Charter Hall Social Infrastructure REIT (CQE) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: 5%
• Average Volume (3M): 648.89K
• Price to Earnings (P/E): 51.7
• Beta (1Y): 1.07
• Revenue Growth: 0.93%
• EPS Growth: 204.08%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Specialty
• EPS (TTM): 0.06
• Shares Outstanding: 371,108,760
• 10 Day Avg. Volume: 699,615
• 30 Day Avg. Volume: 648,890
• PEG Ratio: -0.22
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.26
• Price Target Upside: 6.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: AU$3.50 ▲(14.38%Upside)

The overall stock score for Charter Hall Social Infrastructure REIT is primarily driven by strong technical analysis indicators and sound financial performance, despite recent profitability challenges. The high P/E ratio tempers the score slightly, indicating potential overvaluation, but the attractive dividend yield partially offsets this concern. The absence of significant recent corporate events or earnings call insights limits the potential for any further adjustments.

Charter Hall Social Infrastructure REIT Business Overview & Revenue Model

Company Description

Charter Hall Social Infrastructure REIT is the largest Australian ASX-listed real estate investment trust (A-REIT) that invests in social infrastructure properties. Charter Hall Social Infrastructure REIT is managed by Charter Hall Group (ASX:CHC). With over 29 years' experience in property investment and funds management, we're one of Australia's leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors – office, retail, industrial and social infrastructure. Operating with prudence, Charter Hall as manager of CQE, has carefully curated a $40 billion plus diverse portfolio of over 1,100 high quality, long leased properties. Partnership and financial discipline are at the heart of our approach. Acting in the best interest of customers and communities, we combine insight and inventiveness to unlock hidden value. Taking a long term view, our $7.3 billion development pipeline delivers sustainable, technologically enabled projects for our customers. The impacts of what we do are far-reaching. From helping businesses succeed by supporting their evolving workplace needs, to providing investors with superior returns for a better retirement, we're powered by the drive to go further.

How the Company Makes Money

Charter Hall Social Infrastructure REIT generates revenue primarily through the lease of its properties to tenants in the social infrastructure sector. The REIT earns rental income from long-term lease agreements with tenants such as educational institutions, healthcare providers, and government agencies. These leases often include built-in rent escalations, which help maintain a steady growth of rental income over time. Additionally, the REIT may engage in strategic property acquisitions and developments to expand its portfolio and enhance income potential. The stability of income is further supported by the essential nature of the services provided by its tenants, which generally results in lower vacancy rates and reliable occupancy levels.

Charter Hall Social Infrastructure REIT Financial Statement Overview

Summary

Charter Hall Social Infrastructure REIT exhibits strong revenue growth and maintains a solid equity foundation. However, the net loss in 2024 has affected profitability metrics, raising concerns about operational efficiency and profitability sustainability. The balance sheet remains robust despite increased leverage, and cash flow management is generally sound, although recent trends suggest monitoring is required.

Income Statement

The company has shown consistent revenue growth over recent years, with a 1% increase from 2023 to 2024. However, the net profit margin has significantly declined due to a reported net loss in 2024, impacting overall profitability. The gross profit margin remains healthy but has decreased slightly from previous years. EBITDA margin is notably lower in 2024, indicating reduced operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage, which might pose a risk if not managed. However, the company maintains a strong equity base, with a high equity ratio suggesting sound financial health. Return on equity has turned negative due to the net loss, but past performance shows a strong ability to generate returns.

Cash Flow

The company demonstrates stable operating cash flow, but free cash flow has decreased slightly over the last year, indicating potential challenges in maintaining cash reserves. The operating cash flow to net income ratio is not favorable due to the net loss, though the company has historically managed its cash flows well.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
133.20M	117.40M	117.30M	104.00M	90.60M	86.20M
	Gross Profit
98.60M	84.30M	97.70M	88.90M	75.10M	70.80M
	EBIT
95.80M	81.90M	83.60M	76.90M	65.90M	60.90M
	EBITDA
-23.20M	56.10M	83.60M	76.90M	67.10M	62.10M
	Net Income Common Stockholders
22.30M	-19.60M	58.70M	358.50M	174.10M	85.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.30M	11.60M	14.50M	10.50M	5.30M	75.60M
	Total Assets
2.14B	2.18B	2.27B	2.08B	1.54B	1.36B
	Total Debt
672.00M	725.00M	738.80M	553.00M	303.00M	288.70M
	Net Debt
655.90M	713.40M	724.30M	542.50M	297.70M	213.10M
	Total Liabilities
708.10M	755.00M	775.60M	588.40M	363.70M	307.70M
	Stockholders Equity
1.43B	1.42B	1.49B	1.49B	1.18B	1.05B
Cash Flow		Free Cash Flow
34.50M	56.20M	58.80M	64.80M	56.10M	47.60M
	Operating Cash Flow
61.70M	56.20M	58.80M	64.80M	56.10M	47.60M
	Investing Cash Flow
55.60M	7.50M	-184.10M	-245.90M	-94.90M	-62.00M
	Financing Cash Flow
-114.60M	-66.60M	129.30M	186.30M	-31.50M	81.10M

