WEBULL
WebtradeDownload

Charter Hall Retail REIT (ASX:CQR) Shares Trade Below Asset Backing As Debt Risks Linger

Simply Wall St · 1d ago

Charter Hall Retail REIT slipped into this result priced as a mild outperformer, with the unit price up about 12% over three months and closing at A$4.23 after the latest session. The headline, however, sits in the balance sheet and valuation story. Net tangible assets stand at A$5.03 per unit while the stock trades at a clear discount and the trust carries debt that is not well covered by operating cash flow.

Today the market is weighing that asset backing and low P/E against the reality of a levered vehicle, an unstable dividend record and earnings that rely on a large one off gain.

Love the asset backing in Charter Hall Retail REIT but concerned about the leverage and patchy cash coverage on distributions? Check out our hand picked list of solid balance sheet and fundamentals stocks (19 results) for ideas that pair income potential with sturdier finances.

FY 2026 Earnings Summary

  • Total Revenue (FY 2026 vs FY 2025, trailing 12 months): A$417.9 million vs A$327.9 million (up 27.4%)
  • Net Income, excluding one off items (FY 2026 vs FY 2025, trailing 12 months): A$389.4 million vs A$213.8 million (up 82.1%)
  • Basic EPS (FY 2026 vs FY 2025, trailing 12 months): A$0.67 vs A$0.367859 (up 82.1%)
  • Net Profit Margin (FY 2026 vs FY 2025, trailing 12 months): 93.2% vs 65.2% (margin higher year on year; includes A$140.7 million one off gain)

Prefer clear charts to dense earnings tables for Charter Hall Retail REIT? Get a visual view of its recent earnings power, including how net income and margins compare, in the company report for Charter Hall Retail REIT.

ASX:CQR Trailing 12-Month Earnings & Revenue History as at Aug 2026
ASX:CQR Trailing 12-Month Earnings & Revenue History as at Aug 2026

Charter Hall Retail REIT: Income Story Backed By Operations

For investors leaning positive on Charter Hall Retail REIT, the latest earnings broadly line up with that view. Operating earnings per security rose 4% to A$0.264 and distributions grew 3.3% to A$0.255. Same property net property income held at 3% growth with occupancy at 99.1% and a weighted average lease expiry of 7.1 years. Nondiscretionary tenants and net lease structures, which now provide about 49% of income, support the idea of a relatively steady cash engine behind those distributions.

Leverage, Refinancing And One Off Gains Still Matter

The cautious side of the Charter Hall Retail REIT story also has support. Net tangible assets moved to A$5.03 per unit, helped by A$248m of valuation uplift and a large one off gain that inflates headline profitability. Gearing sits at 30.9% and only 67% of FY27 debt and 46% of FY28 debt are hedged, so future interest costs remain a live issue. That mix of leverage, partial hedging and one off support to earnings keeps the refinancing and balance sheet risk firmly in view.

After a year that leans on valuation uplifts and one off gains, are gearing and dividend risks just the start of deeper issues? Review the full risk analysis for Charter Hall Retail REIT which shows 4 important warning signs

Take Charge Of Your Next Move

If the mix of asset backing, gearing and one off gains in Charter Hall Retail REIT has your interest, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and wait for an entry point that suits you. After you own units, use the Portfolio Command Center to cut through noise and focus on essential updates that matter for your holdings. For a longer term view, lean on the Community to see how other investors are thinking about risks, income and balance sheet trends. Spot potential catalysts and emerging risks early so you can stay ahead of the market instead of reacting late.

Seeking Alternatives Beyond Charter Hall Retail REIT

Fresh ideas can move fast. Some stocks build quiet momentum, others are dropping back before the crowd catches on. Use these curated shortlists while it matters and get in early.

  • Spot companies with strong income potential and balance sheets that are not stretched by checking the curated 4 dividend fortresses before yield opportunities get crowded.
  • Ride long term infrastructure and electrification themes by scanning the hand picked 36 power grid technology and infrastructure stocks while many of these stories are still under the radar for now.
  • Stay ahead of AI’s backbone buildout by reviewing the focused 56 AI infrastructure stocks before valuations fully reflect the breakout spending on chips, data centers and networking.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.