Charter Hall Social Infrastructure REIT (CQE) AI Stock Analysis

• Market Cap: AU$1.07B
• Dividend Yield: 5.18%
• Average Volume (3M): 647.13K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.09
• Shares Outstanding: 371,108,760
• 10 Day Avg. Volume: 522,338
• 30 Day Avg. Volume: 647,134
• PEG Ratio: -0.03
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 9.17
• P/FCF Ratio: 17.18
• 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: AU$3.39
• Price Target Upside: 18.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): AU$129.86M

• Rating: 74 Outperform
• Price Target: AU$3.00 ▲(4.53% Upside)
• Action: Upgraded Date: 08/20/25
• Date: Action: Upgraded 08/20/25

Charter Hall Social Infrastructure REIT demonstrates strong financial performance with robust profitability and cash flow management. The technical analysis indicates strong bullish momentum, although caution is advised due to overbought signals. The valuation is reasonable, supported by a solid dividend yield, but not particularly attractive compared to peers.

Positive Factors

Long-dated, contracted leases

CQE's core model centers on long-dated, contractually backed leases with government and service-provider tenants. These contracts create predictable, recurring rental cash flows with lower default risk, supporting distribution stability and funding capacity over the medium term.

Strong cash generation

An 81.74% improvement in free cash flow and operating cash flow well above net income indicate robust cash conversion. This strengthens the REIT's ability to service debt, fund maintenance or acquisitions, and sustain distributions even if revenue growth slows.

Conservative balance sheet

Moderate leverage and a 67% equity ratio signal financial flexibility and lower refinancing stress. This capital structure supports investment ability and resilience to interest rate or cyclical pressures, preserving long-term operational continuity.

Negative Factors

Revenue decline

An 11.79% drop in revenue is a material headwind for a yield-focused REIT. Persistent top-line contraction can erode distributable earnings over time, forcing reliance on asset sales or higher leverage to maintain payouts, which pressures long-term stability.

Low return on equity

A ROE near 5% suggests the portfolio generates limited returns on invested capital. For unitholders, this implies constrained long-term growth in distributions and capital value, reflecting either capital-intensive assets or under-optimized asset returns.

Distribution sensitivity to lease & financing drivers

Distributions depend on occupancy, indexation, valuations and financing; adverse shifts in tenant demand, policy, or interest rates can structurally reduce cash available for distribution. This creates enduring exposure despite contractual leases.

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 rental income from its portfolio of social infrastructure properties. The REIT enters into long-term lease agreements with operators of healthcare facilities, educational institutions, and other social infrastructure assets, ensuring a consistent and predictable cash flow. Additionally, the company benefits from rental growth over time, driven by annual rent reviews and inflation-linked increases. Strategic partnerships with reputable operators in the social infrastructure sector enhance the stability and attractiveness of its investments. The REIT may also explore opportunities for development projects or acquisitions that align with its investment strategy, contributing further to its revenue base.

Charter Hall Social Infrastructure REIT Financial Statement Overview

Summary

Charter Hall Social Infrastructure REIT exhibits strong profitability and cash flow management, with robust margins and improved free cash flow growth. However, the decline in revenue and low return on equity highlight areas for potential improvement. The balance sheet remains solid with moderate leverage and a strong equity position.

Income Statement

The company shows strong profitability with a high net profit margin of 60.43% and a gross profit margin of 81.53% for the latest year. However, revenue has declined by 11.79%, indicating potential challenges in growth. The EBIT and EBITDA margins are robust, suggesting efficient operations despite the revenue drop.

Balance Sheet

The debt-to-equity ratio is moderate at 0.46, reflecting a balanced approach to leverage. Return on equity is relatively low at 4.96%, indicating limited returns on shareholder investments. The equity ratio stands at 67.23%, showing a strong equity base relative to total assets.

Cash Flow

The company has demonstrated significant improvement in free cash flow growth at 81.74%. The operating cash flow to net income ratio is healthy at 1.79, indicating good cash generation relative to net income. Consistent free cash flow to net income ratio of 1.0 suggests stable cash flow management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	122.40M	117.50M	117.40M	117.30M	104.00M	90.60M
Gross Profit	93.00M	95.80M	84.30M	97.70M	88.90M	75.10M
EBITDA	85.40M	109.10M	56.10M	83.60M	76.90M	67.10M
Net Income	87.00M	71.00M	-19.60M	58.70M	358.50M	174.10M
Balance Sheet
Total Assets	2.26B	2.13B	2.18B	2.27B	2.08B	1.54B
Cash, Cash Equivalents and Short-Term Investments	16.90M	20.00M	11.60M	14.50M	10.50M	5.30M
Total Debt	775.50M	661.80M	725.00M	738.80M	553.00M	303.00M
Total Liabilities	807.80M	697.90M	755.00M	775.60M	588.40M	363.70M
Stockholders Equity	1.45B	1.43B	1.42B	1.49B	1.49B	1.18B
Cash Flow
Free Cash Flow	49.60M	62.70M	56.20M	58.80M	64.80M	56.10M
Operating Cash Flow	49.60M	62.70M	56.20M	58.80M	64.80M	56.10M
Investing Cash Flow	-84.40M	70.30M	7.50M	-184.10M	-245.90M	-94.90M
Financing Cash Flow	35.60M	-124.60M	-66.60M	129.30M	186.30M	-31.50M

