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Balwyn North (Victoria) Childcare Centre. Image: CQE
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  • Charter Hall Social Infrastructure REIT’s (CQE) childcare portfolio witnesses a 12.3 per cent bump
  • The company had 211 of its 333 childcare properties independently value resulting in an $81 million uplift
  • CQE also agreed to new 20-year leases on 48 properties with its major tenant, Goodstart Early Learning
  • It announced a distribution for the quarter of 4.1 cents per unit, with a special distribution of four cents per share
  • CQE is up 1.88 per cent and trading at $3.53 per share at 11:41 am AEST.

Charter Hall Social Infrastructure REIT (CQE) has seen a 12.3 per cent rise in its childcare portfolio valuation.

The company had 211 of its 333 childcare properties independently value as at June 30, resulting in an $81 million uplift.

Excluding the 29 leasehold properties valued, the passing yield on freehold properties firmed by 59 basis points to 5.4 per cent.

A total of 122 childcare properties that were last independently evaluated on December 31, 2020 were adjusted for rental increases that occurred during the half, resulting in a $1.4 million or 0.3 per cent increase.

The passing yield on these assets is 5.7 percent as of June 30, 2021.

CQE’s 50 per cent stake in the Brisbane Bus Depot was independently revalued at $61.12 million, indicating a 4.5 per cent passing yield and a $6.1 million, or 11.1 per cent, increase over the previous book value.

The unaudited impact of the rise in valuations as is an increase to the pro-forma net tangible assets per unit to $3.27, a $0.24 or 8.1 per cent increase.

The company also agreed to new 20-year leases on 48 properties with its major tenant, Goodstart Early Learning “on mutually beneficial terms including fixed annual increases”.

This, and other leasing activities, means CQE’s weighted average lease expiry is now approximately 15 years.

CQE has also declared a distribution for the quarter of 4.1 cents per unit, payable on July 21, resulting in the annual distribution paid to shareholders being 15.7 cents per unit.

It also announced a special distribution of four cents per share as a result of increased taxable income including the capital gains being attributed to unitholders.

Earlier in the month, the company announced the settlement of the Mater Misericordiae corporate headquarters and training facilities in Brisbane.

The purchase price of $122.5 million reflected a passing yield of 4.84 per cent, underpinned by a 10-year lease to Mater and a fixed annual rent increase of three per cent.

CQE also increased its debt facilities to $600 million, with $100 million being provided by a new financier.

Charter Hall Social Infrastructure REIT shares are up 1.88 per cent and trading at $3.53 per share at 11:41 am AEST.

CQE by the numbers
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