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Charter Hall Social Infrastructure REIT (AU:CQE)
ASX:CQE

Charter Hall Social Infrastructure REIT (CQE) AI Stock Analysis

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AU

Charter Hall Social Infrastructure REIT

(Sydney:CQE)

Rating:68Neutral
Price Target:
Charter Hall Social Infrastructure REIT's financial performance shows strong revenue growth and a solid equity base, but concerns arise from a net loss affecting profitability and increased leverage. The technical analysis reveals mixed trends, indicating cautious investor sentiment. Valuation is a concern due to a high P/E ratio, though the attractive dividend yield offers some compensation.

Charter Hall Social Infrastructure REIT (CQE) vs. iShares MSCI Australia ETF (EWA)

Charter Hall Social Infrastructure REIT Business Overview & Revenue Model

Company DescriptionCharter Hall Social Infrastructure REIT (CQE) is a real estate investment trust specializing in social infrastructure properties across Australia. The REIT focuses on investments in sectors such as education, healthcare, and government-leased facilities. Charter Hall Social Infrastructure REIT aims to provide stable, long-term income streams for its investors by acquiring and managing high-quality properties that are essential for the community's functioning.
How the Company Makes MoneyCharter 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
72
Positive
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
68
Positive
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
75
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
133.20M117.40M117.30M104.00M90.60M86.20M
Gross Profit
98.60M84.30M97.70M88.90M75.10M70.80M
EBIT
95.80M81.90M83.60M76.90M65.90M60.90M
EBITDA
-23.20M56.10M83.60M76.90M67.10M62.10M
Net Income Common Stockholders
22.30M-19.60M58.70M358.50M174.10M85.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.30M11.60M14.50M10.50M5.30M75.60M
Total Assets
2.14B2.18B2.27B2.08B1.54B1.36B
Total Debt
672.00M725.00M738.80M553.00M303.00M288.70M
Net Debt
655.90M713.40M724.30M542.50M297.70M213.10M
Total Liabilities
708.10M755.00M775.60M588.40M363.70M307.70M
Stockholders Equity
1.43B1.42B1.49B1.49B1.18B1.05B
Cash FlowFree Cash Flow
34.50M56.20M58.80M64.80M56.10M47.60M
Operating Cash Flow
61.70M56.20M58.80M64.80M56.10M47.60M
Investing Cash Flow
55.60M7.50M-184.10M-245.90M-94.90M-62.00M
Financing Cash Flow
-114.60M-66.60M129.30M186.30M-31.50M81.10M

Charter Hall Social Infrastructure REIT Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.97
Price Trends
50DMA
2.90
Positive
100DMA
2.81
Positive
200DMA
2.71
Positive
Market Momentum
MACD
0.02
Positive
RSI
51.69
Neutral
STOCH
20.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CQE, the sentiment is Neutral. The current price of 2.97 is below the 20-day moving average (MA) of 2.98, above the 50-day MA of 2.90, and above the 200-day MA of 2.71, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CQE.

Charter Hall Social Infrastructure REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUARF
73
Outperform
AU$1.54B18.116.13%4.64%9.82%67.46%
AUDXI
71
Outperform
AU$920.08M17.624.90%5.66%-10.26%
AUCQE
68
Neutral
$1.10B49.831.57%5.41%0.93%204.08%
61
Neutral
$2.83B10.920.41%8438.90%5.75%-21.03%
AUABG
56
Neutral
AU$1.06B-6.24%7.17%
AUCOF
53
Neutral
AU$722.78M-8.21%9.13%-9.52%47.94%
AUCMW
47
Neutral
AU$942.79M-12.54%8.33%-52.49%47.09%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CQE
Charter Hall Social Infrastructure REIT
2.97
0.68
29.47%
AU:COF
Centuria Office REIT
1.21
0.14
13.08%
AU:ARF
Arena REIT
3.84
0.35
10.03%
AU:CMW
Cromwell Property Group
0.36
-0.03
-7.69%
AU:DXI
Dexus Industria REIT
2.90
0.13
4.69%
AU:ABG
Abacus Property Group
1.18
0.14
13.46%

Charter Hall Social Infrastructure REIT Corporate Events

Charter Hall Social Infrastructure REIT Announces Interim Distribution
Apr 14, 2025

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
Apr 14, 2025

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
Mar 27, 2025

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
Mar 25, 2025

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
Mar 16, 2025

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
Mar 13, 2025

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
Mar 13, 2025

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.

Charter Hall Social Infrastructure REIT Updates on Buy-Back Program
Mar 12, 2025

Charter Hall Social Infrastructure REIT has announced an update regarding its ongoing on-market buy-back program. As of March 13, 2025, the company has repurchased a total of 2,023,538 fully paid units, including 106,000 units bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance value for its stakeholders.

Charter Hall Social Infrastructure REIT Updates on Daily Buy-Back Progress
Mar 10, 2025

Charter Hall Social Infrastructure REIT has announced a daily update on its ongoing on-market buy-back of securities, with a total of 311,242 units bought back on the previous day, adding to the cumulative total of 1,606,296 units. This buy-back initiative reflects the company’s strategy to optimize its capital structure and potentially enhance shareholder value, signaling confidence in its financial position and future prospects.

Charter Hall Social Infrastructure REIT Updates on Buy-Back Program
Mar 9, 2025

Charter Hall Social Infrastructure REIT announced an update on its ongoing on-market buy-back program, reporting a total of 1,387,083 securities bought back before the previous day and an additional 219,213 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, reflecting a proactive approach to managing its financial resources and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.