Charter Hall Social Infrastructure REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.87 is below the 20-day moving average (MA) of 2.89, below the 50-day MA of 2.98, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CQE	74 Outperform	AU$1.07B	12.30	4.86%	5.18%	―	―
ARF	71 Outperform	AU$1.38B	9.17	6.73%	5.14%	12.10%	29.89%
DXI	70 Outperform	AU$815.38M	11.09	7.99%	6.09%	-8.67%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ABG	57 Neutral	AU$956.21M	12.03	1.70%	7.11%	4.69%	―
CMW	54 Neutral	AU$1.11B	10.93	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$609.28M	9.54	-1.91%	8.63%	-4.50%	88.28%

Charter Hall Social Infrastructure REIT Corporate Events

Charter Hall Social Infrastructure REIT Outlines 2026 Half-Year Results and Strategy

Charter Hall Social Infrastructure REIT has released its 2026 half-year results presentation, outlining highlights, financial performance, portfolio developments, outlook and guidance, and additional information for investors. The release signals continued focus on social infrastructure assets, including education-related and industrial properties in New South Wales, and frames the half-year update as a platform to discuss strategic positioning, portfolio performance, and expectations for the remainder of the financial year.

The most recent analyst rating on (AU:CQE) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Charter Hall Social Infrastructure REIT stock, see the AU:CQE Stock Forecast page.

Charter Hall Social Infrastructure REIT Lifts Profit, Upgrades Distributions on Accretive Social Infrastructure Deals

Charter Hall Social Infrastructure REIT reported strong half-year results to 31 December 2025, with statutory profit rising 51.6% to $47 million and operating earnings up 10.2% to $31.4 million, supporting an 11.8% increase in operating earnings per unit and a 12% lift in distributions. Net tangible assets edged up to $3.90 per unit, while the trust refinanced and upsized $900 million of debt on improved terms, extending its average debt maturity to 4.4 years. Operationally, CQE reshaped its $2.3 billion portfolio through $180.7 million of new social infrastructure acquisitions at an average initial yield of 6.8%, led by a 50% stake in Western Sydney University’s Parramatta campus and an increased holding in the Geoscience Australia facility, funded in part by $88.9 million of early learning divestments at a premium to book value. The portfolio now has an 11.4‑year WALE, 99.6% occupancy and robust rent growth, enabling an upgrade to FY26 distribution guidance and reinforcing the REIT’s positioning to benefit from demographic-driven demand for education and essential services real estate.

The most recent analyst rating on (AU:CQE) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Charter Hall Social Infrastructure REIT stock, see the AU:CQE Stock Forecast page.

Charter Hall Social Infrastructure REIT Delivers Higher Profit and Lifts NTA in Strong Half-Year

Charter Hall Social Infrastructure REIT reported a strong half-year result to 31 December 2025, with statutory profit rising to $47.0 million from $31.0 million a year earlier and operating earnings increasing 10.2% to $31.4 million, or 8.5 cents per unit. Total income grew 6.1% to $69.5 million, while basic earnings per unit climbed 53% to 12.7 cents, reflecting higher fair value gains on investment properties and derivatives. The REIT declared distributions of 8.4 cents per unit, broadly in line with operating earnings, signalling continued commitment to income returns for investors. Net tangible asset backing edged up to $3.90 per unit from $3.86 at June 2025, indicating modest portfolio valuation growth, and the distribution reinvestment plan remained inactive, meaning distributions were paid fully in cash during the period.

The most recent analyst rating on (AU:CQE) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Charter Hall Social Infrastructure REIT stock, see the AU:CQE Stock Forecast page.

Charter Hall Social Infrastructure REIT Sets AMIT Fund Payment for December Quarter

Charter Hall Social Infrastructure REIT has confirmed its classification as an Attribution Managed Investment Trust for the quarter ended 31 December 2025 and detailed the distribution and fund payment components for that period. Unitholders will receive a cash distribution of 4.20 cents per unit, while the total fund payment for AMIT withholding purposes is higher at 7.4014 cents per unit, a figure particularly relevant for non-resident investors and custodians, with full-year tax components to be finalised in AMIT Member Annual Statements expected in August 2026.

The most recent analyst rating on (AU:CQE) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Charter Hall Social Infrastructure REIT stock, see the AU:CQE Stock Forecast page.

Charter Hall Social Infrastructure REIT Announces New Distribution

Charter Hall Social Infrastructure REIT announced a new distribution of AUD 0.042 per ordinary unit, with the record date set for December 31, 2025, and payment scheduled for January 21, 2026. This distribution reflects the company’s ongoing commitment to delivering consistent returns to its stakeholders, reinforcing its position in the social infrastructure sector.

The most recent analyst rating on (AU:CQE) stock is a Hold with a A$3.60 price target. To see the full list of analyst forecasts on Charter Hall Social Infrastructure REIT stock, see the AU:CQE Stock Forecast page.