Spectacular 98.9%

For the first time in years, the REIT is raising its distribution forecast – a clear signal of confidence to investors. Starting in the first quarter of FY26, distributions will even be made quarterly.

Operational strength unbroken

Can the strong rental environment sustain the upward trend? Current leasing figures give cause for optimism: With 183 lease renewals, the REIT achieved an average rent increase of 4.9 percent. New contracts even yielded a substantial 7.6 percent more – an average increase of 5.5 percent in specialty lease spreads.

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Should investors sell immediately? Or is it still worth investing in Charter Hall Retail REIT ?

These outstanding operational results feed directly into net property income and underline the sustained demand for space in the Charter Hall properties.

Perfect market environment for convenience retail

The current fundamental situation is playing into the REIT's hands: Strong demand for convenience properties is coinciding with record lows in new construction projects. Combined with population growth, this creates an ideal environment for above-average capital growth.

With its net-zero CO2 footprint achieved from July 2025, Charter Hall Retail REIT is also perfectly positioned for the growing demand for sustainable investments. The combination of operational strength, strategic growth, and a favorable market environment explains the 20 percent rally – and suggests further gains.

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