Charter Hall Social Infrastructure REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CQE, the sentiment is Positive. The current price of 3.06 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.91, and above the 200-day MA of 2.72, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 71.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CQE.

Charter Hall Social Infrastructure REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARF	73 Outperform	AU$1.59B	18.73	6.13%	4.60%	9.82%	67.46%
DXI	70 Outperform	AU$935.95M	17.92	4.90%	5.56%	-10.26%	―
CQE	69 Neutral	$1.14B	51.68	1.57%	5.00%	0.93%	204.08%
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
ABG	56 Neutral	AU$1.09B	―	-6.24%	6.97%	―	―
COF	53 Neutral	AU$755.63M	―	-8.21%	7.98%	-9.52%	47.94%
CMW	47 Neutral	AU$955.89M	―	-12.54%	8.22%	-52.49%	47.09%

Charter Hall Social Infrastructure REIT Corporate Events

Charter Hall Social Infrastructure REIT Announces Interim Distribution

Charter Hall Social Infrastructure REIT announced an interim distribution of 3.85 cents per unit for the quarter ending 31 March 2025, with payment scheduled for 17 April 2025. The distribution is part of the Attribution Managed Investment Trust framework, relevant for non-resident unitholders. This announcement underscores the REIT’s commitment to delivering consistent returns to its investors, reinforcing its position as a leading player in the social infrastructure investment sector.

Charter Hall Social Infrastructure REIT Announces Registry Office Relocation

Charter Hall Social Infrastructure REIT announced a change in the location of its unit registry office to a new address in Sydney, effective from April 14, 2025. This move is part of the company’s ongoing operations, with no changes to the postal address or telephone number, ensuring continuity for stakeholders and maintaining its strong market positioning.

Charter Hall Social Infrastructure REIT Ceases 175,000 Units in Strategic Buy-Back

Charter Hall Social Infrastructure REIT announced the cessation of 175,000 fully paid units due to an on-market buy-back, effective March 27, 2025. This move reflects the company’s strategy to optimize its capital structure, potentially enhancing shareholder value and reinforcing its commitment to maintaining a robust portfolio of social infrastructure assets.

State Street Adjusts Holdings in Charter Hall Social Infrastructure REIT

State Street Corporation and its subsidiaries have reported a change in their substantial holding in Charter Hall Social Infrastructure REIT. The announcement details adjustments in voting power and relevant interests, indicating a shift in the control and management of securities, which could impact the company’s governance and investment strategies.

Charter Hall Social Infrastructure REIT Updates on Buy-Back Program

Charter Hall Social Infrastructure REIT announced an update on its ongoing on-market buy-back program, with a total of 2,128,538 securities bought back before the previous day and an additional 151,291 securities acquired on the previous day. This buy-back initiative reflects the company’s strategy to optimize its capital structure and potentially enhance shareholder value, indicating a proactive approach in managing its financial resources.

Charter Hall Social Infrastructure REIT Executes Strategic Buy-Back

Charter Hall Social Infrastructure REIT announced the cessation of 808,011 fully paid units due to an on-market buy-back, effective March 12, 2025. This strategic move is likely aimed at optimizing the company’s capital structure and enhancing shareholder value, reflecting a proactive approach in managing its financial operations.

Charter Hall Social Infrastructure REIT Updates on Buy-Back Program

Charter Hall Social Infrastructure REIT has announced an update regarding its ongoing on-market buy-back program. As of March 14, 2025, the company has repurchased a total of 2,128,538 fully paid units, including 105,000 units bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage capital efficiently and potentially enhance shareholder value.